AHMAD BADAWI : Expect More Price Hikes!!

Source : Malaysiakini

Abdullah said that under the new scheme, the government will maintain a 30-sen fuel subsidy, which is independent of the market rate of fuel prices.

For example, if the market rate is RM3 per litre, the local pump price will be RM2.70 per litre with the 30-sen subsidy.

He said that the government would review the market price on monthly base and announce the subsidised price accordingly.

Abdullah also said that he was confident the economic growth could be maintained at five percent and inflation at four to five percent.

Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad, who was also at the press conference, conceded that the increase would impact on inflation, which came in at 3.0 percent in April.

"With this hike, the CPI (consumer price index) is expected to rise to 5.0 percent" this year, he said.

He also said that the new price of RM2.70 did not reflect the full market value, which could be as high as RM3-4 when the price controls are completely removed in August.

Also at the press conference were Deputy Prime Minister Najib Abdul Razak, Second Finance Minister Nor Mohamed Yakcob, Minister in the Prime Minister's Department Amirsham Abdul Aziz, Information Minister Ahmad Shabery Cheek and International Trade and Industry Minister Muhyiddin Yassin.