a Malaysia for Malaysians

Crude oil prices tumbled Monday as demand concerns climbed and a tropical storm looked set to miss energy installations in the Gulf of Mexico. Prices slumped below 120 dollars a barrel in New York and London for the first time in three months. Forecast showing crude oil price may touch US$110/barrel within this week. It may remain around US$100/barrel probably until Oct 2008.

Back at home, BN Government still mulling to take any price reduction exercise giving excuses this and that. DSAI had already indicate he may reduce RM0.70/litre based on US$125/barrel. World Oil price seem to be favouring him too. If his plan to Putrajaya succeeds we may anticipate oil price reduction up to RM 0.90/litre should our forecast of US$110-US$100/barrel become reality by then.

Current ruling Government may announce oil price reduction during Permatang Pauh by election to pleased it’s already eroding supporter heart. The act to increase price without much analysis by Prime Minister despite earlier promise no increase until Aug 2008 show Barisal Nationals intention to PUNISH voters.

Should PM Badawi had kept his pre election promise until today, we could seen price increase around RM2.20/litre (instead RM 2.70/litre) based on 2008 average price of US$109.30.

Souce : OPEC

Malaysian Economic which mainly driven by private spending could have sailed smoothly with some government special assistance. Instead of channeling public spending into Petrol primarily, we could had given opportunity to other consumer needs as well. His unplanned action resulted increase in Rice prices and other basic necessity.

Based on our analysis we had very strong feeling that SUGAR will face same fate as rice soon. As festive seasons approaching demand for sugar is expected to rise when Cane sugar become prime material for ethanol production. We still puzzle why Government allow Richest Malaysians to control countries sugar supply. Why cann’t they  allow others to import sugar and commodities to meet countries requirement and stabilize price.

Ruling BN government dominated by UMNO focusing attention towards their party’s election and ways to block Anwar Ibrahim seize power. Our earlier posting on Cracks in Umno and Malaysiakini posting  on ACA report by Umno member itself suffice to proof this. Government machineries seems to incline with them letting country economic cruising in autogear without pilots in attendance.

It’s Now or Never.