By : Zuraida Kamaruddin
The latest announcement by Energy, Green Technology and Water Minister Maximus Ongkili on the new electricity rates which will see a hike of 15% will definitely affect a large number of the Malaysian population even though it is reported that only 1.89 million users or 29.33 percent of the domestic consumers will be affected.
This latest price hike following the sugar and petrol price revision places additional burden on families. To make matters worse is the impending 6% GST which will be implemented in April 2014.
How is the minimum wage earner of RM900 per month supposed to keep up with these significant price increases?
If the purchasing ability of the common man is severely affected, we can only expect more and more problems in the future.
According to the UNHDP report in 2004, Malaysia has the highest income disparity between the rich and poor 38.4% or wealth are controlled by 10% of the people and as compared to the poorest 10% who control only 1.7%. This evidently shows that the monthly household disposable income of the majority of the Malaysians is insufficient to sustain an affordable lifestyle and is also indication that there may be a rise in debts and criminal activities in the near future.
A government that cares will have better financial planning that eases the rakyat’s burden rather than resorting to price hikes and taxes to create even more hardships for her people.
Instead of mistreating Malaysians with more financial stress, the government should withdraw the subsidies given to Independent Power Producers (IPP) where all unused and over-generated supply are sold at a high price to Tenaga National Berhad (TNB) and the subsequent costs absorbed by the people.
*Zuraida Kamaruddin is MP Ampang