Malaysia getting serious with cost saving

Today, a round of subsidy-reductions was announced in major dailies, The Star and The New Straits Times. This is rather gloomy news, offsetting the usual T.G.I.F. (Thank God It's Friday) mood as the weekend approaches.

As expected, subsidies on fuel have been reduced by RM0.05 per liter. RON 97 is now put into a state of "controlled float", whatever that is supposed to mean. But for now, it shares the same +5sen increase as RON 95 and Diesel. Furthermore, non-Malaysian cars (likely from Singapore and Thailand, where else) will not be allowed to purchase RON 95 petrol from 1st August 2010 onwards (read it here at The Star). Good luck with leaving it to the petrol stations to enforce this....

As of now, I have no confirmed reports on the pricing of Shell Vpower Racing (the only unsubsidized petrol sold at a premium).

Ah well, apart from that, we have reduction in subsidies also from LPG (the gas you use to cook) and sugar (for a healthier society?).

While this would appear indeed to have some impact on the cost of preparing and flavoring of food and drink, we should remember that the actual amount of sugar and gas used to prepare an average meal and drink would be quite a small amount, so the impact would be smaller than the smallest monetary denominator.

I welcome the reduction in sugar subsidies - hopefully, next time I order my coffee with no sugar, it really comes to me sans sugar!