MALAYSIAN MONETARY POLICY AS AT 24th NOVEMBER 2008

I welcome the move by Malaysian Central Bank i.e. Bank Negara Malaysia to reduce interest rates. Bank Negara Malaysia decided to reduce the Overnight Policy Rate by 25 basis points to 3.25% from the current 3.5% - Hence the ceiling rate now is 3.5% and floor rate is 3% respectively.Even at this current rate I still envisage a downward trend in interest rates.

Effective 1st December 2008, the Statutory Reserve Requirement (SRR) for banks will be reduced from 4% to 3.5% - Obviously Malaysian Banks would have more cash thus would be able to provide more opportunities for businesses and the Malaysian public.

MALAYSIAN GAS PRICES AS AT 18th NOVEMBER 2008

The Malaysian Government has reduced again the price of gas by 15 sen. Now

Ron 97 is RM2 per litre
Ron 92 is Rm1.90 per litre
Diesel is RM1.90 per litre

The trend of crude oil prices to keep on decreasing has prompted Pak Lah to initiate the move for a floor price of gas in Malaysia. Even at RM 2 per litre for the Ron 97 Malaysians are still being subsidized by 30 sen.

Although oil exporting nation like Malaysia is heading for a shrink in oil income, the Government should take that bold move to remove gas subsidies altogether in Malaysia.Maybe it would be hard to swallow (even for me to pay gas at RM3 per litre should world crude oil prices increase again). Nonetheless economic well being of young Malaysians must be considered too.The ceiling price is RM2.70 per litre for Ron 97.

I LOOK forward to the announcement of Malaysian Gas Floor Prices!!!