Netty Ismail’s Post

In my latest column offering, I take a stab at how the Malaysian government has a habit of making big announcements that end up short on key details on implementation. It's not enough to just say why something needs to be done. People need to know who exactly will be affected and how it will be carried out. And maybe start talking to people first before deciding on something so big like the petrol subsidy cuts. https://lnkd.in/gEpK2Efr

If fuel subsidy rationalisation takes place, how would it affect the consumer? DIRECT IMPACT Although there is no clear plan being presented by the government on how this will be done, it is assumed that the retail of petrol (pump price) will be at market rate, with cash assistance being transferred directly to lower income group to cover the impact of the increase. Estimated market price for RON95 could be RM3.07 (RON97 price less 30 cents), which translates into 50% increase in our petrol expenses. If we currently use RM500 worth of petrol, it means we will be forking out additional RM250 (of course, this is before the possible cash assistance) INDIRECT IMPACT Increase in petrol price will lead to increase in prices of many other consumer goods, considering petrol to be one of the key business expenses. In fact, increase in prices could even happen before hike in petrol cost, due to consumer market sentiment. IMPORTANCE OF SUBSIDY RATIONALISATION It is important to understand why this program is important for Malaysia. Apart from managing the fiscal deficit, it is also, in simple words, helping the government to manage the financial better. It is estimated that Malaysia could save almost RM30 billion if this takes place. Of course, this huge amount of cash can be used to develop the country in many areas. Indeed, this program is also a sustainable way to manage finance because we can never depend on fuel subsidy forever It is going to be a "new burden" for consumer in short term but we have to go through this together as a nation, for a better future in a more competitive world OUR ROLE AS EMPLOYER We have already introduce a four-day work week and we are looking into adding another day off to save our employees cost. We will also provide feeder car from the nearest train station to ensure our staff could take public transport seamlessly to office. We hope that Malaysian can support this initiative and start thinking on how to manage during the transition time. https://lnkd.in/gRRp8zCX

The economist advises that diesel and petrol subsidy cuts in Malaysia should be implemented gradually to manage its impact on inflation and the economy. This is because sudden subsidy cuts can lead to sharp increases in fuel prices, causing inflationary pressures and affecting the purchasing power of households, particularly the middle-income group (M40s). Gradual implementation of targeted subsidies, as announced by the government, can help soften the price impact on consumers and firms, avoid sharp inflation increases, and build government credibility for spending quality[1][3]. The government has already taken steps to rationalize subsidies, such as cutting electricity subsidies in 2023 and implementing diesel subsidies in phases in 2024. These measures aim to address the fiscal ramifications of fuel subsidies, which have grown annually at an exponential rate since the 1990s, placing growing pressure on government finances and exacerbating national deficit for over a decade[4]. The government's Central Database System (Padu) is expected to play a crucial role in implementing the targeted subsidy program and minimizing the occurrence of marginalized risks. Padu provides a combination of socio-economic information for every individual, which is an important tool in identifying eligible groups for targeted subsidies[3]. In summary, the economist suggests that gradual implementation of targeted subsidies, along with careful consideration of the fiscal and socio-economic impacts, can help manage the transition from blanket fuel subsidies to a more sustainable and equitable system in Malaysia. Citations: [1] Economist says diesel and petrol subsidy cuts need to be ... - I3investor https://lnkd.in/gpP4NsU6 [2] Malaysia must take bold economic action | East Asia Forum https://lnkd.in/gks4JUC5 [3] Targeted fuel subsidy could squeeze M40s hardest, say experts - The Edge Malaysia https://lnkd.in/gkmyUJCG [4] [PDF] Chapter 9 Economic Impacts of Subsidy Rationalization Malaysia https://lnkd.in/gD2H376A [5] Malaysia cuts fuel subsidies to boost economy, offers poor more help https://lnkd.in/gztMzwtS

📢 June 2024 Monthly Roundup: Key updates and insights from Osadi. ✅ Diesel prices in Peninsular Malaysia increased by RM1.20 per litre as part of the government's subsidy rationalization plan. ✅ Economists maintain a calm outlook on inflation, with minimal direct impact on CPI but potential indirect effects. ✅ The move aims to save approximately RM4 billion annually, enhancing fiscal efficiency. #InsightMonthlyRoundup #Osadi #EthicalRecruitment #ResponsibleBusiness #ManpowerSolutions #ManpowerSupply #ManpowerAgency #ManpowerConsultancy

