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Moolah
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Posting #1: Wed Jun 4th, 2008 12:28 |
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Macam Mana ni???
any comments????
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=DJ UPDATE: Malaysia To Hike Gasoline Prices By 40% Thursday
KUALA LUMPUR (Dow Jones)--Malaysia Wednesday announced a 40% increase in gasoline prices from Thursday, a move that will increase inflation but which will ease the burden of ever-costlier subsidies on the government budget.
Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad said consumers will be entitled to 800 liters of subsidized fuel a year and thereafter will have to pay the market price.
The government will also provide a yearly cash rebate to owners of small and medium-sized cars to offset their burden from the huge hike, he said.
Diesel prices will rise by MYR1 a liter.
Subsidies in Malaysia have kept the price of fuel there among the lowest in Southeast Asia and the increase in the gasoline price will save the government MYR4 billion ($1.23 billion) in 2008, Shahrir said.
Prime Minister Abdullah Ahmad Badawi, who later announced a suite of measures including new power tariffs, told reporters that the steps will, in total, save the government MYR13.7 billion.
However, Badawi warned that the fuel price increases will push up consumer price inflation to between 4% and 5%. Inflation was 3.0% on year in April. The country's economy will grow by 5% this year, taking into account the latest measures, he added.
He also said the government would adjust fuel prices on a monthly basis.
Malaysia has subsidized energy prices since 1983. Its gasoline prices at the pump are among the cheapest in Asia, selling for just MYR1.92 a liter, less than half the price in neighboring Singapore.
But rising oil prices on the international market have made the cost of those subsidies ever more burdensome. The futures price for a barrel of crude rose to over $135 in late May but has since fallen to below $125 a barrel.
At $130 a barrel, Malaysia's fuel subsidy bill was estimated at MYR50 billion a year, or equivalent to about a third of the government's 2008 budgeted expenditure.
The government last raised the retail price of gasoline and diesel by 30 sen a liter and liquefied petroleum gas by 30 sen a kilogram in February 2006.
The change in the subsidy scheme Wednesday has been hinted at by various government officials over recent weeks but is a move that is likely to further undermine support for the ruling Barisan Nasional coalition which has been struggling to regain voter confidence after losing its two-thirds parliamentary majority at a general election in March.
It's also likely to make monetary policy setting by Bank Negara Malaysia, the country's central bank, a tougher prospect given the reduction in subsidies will boost overall inflation rates.
The subsidy rethink follows similar steps taken by other governments in the region. Indonesia raised fuel prices by an average of 28.7% last month. Taiwan and Sri Lanka have also raised prices while India Wednesday also announced increases in energy prices.
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Moolah
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Posting #2: Wed Jun 4th, 2008 13:21 |
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On a seperate note.... how ironic this news clip...
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04-06-2008: Politics, inflation worries continue to irk investors
by Sharmila Ganapathy
KUALA LUMPUR: Political uncertainties and expectations of higher inflation in the wake of subsidy reforms continue to irk investors, prompting some analysts to adopt a cautious outlook on the domestic market.
Political uncertainties and fighting the inflation bullet too late remained key issues, said Aseambankers Malaysia Bhd head of equity research Vincent Khoo. “The market remains cautious in the short term, it could be more optimistic by year-end as people look forward to a recovery in the global economy.”
The research house said in a report yesterday that it was maintaining a bearish outlook on the market as investors remained sidelined in their need to assess political and inflationary developments, as well as gauge the impact of escalating crude oil prices and inflation on emerging countries.
Aseambankers added that the Kuala Lumpur Composite Index’s (KLCI) underperformance could extend further. “The People’s Alliance threat to wrestle legislative power from the country’s ruling coalition, combined with Malaysia’s late action to bite the inflation bullet (due to extended subsidies), will hold back the KLCI’s relative regional performance,” it said.
It noted that the KLCI had recovered by only 7.1% in US dollar terms from its low in March, whereas Singapore’s Straits Times Index had risen 14.5% and Hong Kong’s Hang Seng Index had climbed 9.1%.
Additionally, the KLCI was also fairly valued against regional peers, based on projected price-earnings ratio (PER), Aseambankers said. Based on 2008 numbers, the domestic market is valued at 14.1 times PER, while Singapore and Indonesia are valued at 15.2 times and 13.1 times, respectively.
Other analysts have even stronger views on the effects of the political climate on the stock market. According to Bloomberg, in a report on Monday, Goldman Sachs & Co had said Malaysia’s political volatility made its stocks least favoured in Southeast Asia.
