Tuesday, June 3, 2008

N. I. G. Group - Badly Afflicted

When most of the Sarawakians are still deep in Gawai holiday mood, the news of price rises hit the streets with thundering blasts.

First of all, the prices of rice took a double-digit lift-off when the Federal government decided to let the imported rice prices to tread along the market equilibrium line.

Secondly, Pak Lah would put in place a new mechanism to subsidise the fuel. According to Pak Lah, the proposed structure is not only less burdensome to the government, but also fairer to the rakyat. The proposed fuel subsidisation scheme is still veiled - but the market hotly speculates that our fuel prices are set to move up.

Inflating prices of this magnitude have taken the NIG (negative income growth) groups to the greatest hit.

With our official inflation rate at 3.1%, Malaysia is heading towards negative real interest rate zone. And coupled with the meagre wage rise, a lot of us are fast turning into NIG!

So far, I have seen no light at the end of the tunnel!

The above picture is by courtesy of United Daily.

5 comments:

Bengbeng said...

i was with some friends...this morning. everybody is feeling very negative. i don't doubt the nation's leaders dont have much of a choice in this matter.. but if they let the price of fuel reflect the real market price, lots of people all over the country will suffer. i dont just mean at the stage where they cut out luxuries. i mean at the stage where they will have to opt to take alternatives and drastic lifestyle changes..mayb even eat less

Tony Hii said...

bengbeng, we are now into an era of explosive inflation.

-eiling- said...

Everytime Bodohwi announces that nothing is going to happen, something will happen especially with the fuel price hike now!!! @#$%

Tony Hii said...

eiling, sometimes we can't bank too much on political talk.

Bengbeng said...

2.70 confirmed