News –10th October 2024 External borrowing Reports indicate that the government has managed to secure 1.2 billion dollars under the Saudi Oil Facility and 430 million dollars from the Islamic Development Bank under its International Islamic Trade Finance Corporation with the primary objective of advancing trade between Organisation of Islamic Countries (OIC). External borrowing - Editorials - Business Recorder (brecorder.com)   IT exporters eye Singapore market Pakistani IT companies exporting IT and IT-enabled services are exploring their potential in Singapore’s emerging markets to enhance the country’s penetration and exports in the Asean region. IT exporters eye Singapore market - Business & Finance - Business Recorder (brecorder.com) Fauji: Still mid It’s Fauji’s world and we are all just living in it, pun unintended. By Fauji, we mean Fauji Cement (PSX: FCCL), and by world, we mean the cement industry operating in Pakistan. After taking over Askari Cement, Fauji very quickly transformed from a mid-size cement company to the third largest cement capacity holder in the country, next to Lucky Cement and Bestway Cement. Its revenues from FY24 show it too. But snagging a market share of nearly 13 percent hasn’t been enough, as, despite a larger capacity and ballooning revenues, the company still stands very middle of the pack. Fauji: Still mid - BR Research - Business Recorder (brecorder.com)   Refined POL items and solar power: Chinese team to explore deals with PD today A Chinese delegation China Asia Economic Development Association (CAEDA) is to hold meeting with Ministry of Energy (Petroleum and Power Divisions) on Thursday (Oct 10) to discuss avenues of refined petroleum products and solar power grid connections matters, well-informed sources told Business Recorder. Refined POL items and solar power: Chinese team to explore deals with PD today - Business Recorder (brecorder.com) ISMO: CCoE approves proposal by power division The Cabinet Committee on Energy (CCoE), headed by the Prime Minister, has approved the along-awaited proposal of Power Division to establish an Independent System and Market Operator (ISMO) by merging the Central Power Purchasing Agency-Guaranteed (CPPA-G) and the National Power Control Center (NPCC). ISMO: CCoE approves proposal by power division - Business Recorder (brecorder.com)

These two Business Day articles stress the urgent need for South Africa to quickly address the mountains of debt that municipalities owe to Eskom Holdings SOC Ltd. This has reached a point of life or death for the South African economy, and if not addressed, could undermine the efforts made to reform Eskom and turn it's perilous situation around. The cost of living in South Africa has reached painful levels that are the direct consequence of the debt municipalities cannot pay because they cannot collect what's owed to them. Our exports may start to become uncompetitive in the Eurozone if we do not change the fate of Eskom now! 1. Eskom targets revenue of R1.4-trillion from 2026-2028 https://lnkd.in/dYhk85iK 2. Ramokgopa mulls how to tackle Eskom’s tariff hike https://lnkd.in/dwDUxVZZ

Diesel fuel prices soared by more than 50%, as the country slashed its diesel subsidies in West Malaysia as part of a wider shift away from blanket subsidies. The move effectively aligned diesel rates with market prices, as pump prices shot up from RM2.15 (S$0.61) to RM3.35 (S$0.96) a litre — a 56% increase. The diesel subsidy cuts are expected to bring about savings of RM4bn, which will be channelled to fund public transport and cash aid. Suhaimi Ilias, chief economist at Maybank, said that the country’s inflation to average at 2.4% this year, which is higher than the 1.7% average for the first four months. This implies that inflation could pick up from June. If executed well, Mr Suhaimi said that the reforms would demonstrate the government’s political will to undertake unpopular but necessary policy reforms. The move is not expected to have a “material impact” on Singapore’s overall inflation. Dr Chua Hak Bin, economist at Maybank, noted however, that there may still be second-order effects on the prices of certain goods, including food items. However, Dr Chua said that the cost of fuel used during transportation is not as significant compared to the overall costs of labour, rents and vehicles. Impact on overall menu prices in Singapore will likely be small, he added.

Experts advocate export promotion, market diversification to end balance of payments crisis #inp #independentnewspakistan #inp_wealthpk #PaymentsCrisis #MarketingTips Read Article, click on ⬇️ link

The Nigerian Communications Commission (NCC) has approved a 50% tariff hike, the first in over a decade, amid losses from naira devaluation and rising costs. https://lnkd.in/dX_9aAHU