MALAYSIAN GOVERNMENT TO ENSURE OIL PRICE INCREASE DOES NOT BURDEN CONSUMERS

KUALA LUMPUR, May 18 (Bernama) -- With a view not to burden the consumer,
the Malaysian government should carry out long-term planning involving in-depth
studies on petrol and oil price increases, several consumer associations said
today.

At the same time, the associations called on consumers to be prepared to
face the price increase by planning their monthly expenses, avoid using credit
cards to purchase goods and not waste.

Federation of Malaysian Consumers Association (Fomca) secretary-general
Muhammad Shaani Abdullah said consumers should not protest the petrol and oil
price increases because the time had come for the government to reduce fuel
subsidy and channel the allocation to more important sectors.

"Subsidy reduction for petrol and oil enables the government to channel the
subsidy to the health, education and housing sectors because the cost to be
borne by consumers are high for these sectors, especially in time of the current
rising prices of goods," he told Bernama Tuesday.

Muhammad Shaani was responding to Domestic Trade, Cooperative and
Consumerism Minister Ismail Sabri Yaakob's recent statement that the
people had to be receptive of increases in petrol and oil prices, expected to
happen anytime soon.

Ismail Sabri had said that steps must be taken as the government had to
bear the burden of paying high subsidy, following the increase in crude oil
prices in the current world market.

Muhammad Shaani said the people should not blame the government if the price
of petrol and oil was increased since the government had to bear with the big
subsidy payment of the current crude oil price increase.

"Among the alternative choices for the consumers are to use public
transport to-and-fro office and refrain from using private vehicles too often.

Malaysian Muslim Consumers Association secretary-general Dr Maamor
Osman said the government had to carry out detailed studies if it decided
to increase petrol and oil prices so that the rate of the increase would not
burden the consumers.

"The government, consumers and businessmen have to cooperate on this issue
of petrol and oil price increase by creating a 'win-win' situation for all as
the increase in prices of essential goods is in accordance with the current
world market," he said.

Dr Maamor said the goverment also had to improve on the public transport
system which was still inadequate, going by the irregular bus schedules and
the congestion in the LRT services during peak periods.

In addition, he said, the government also had to find alternatives to the
use of petrol in vehicles by developing vehicles using solar energy, electricity
and renewable source of power.