Malaysia to raise fuel and food prices again - 4/12/2010 (Sat)

Malaysia is set to announce on Friday reductions to its fuel and food subsidies, as it tries to reduce its fiscal deficit, website Malaysiakini (www.malaysiakini.com) said.

The government will raise the prices of the RON95 blend, diesel and liquified petroleum gas by 5 sen a litre, the website citing a special briefing for editors at Putrajaya said.

The website also added that the price of sugar will be raised by 20 sen to 2.10 Malaysian ringgit per kilogramme.

The prices will be effective Saturday at 12.01 am.

Think-tank Pemandu is expected to come out with a formal announcement later this evening.

Malaysia's government earlier this year cut subsidies on the benchmark RON95 blend, although it baulked at the wide-ranging reforms recommended by a government thinktank, fearing a voter backlash.

The government recently hiked the price of RON97 by 7 percent as it is subject to a managed float while RON95 remains subsidised by the government.

In October, the government said its subsidy spend would be 24.9 billion ringgit in 2011 up from a planned 23.7 billion ringgit in 2010.

Hike in RON97 price

KUALA LUMPUR: Malaysia is to increase the price of the RON97 petrol blend by 15 sen to RM2.30 per litre from Dec. 1, two sources familiar with the plans told Reuters.

A formal announcement will be made later on Tuesday, one of the sources said. - REUTERS

Malaysia's government earlier this year cut subsidies on the benchmark RON95 blend, although it baulked at the wide-ranging reforms recommended by a government thinktank, fearing a voter backlash.

The government does not subsidise RON97, which is a higher octane fuel compared to the RON95.

In October, the government said its subsidy spend would be 24.9 billion ringgit in 2011 up from a planned 23.7 billion ringgit in 2010.

Malaysian inflation edged up to 2.0 percent year-on-year in October, and housing, water, electricity and fuel rose 1.4 percent from a year ago. Those items account for 21.4 percent of the CPI basket.

Apple’s iPad on sale in Malaysia from today

KUALA LUMPUR: After months of waiting, the iPad will be sold at selected stores in Malaysia today at a rate that is said to be one of the cheapest in the world.

The official price list provided to The Star by authorised reseller Machines, via Apple, showed iPads in US stores going at RM1,573.10 to RM2,613.42 (US$499 to US$829).

The price range for the iPads in Malaysia is RM1,549 to RM2,599.

Long queues are expected at all Apple premium reseller stores in major shopping malls in the country.

Machines director Andrew Cheng said the “lifestyle changing” device was expected to sell like hot cakes, along with the wide range of accessories available for the iPad.

“The iPad had been sold in small-time booths at IT centres over the past few months – mostly brought in from overseas.

“Now, consumers can buy the iPads at official Apple-commissioned stores,” Cheng said.

“By doing so, users can enjoy better customer service and warranties by Apple Malaysia, making their buy a much safer and assured experience.”Cheng said the light and portable device had been significant in changing the way he worked as well as his entertainment experience.

“I can easily do an impressive business presentation with this device. When I go for short working trips, my laptop, which I used to lug around, is now left at the office. I just take my iPad out,” he said.

Telcos in the country will also begin to roll out various dedicated data plans for iPad with Wi-Fi + 3G with the launch of the iPad.

DiGi, Maxis and Celcom have introduced the micro SIM card, made 52% smaller for both the iPhone 4 and the iPad.

With a 3G connection, users can browse the Web, read and send e-mail, and enjoy and share photos from anywhere in the country with network coverage.

The official price list for the iPad with Wi-Fi only is RM1,549 (16GB); RM1,849 (32GB); RM2,149 (64GB); iPad with Wi-Fi + 3G RM1,999 (16GB); RM2,299 (32GB) and RM2,599 (64GB).

Maxis Bhd said it was offering data plans for iPad with Wi-Fi + 3G in Malaysia from today.

All data plans would be available without a contract and users would have the freedom to activate or cancel a plan at any time, the company said in a statement here yesterday.

“The plans are designed to enable Maxis customers to enjoy more Internet connectivity and the growing number of applications for the rich interface in a more affordable way,” Maxis chief operating officer Jean-Pascal van Overbeke said.

