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Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on hike in prices of petrol, bus services and others. 3 October 2000

Now the Malaysian Government allows the increase in price of goods, starting with petrol and bus services disguised as zoning. This is inflation. When Parliament meets on 16 October 2000 for the Budget Session, I shall propose a motion:

That this House will discuss factors causing inflation in this country especially after the international crude oil price going from US$12 to US$38 a barrel and the Cabinet decision to allow increase in the pump price of petrol. This House will also debate the actual state of inflation and the ways to overcome it.

On 29 September 2000, the Finance Ministry announced the increase in the price of petrol by 10 sen, RM1.20 a litre, from 1 October 2000 in Peninsular Malaysia. In Sabah and Sarawak, the price is RM1.18 and RM1.19 respectively. Diesel price increases by five sen to 70.1 sen a litre while that of liquefied petroleum gas, LPG, is up 10 sen to RM1.28 a kilogramme.

The Government insists that it subsidizes petrol RM3.1 billion this year. However, the people are shocked as they are still suffering from the economic crisis. Further, the increase in petrol price will stimulate the rise in the price of other goods, beginning with the cost of transport.

On 1 October 2000, the Minister for Entrepreneur Development Datuk Nazri announced the zoing of Kuala Lumpur into four areas with each area having a different bus fare. For example Zone 1, Jalan Ipoh, bus fare is 70 sen air-conditioned and 60 non-aircon; Zone 4 Kepong RM2 aircon and RM1.75 non-aircon. Previously, going from one zone to another, we pay the bus fare 90 sen. But now it is RM1.20 to RM2.00. This pricing according to the zones is a disguise for fare increase. Passengers cry foul.

The Government has promised to improve the mechanism for monitoring prices of goods. It has warned business people against unfair price hike, saying that the increase in petrol price is less than 10%. On the other hand, the Minister for Entrepreneur Development sanctions the zoning increase in bus fares. Hence, we are afraid that the Government will go on sanctioning increase in tariff of other services.

As expected, workers are demanding for wage increase. What are they going to do? There is inflation that pushes up the cost of living.

Taking heed of the burden on the people, I shall propose a motion on inflation in the budget session of Parliament. I hope that the Government will permit its Members of Parliament to support the motion.

Dr Tan Seng Giaw