Sugar Price Up 20 sen, Food and Drinks Will Also Go Up

UPDATED: Interesting reading…

“It was better when the sugar supply monopoly was held by the Kuok Group through the Perlis Plantations Bhd. There was no increase of sugar prices for 10 -15 years. But, the moment it came under the control of Felda Global, the price of sugar has gone up by RM0.85 cents per kilo in a short period of time,” he said (Roland Chia). Read here.

The Government is keeping their word in reducing subsidies for a number of essential items and today is SUGAR and a few days ago RON 97 petrol.

Read the news here from The Malaysian Insider.

As the Government continues on its path of reducing and eventually removing subsidies, why is it also playing PR saying Malaysia has no inflation? (Actually, if inflation is below 3%, technically there is no inflation.)

Income Shrink
Then, the poor man on the street feels the most pain as his disposable income continues to shrink by the day.

When there is no inflation, employers will use that gauge as a benchmark for increment. So he gets a 3% pay increase and that may help protect his lifestyle.

Wrong. With prices of goods going up, the real inflation is higher than 3%. If you don’t believe, watch how drinks will go up by 10% at the very least. Then food will go up by 20%.

Why is this so?

Street Economics
If a cup of coffee is RM1, it will surely go up to RM1.10 to RM1.30. That’s 10% to 30%. It surely will not be RM1.03 per inflationary rate but sugar rate of at least 10%.

A bowl of noodles being RM4 will become RM4.50 to RM5.00. That’s 10% to 25%.

The reason is simple. It’s the perceived tolerance of price hike that determines the new pricing level. It has nothing to do with the Govenment’s published information about inflation. It’s what sellers can convince buyers how their cost of raw materials have gone up so they have to increase a little bit (read a lot more than justifiable).

Moreover, price hike in sugar, flour, petrol, LPG and diesel will cause a rippling effect in price increases across food items. That’s the real inflation effects on Malaysians.

More to come
The Government has to wait to remove more subsidy to RON 95 until after the General Election. Just as the GST has to be KIV until the same time too. With GST, you who have not been paying taxes will start to pay when you buy foods and goods outside the protected list.

Now house ownership has become a real problem as the property market has gone so high such that the young Malaysian adults can no longer afford to buy them. They can barely afford to own a car, pay for food and rental. So, who says Malaysia has no inflation? Only Najib says we are OK.

Only if he asked us, we can tell him that it’s really the opposite. We are suffering because our money buys less things as time goes by, thanks to the Government efforts of removing subsidies but not removing corruption.

Call to action
It is time for the Government to step up to tell all of us middle and lower income group Malaysians how we are going to see improvements in the days ahead.

Auto-piloting and sugarcoating the economy just won’t do. Mr Prime Minister, please get new economic advisors or listen to the good ones who are in touch with reality.

No more PR please! Right now, Malaysians are bracing for another increase in foods and drinks prices because of the sugar price hike today to RM2.30, at almost 10%.

And this is a total of 58.6% increase since January 1, 2010, then at RM1.65 per kilo.


2 Comments to “Sugar Price Up 20 sen, Food and Drinks Will Also Go Up”

  1. Now you have the chance to tell your children … “those were the days when kopi-ping was just RM1.50” 😛

  2. Noodles are already RM4.30
    He knows, but he is prioritising …. his and his friends’ pocket (who are we to him??
    we’re his oranges he will squeezeeeeeeee with all his might to get every drop out!!)

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