Thursday June 5, 2008

Get ready for aftermath, Government warned

PETALING JAYA: The Government must face the consequences of the fuel price hike, warns Fomca.

Its adviser Prof Datuk Hamdan Adnan said these included more people using public transportation and a possible increase in the crime rate.

He also said current salaries did not commensurate with the rise in fuel, food and rice prices for many Malaysians.

“If not adjusted, the current income is definitely not enough for the average consumer. If people cannot cope, there might also be a rise in the crime rate,'' he said yesterday.

Consumers Association of Penang president S.M. Mohamed Idris said it supported the withdrawal of subsidies.

“The money can be better spent to help the poor,'' he said.

Malaysian Muslim Consumers Association executive secretary Datuk Nadzim Johan told Bernama the increase was beyond control and consumers should spend within their means.

He hoped the Government would have a mechanism in place to prevent an increase in price of food items.

In Kota Kinabalu, Consumers Association of Sabah president Datuk Patrick Sindu said the price of goods was expected to increase between 10% and 20%.

He said the RM625 rebate for owners of cars less than 2,000cc or pick-up trucks and jeeps of up to 2,500cc was unlikely to offset the impact of the fuel price hike.