Fuel Price Increase

Abdullah said it was not the Government’s policy to dip into Petronas’ coffers to subsidise domestic fuel prices. Income from the national oil company was used for development projects and set aside for investment.

Goverment concern that increasing the prices in stages would create more uncertainty and allow the prices of goods to spike at regular intervals. As a solution, the price increased 30 sen for year 2006 and will promise stable fuel price regardless of world price of crude oil.

The more stable fuel price for the rest of the year might stabelize Malaysia's economic although we do feel the pain for these few months. The market will soon adapt to the fuel price and things will back to normal again. The foreign investor will probably happy with the policy and predict Malaysia to have stable economic growth. Now a day, share market doesn't really effect by fule price anymore unless there's some dramatic changes.

However, let's think outside the box where it might cause political unstable and public reaction do count as well.