Bloomberg quoted Goldman saying in the report that Malaysia was “in unchartered territory”. “The premium market valuation that Malaysia enjoyed relative to most of its Asean peers had political stability as one of its pillars - this is now in question,” Goldman said.
The global securities firm recommended that investors also pare holdings in Thailand, Indonesia and the Philippines and cut the equities of all four nations from market weight to underweight. The Philippines is under inflation threat, while Indonesia is facing a tighter fiscal and monetary backdrop, Goldman said.
Other analysts however, were more optimistic. Kenny Yee, head of research at OSK Investment Bank Bhd said while the Malaysian market was “middle of the road” compared to regional peers, the country was still receiving substantial inflow of foreign money.
Yee said that further political clarity would increase the stream of foreign inflows. Investors, he said, would focus on sectors such as commodities and steel.
“Malaysia is still better off (economically) than many other countries. However, it has been a laggard compared to other regional markets due to political uncertainties and concerns of the effects of the global economic slowdown on the domestic market,” CLSA Malaysia head of research Loong Chee Wei told The Edge Financial Daily.
“We’re benefiting from the commodity boom and rise in crude oil prices, the economy is still resilient. We believe that reforms such as realigning subsidies will lead to better allocation of resources and promote productivity in the long-term,” he added.
In the short-term however, concerns abound on how the change in subsidies will push up inflation and impact private consumption, Loong said, adding that private consumption this year could decline as a result.
The government is due to announce its fuel subsidy reforms today, which are expected to knock up pump prices for consumers.
Bernama, meanwhile, reported yesterday that the government is considering giving cash directly to the poor and setting up a quota system on purchases.
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random
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Posting #3: Wed Jun 4th, 2008 13:35 |
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Haha kena tipu.. Aug konon...
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James Bull
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Posting #4: Wed Jun 4th, 2008 14:51 |
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random wrote: Haha kena tipu.. Aug konon...
Last time he announced general election the next day after he said no election in near term.
This time sama cerita juga! 
So where is the trust?
Malaysia apa apa pun boleh! 
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The only thing we learn from financial history is that we learn nothing from it!
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Moolah
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Posting #5: Thu Jun 5th, 2008 02:14 |
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Macam mana ni???
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MooFassa
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Posting #6: Thu Jun 5th, 2008 03:26 |
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from Star Biz...
Thursday June 5, 2008
The impact of higher fuel cost
NEWS ANALYSIS
By YEOW POOI LING
MALAYSIANS today are bracing themselves for a hike in petrol and electricity tariffs that will send prices skyrocketing; and a bigger hole in their wallets.
Since most expected the fuel hike to be effective in August, it came as a nasty shock to learn that the Cabinet meeting yesterday decided the 41% and 63% increase in petrol and diesel prices would take effect today.
Tenaga Nasional Bhd (TNB), having to pay more for gas now, is allowed to raise electricity tariffs by 18% for residential premises and 26% for companies from July 1.
Meanwhile, planters have been slapped with hefty windfall taxes as the cooking oil cess is now abolished. Independent power producers (IPPs) are also now subject to a windfall tax.
Coupled with increases in food prices, the higher cost of energy would have a huge knock-on effect on prices of goods.
Although the Government indicated that inflation might rise to 4% to 5% this year, the real inflation effect could be considerably larger.
Malaysia's petrol prices were deemed among the lowest in the region, average salaries are not among the highest.
“These are drastic moves, which would lead to erosion in consumers' disposal incomes and sentiment turning cautious,” said Bank Islam Malaysia Bhd senior economist Azrul Azwar.
He said consumers were likely to cut back on travel and vacation, and eating out in restaurants and hold back spending on “big ticket items” like property and cars.
Since consumer spending supported the gross domestic product (GDP) growth in the last couple of quarters amid the softer external environment, the moderation in consumption would hit the economy, Azrul said.
Sectors like retail, consumer, property and automotive would also be negatively impacted, he added.
While it remains to be seen how the windfall taxes would benefit the rakyat, Azrul suggested that the monies from IPPs be used to subsidise the cost of producing electricity so that TNB would not have to raise tariffs.
As inflation was driven by rising cost and not demand, it would be a tough call for Bank Negara to curb the pressures, he said.
“I hope the central bank would not increase interest rates as it would affect the economy and consumer spending further,” Azrul added.
Meanwhile, an industry observer said the Government's measures were “too much, too soon” as even before the people could come to terms with the recent surge in food prices, their purchasing power has been further eroded.
