tag:blogger.com,1999:blog-6297413898275266606.post445121852039301397..comments2024-03-27T18:15:59.096+08:00Comments on Economics Malaysia: 1Q 2011 Government Debt Updatehishamhhttp://www.blogger.com/profile/06265308095732759923noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-6297413898275266606.post-54034381354437095452011-10-24T10:18:44.370+08:002011-10-24T10:18:44.370+08:00The APM is short for Automatic Pricing Mechanism. ...The APM is short for Automatic Pricing Mechanism. The suspension meant that we didn't have to endure RM3.50 petrol these last 6 months. Would you have preferred that instead?hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-12721483528883195992011-10-23T20:58:00.694+08:002011-10-23T20:58:00.694+08:00The APM was suspended in May, good grief, another ...The APM was suspended in May, good grief, another bunch of abbreviation, whatever it was, it was so typically short lived or as they used to say another injun bites the dust, but for its death, can't you hear the sound of the wet japanese slippers in the corridors of putrajaya who done it in? And wow, up sprout a demon called fossil fuel and due to its Involvement with The Negative Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-4722360473895869772011-10-19T08:52:27.630+08:002011-10-19T08:52:27.630+08:00The APM was suspended in May - the last adjustment...The APM was <a href="http://econsmalaysia.blogspot.com/2011/05/pause-in-subsidy-rationalisation.html" rel="nofollow">suspended in May</a> - the last adjustment was in <a href="http://thestar.com.my/news/story.asp?file=/2010/12/4/nation/7559474&sec=nation" rel="nofollow">December 2010</a>, when the average crude oil price was approximately around the same level as it is now.<br /><br />For thehishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-55516297264187371612011-10-18T18:27:58.205+08:002011-10-18T18:27:58.205+08:00Last time I heard, they'd rigged up a 'mec...Last time I heard, they'd rigged up a 'mechanism' whereby prices will go up or down along with world market prices, my contention is what happened to this arrangement. <br />Secondly, if you assume that 'subsidising' may cause some displacement of resources, do you reckon that taxing won't.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-46285945824678634492011-10-17T15:03:45.287+08:002011-10-17T15:03:45.287+08:00Crude oil prices are a function of global economic...Crude oil prices are a function of global economic growth, particularly in China and India (rising oil intensity) and reducing supply. Right now, growth is softening in both countries, but if it picks up again (as is likely to happen next year), so will oil prices.<br /><br />Reducing pump prices now would require the government to borrow more (or equivalently, cut spending on other services). hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-83960928457139187802011-10-17T11:56:40.789+08:002011-10-17T11:56:40.789+08:00ANOTHER THING, WORLD CRUDE OIL PRICES HAS PLUNGED ...ANOTHER THING, WORLD CRUDE OIL PRICES HAS PLUNGED I THINK SINCE ABOUT 3 MONTHS AGO, AND CHINA HAS REDUCED PUMP PRICES A FEW DAYS AGO. HOW COME WE DO NOT HEAR ANYTHING IN THIS COUNTRY, 'SLEEPING' ON THE JOB?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-66428067677993672732011-10-12T23:49:07.969+08:002011-10-12T23:49:07.969+08:00it's sad, i think malaysia will be like the US...it's sad, i think malaysia will be like the US soonprice in malaysiahttp://www.ipriceinmalaysia.com/noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-9125502081525554522011-10-12T21:53:20.434+08:002011-10-12T21:53:20.434+08:00There are two essential problem with oil and gas s...There are two essential problem with oil and gas subsidies in my thinking. First is that the negative externalities (pollution, smog, etc etc) are not captured in the market price - and subsidies make it even worse by encouraging their use.<br /><br />Second is that I think high prices of oil and gas are here to stay, and should go up even more as time goes by. That means the subsidies as they hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-856758736611317232011-10-12T16:25:45.823+08:002011-10-12T16:25:45.823+08:00Corps/Industries enjoy 70% of the gas/electricity ...Corps/Industries enjoy 70% of the gas/electricity subsidy n probably as much on some other items.The products n services from these enterprises are not exclusively for local consumption.Of cos arguement myb on employment and taxes.<br />Is this sustainable? i.e giving subsidies to industries (n taxbreaks) to create employment n whatever multiplier.<br /><br />Thus if subsidy is withdrawned there Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-30892762656878799012011-10-12T09:18:32.088+08:002011-10-12T09:18:32.088+08:00It depends on your point of view. And since money ...It depends on your point of view. And since money is fungible, its hard to say which portion of the budget the deficit is financing.<br /><br />For example, spending on primary and secondary education takes a hefty chunk of the budget - schooling is now effectively free up to secondary level. Is this expenditure or investment? The budget treats it as spending, but Pemandu lumps it under subsidieshishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-55124397723079460522011-10-11T22:38:39.135+08:002011-10-11T22:38:39.135+08:00Debt is ok if ur using it for positive things that...Debt is ok if ur using it for positive things that can grow the economy.Its bad if its used for non productive things n to top up leakages.<br /><br />So..where do we stand in this regard?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-34104606124487861932011-10-10T17:07:35.349+08:002011-10-10T17:07:35.349+08:00Actually, if you go back far enough (say 1970), it...Actually, if you go back far enough (say 1970), it looks like an exponential curve - but then most economic time series look like that.<br /><br />I wouldn't be too alarmist about the level of debt as it stands. Even assuming government debt reaches RM1 trillion by 2020, that should still be alright, as at that point nominal GDP should be in the region of RM2 trillion - the ratio will have hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-85411504452599011472011-10-10T16:03:31.993+08:002011-10-10T16:03:31.993+08:00Looks like our Federal Government's debt is go...Looks like our Federal Government's debt is going up linearly. It'll reach close to 1 trillion debt by 2020. Our country is actually developing through debt and this shows we are in tandem with 1st world countries out there; i.e US & EU. Doesn't look healthy at all. We are halfway towards a meltdown. Where should we turn to for rescue package? Do we just go bankrupt like Greece?Anonymousnoreply@blogger.com