The iPad with Wi-Fi + 3G models is 1.27cm thick and weighs just 0.726kg. It has a single-charge battery life of 10 hours for surfing the Web on Wi-Fi, watching videos or listening to music and up to nine hours of surfing the Web using a 3G data network.

New law to end illegal downloading of music and movies

KUALA LUMPUR: The free-and-easy days of illegal downloading of music and movies may soon be over. A proposed new law will enable Internet Service Providers (ISP) to suspend or terminate the Internet accounts of P2P (peer-to-peer) users.

This new law called the ISP Liability act, will be tabled in Parliament next month, according to Recording Industry Association of Malaysia (RIM) chairman Norman Halim.

RIM has been lobbying the Government for an ISP Liability act for the past 5 years as illegal online downloads have been cannibalising the legitimate sales of music, worldwide.

“The act makes the ISPs responsible for curbing online piracy. The ISPs will be fined if they don’t take action against illegal downloaders. The ISPs have the technology to track P2P users,” said Norman.

However, he said that the fine amount had yet to be determined.

ISPs will send two warning letters to illegal downloaders. Should the downloaders still persist, the Internet access will be suspended or even terminated.

“Other countries that have such an act have seen their respective music industries recover. One good example would be South Korea,” he said.

RON 97 price up 5 sen; reflects global petrol market price

KUALA LUMPUR: The price of RON 97 is up 5 sen to RM2.15 per litre from Tuesday and reflects the price of petrol in the global market, said Deputy Domestic Trade, Co-operative and Consumerism Minister Datuk Rohani Abdul Karim.

The price of the more widely used RON 95 remains at RM1.85 per litre.

"It was announced on July 16 that the price of Ron 97 will be subjected to a managed float,'' she said this in her reply to Dr Dzulkefly Ahmad (PAS - Kuala Selangor) during Question Time.

Dr Zulkefly had asked whether the enforcement division of the ministry monitored the price increase of essential goods in his original question.

Before asking the supplementary question, Dr Dzulkefly also said that the increase of price for RON 97 - five sen per litre - would create an impact on people.

"Those who use the petrol will feel the impact,'' he said.

Rohani said the price would be determined by the world market and announcements would not be made in the future about price changes.

"When the price declines, please also raise the matter and express your gratitude,'' she told Dr Dzulkefly.

It was reported on July 16 that the government had decided to withdraw the petrol subsidy for RON 97 and subject it to a managed float.

Price of RON 97 would be determined by an automatic pricing mechanism.

RON 97 price hike hits high-end users

PETALING JAYA: The five-sen hike of RON 97 petrol to RM2.15 per litre from 2 November 2010 has mostly affected a small group of luxury car owners and those who favour its performance capabilities compared to the more affordable RON 95 which is still sold at RM1.85 per litre.

Animation designer Joey Khor, 32, who drives a 3.5-litre Nissan Fairlady sports car, said he might have to sell his car if the petrol cost becomes too hard to bear.

“I am already spending RM150 for a full tank, which will last me around three to four days. That means RM300 in a week, and RM1,200 spent on petrol in a month,” he added.

Car mechanic Novie Ismail, 34, said he spends about RM400 a month on petrol for his three cars: Volvo 24 SE, Proton Satria and Charade Aura.

“I’ll just have to bear with the RON 97 price hike as I feel that RON 95 affects the performance of my cars. The engines sound rougher and generate less power,” he said.

Meanwhile, Petrol Dealers Association Malaysia president Datuk Hashim Othman said the price increase was a natural consequence of rising oil prices in the international market.

He estimated that about 75% to 80% of motorists were RON 95 users and would thus remain unaffected.

“Don’t be too upset by the controlled float (of RON 97), as the Government plays an important role in ensuring that the oil companies do not hike petrol prices drastically,” said Hashim, pointing out that RON 97 sells for around RM3.80 per litre in Thailand.

“The public should be aware that the Government does not impose any tax on the sale of RON 97 but does not subsidise it either,” he said.

The previous petrol price hike, which took effect on July 16, was part of the Government’s effort to save an estimated RM750 million a year.

Deputy Domestic Trade, Co-operatives and Consumerism Minister Datuk Rohani Abdul Karim told the Dewan Rakyat that the price increase reflected the global price increase of fuel and announcements would not be made in the future about price changes.

She added that a committee comprising officials from the Finance Ministry and her ministry would monitor and determine the price since RON 97 was subjected to a managed float.