Oil Hike And Overpriced Homes, Yet No Cuts For Crony Subsidies


SHAH ALAM SEPT 6th: The rise in house prices, which is the current favourite hot topic, just adds to the string of hardships the people are facing since the oil price hike, said Rafizi Ramli.

The Pandan MP said the building material suppliers and housing developers, predictably, are using the oil price hike as a reason to surge house prices as well, apart from the increased cost of labour factor.

He also believes that there are companies are doing this for the sake of business continuity, or rather to take advantage of the situation.

Quoting the president of the Real Estate and Housing Developers’ Association Datuk Seri Michael Yam Kong Choy, The Star suggested that the increase in oil prices is also expected to contribute to the surging house prices by up to 10 percent.

To avoid the problem, Rafizi said the government should cut crony companies’ subsidies before putting a financial burden on the people.

“Cut corporate subsidies, reduce costs and also reduce the incentives paid to large corporations. Most of them are cronies. Unless if all these things have already been done and there is no other choice, only then can we talk about oil pricings. If we do not raise the price of oil by disregarding how much money is spent on corporate subsidies, the result would be what is happening right now (increased prices),” he told TV Selangor.

Rafizi also said, for the young people who are just starting out, it is difficult enough to for them obtain a home, let alone settling their education loan debts with the National Higher Education Fund Corporation (PTPTN).

“Clearly, the ministers are detached from reality when the Minister of Domestic Trade and Consumer Affairs Datuk Hasan Malik said only 0.1 percent of goods’ prices will rise. This is not true. The correct approach would be understanding the situation of the people. Every time oil price increases, the people would also feel the burden of the prices of other goods,” he said.

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