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| Wednesday, June 4, 2008 |
| Shocked |
Finally the government has increased the price. Though I agree with the main idea behind it, but I am totally shocked with the way it is implemented.78sen overnight??? Only last week the government announced it is thinking of banning the sales of petrol to foreigners but suddenly they changed their decision to the other extreme side. What???
I may see the reason why it's one off-increase rather than gradually. If they were to increase the price the gradually, public will expect the price in next month higher than today thus will resort to buy a lot of petrol today, which might lead to sudden shortage of petrol. But the government certainly can be more subtle, like reducing 30cents or 40cents and do not announce about its next move. Argh there are so many economists in Malaysia who certainly know about the importance of controlling "EXPECTATION", yet no one dare to advise our government (or the government did not listen???)
What I'm afraid is not about the petrol, but rather than the consequences of the sudden increase. People may become panic and resort to many irrational activities. For example price of goods might be skyrocketting, share price will fall and lead to other activities. The chain will be longer and longer, and I'm afraid we will be where we were at 1978.
If only the government think better....
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posted by Shaz @ 11:33 PM  |
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| About Me |
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Name: Shazwan Abdul Razak
Home: Wellington New Zealand
About Me: 3rd year student in Victoria University of Wellington
See my complete profile
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