Sunday, November 9, 2008

My opinions on reducing fuel price towards the economy affect.

Recently, the federal government of Malaysia had just reduced the fuel price RON97 from RM2.55 to RM2.15. It is a good step for healthy growing economy by reducing the cost of living (goods, groceries etc) and especially for a student who drive to the university or college like me. Apart of that it tremendously increases the growing of economy since the price of fuel reduced. However, the negative affect that it might just increase the inflation rate as the money in the market also increase. Example, we can buy anything that we want compared from the previous time which is need a choice between two or more items that we want which can give a great benefit towards us. Thus in a mean time, the prices of goods also increase since the power of buy increases and the inflation increase. So I really hope that the government really study in this matter since our currency exchange are weaker then previous time especially currency exchange with Singapore (RM2.28 to RM2.45), Indonesia (RM0.0000378 to RM0.0000347) and United States (RM3.30 to RM3.60). Sometimes US currency exchange rate would be better if the rate is weaker since our commodity trade using US currency exchange. Thus, it will increase the trade as the other country can trade or buy more our product. Thus the production in the country increases and the job vacancies also available with the respect of increasing of trade and production. So it can prevent the jobless people in this country. My suggestion that let it be RM2.00 or RM1.80 is the benchmark of the fuel prices and increases the exchange rate to Singapore and Indonesia as I travel often to Indonesia :) and I want to be our country exchange rate wouldn’t give a much different with Singapore. Malaysia is a good country why it can’t be the exchange rate like Singapore since our country better then them?

This is only a student opinion. :)

1 comment:

GM Yusri said...

Salam bro
Dis is my 1st vsit here
Try check my blog
C u there!