“They (these measures) could have been staggered to ease the people's burden,” he said.
Also, instead of imposing windfall taxes, the Government could have encouraged the companies to use the profits to increase productivity, which would trickle down into the economy.
“It's not the companies' fault that their margins improved because of better prices,” he added.
On a positive note, an industry player said: “At least there will be more demand for kap cais (small motorcycles) and motorbikes now!”
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MooFassa
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Posting #7: Thu Jun 5th, 2008 03:28 |
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from Star also....
WOWWWWWW!!!!!!!!!!!!!!!!!!!!!!!
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Thursday June 5, 2008
Petronas to raise selling price of gas by 187% from July 1
PETALING JAYA: Petrolium Nasional Bhd will increase the selling price of gas by as much as 187 % effective July 1. Prices of natural gas for vehicles (NGV) used by taxis and liquefied natural gas (LNG) will be kept unchanged.
Gas supplied to power producers will increase by 124% to RM14.31 per million British thermal unit (mmBtu) from RM6.40 per mmBtu.
For commercial users who use less than 2 mmscfd (million standard cu ft per day), there will be a 161% price increase to RM24.54 per mmBtu from RM9.40 per mmBtu where those who use more than 2mmscfd will pay 187% more at RM32.56 per mmBtu compared with RM11.32 per mmBtu before. However, special assistance will be given to users of Gas Malaysia Sdn Bhd in the small and medium enterprises category, who will face a smaller increase in gas rates.
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MooFassa
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Posting #8: Thu Jun 5th, 2008 03:29 |
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Thursday June 5, 2008
Analysts: Transport counters affected
PETALING JAYA: Analysts expect transport counters on Bursa Malaysia to be negatively affected by the fuel price hikes announced yesterday but believe the inflationary impact would send ripples through all market sectors.
Areca Capital Sdn Bhd CEO Danny Wong told StarBiz he was more worried about the total effect on all sectors.
“Transport yes, but everything (all market sectors) would be affected,” he said.
He also said that it was certain that transport companies would end up bearing higher costs although the amount would depend on how much they could pass on to clients.
If airlines and maritime companies were also considered transport related counters, these were already exposed to global market fuel prices, he added.
The overall inflationary impact, he said could affect these stocks as well.
On the plus side, Wong said raising fuel prices would reduce the smuggling of petrol, which was causing subsidy leakage.
KSC Capital director of research Choong Khuat Hock said the main concern for transport stocks would be whether the companies could pass through the price hike to customers.
“All domestic haulage costs should go up,” he said.
Choong said any listed counter exposed to domestic haulage costs, including logistics companies that focused only on international transport, would be affected.
These companies include Integrated Logistics Bhd and Konsortium Logistik Bhd, which will be directly affected.
Choong said national shipping corporation MISC Bhd had a haulage business as well, but its contribution was not significant to the group's earnings.
He said the “whole inflationary impact” from all inputs, including a probable rise in staff costs, would cause “a major impact”.
One possible impact would be haulage companies switching to lorries of European make with diesel engines that give almost 30% better mileage than other models.
Meanwhile, Malaysian Automotive Association president Datuk Aishah Ahmad said if the oil hike was across the board, people would need to reconsider purchasing cars and this would have an impact on higher capacity cars.
“The fuel hike will also affect food prices. When traffic charges go up, everything goes up,” she added.
On the total industry volume forecast, she said the first half was on track, “but we may need to review our forecast for the second half.''
If the oil hike was just on RON97 fuel, then it would mainly affect the high-end cars, she said, adding: “The masses should remain unaffected.”
Aseambankers head of research Vincent Khoo told StarBiz the impact would be detrimental to inflation and the economy, taking into account not just a petrol/diesel price increase, but also other measures like an increase in electricity tariff.
“Transporters are also likely to face a sharp slowdown in demand apart from higher costs,” he pointed out.
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kimnrennin
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Posting #9: Thu Sep 25th, 2008 10:39 |
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Business was unusually super brisk at all other petrol stations too. This particular Mobil gas station was full of cars. The queue stretched all the way onto the highway as far as your eyes can reach! 2 or 3 kilometers long? Can you believe it? I believe by the speed it was going perhaps you need to wait up to an hour for your turn to reach the gas pump. How could these people be so patient to wait in the line… anyway, for RM50 worth of saving, perhaps it’s all worth it!
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kimrennin
http://www.drivenwide.com
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