Folks,
I know this is a bit late to post of subsidy rationalization measure, but it is better than never, right?
Alright.
Both countries, Malaysia and Indonesia, have embarked on subsidy rationalisation measure.
As for Malaysia, the government has moved to set the prices of petrol and diesel from automatic pricing mechanism to a managed-float system.
According to Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek, the petrol and diesel prices will be reviewed monthly, in which the average cost of petroleum products from the previous month will be used as reference in determining the price for the following month.
The result of the managed-float implementation had seen the current price of petrol drops by 35 sen for petrol and 30 sen for diesel.
It is worth noting that the World Bank had in its latest “Malaysia Economic Monitor” report said that the removal of fuel subsidies will help the government to save an estimated of between RM10 billion and 12 billion in 2015.
You can view the press release – in Malay – here (in PDF), and also below.
As for Indonesia, its president – Joko Widodo (Jokowi) – came under fire from its own citizens for raising the price of fuel.
But I think he is taking a good step to reform subsidy measures, and let the market forces dictate the price. Reform in Indonesia, as well as in Malaysia, is progressing, albeit at relatively steady (or slow?) pace.
Let's read the article reported by the Wall Street Journal below.
I have converted it to the PDF version, here.
I know this is a bit late to post of subsidy rationalization measure, but it is better than never, right?
Alright.
Both countries, Malaysia and Indonesia, have embarked on subsidy rationalisation measure.
As for Malaysia, the government has moved to set the prices of petrol and diesel from automatic pricing mechanism to a managed-float system.
According to Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek, the petrol and diesel prices will be reviewed monthly, in which the average cost of petroleum products from the previous month will be used as reference in determining the price for the following month.
The result of the managed-float implementation had seen the current price of petrol drops by 35 sen for petrol and 30 sen for diesel.
It is worth noting that the World Bank had in its latest “Malaysia Economic Monitor” report said that the removal of fuel subsidies will help the government to save an estimated of between RM10 billion and 12 billion in 2015.
You can view the press release – in Malay – here (in PDF), and also below.
As for Indonesia, its president – Joko Widodo (Jokowi) – came under fire from its own citizens for raising the price of fuel.
But I think he is taking a good step to reform subsidy measures, and let the market forces dictate the price. Reform in Indonesia, as well as in Malaysia, is progressing, albeit at relatively steady (or slow?) pace.
Let's read the article reported by the Wall Street Journal below.
I have converted it to the PDF version, here.
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| Source: The Wall Street Journal, Friday-Sunday edition, Jan 2-4, 2015 |
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