Government is always right....& "CLEVER"

After the changing of new finance minister and coming prime minister, I found that our government has been very good in calculating and packaging their income.

Announcement of 8% EPF contribution

Upon the announcement, it has been a general view for the EPF contributors to have an option to contribute 8% instead of 11% of current contribution rate in order to allowed more spendable income in public wallet.

However， the actual fact is that EPF has been mandatory reduced to 8% but provided that contributors can select for 11%.


nonetheless, the 3% of reduction is still yet to be announced or declared by the kind government as non-taxable income.

If the said 3% is remain as taxable income, it doesn't seem to be benefit much to the public as it has not only increase the income tax payable for all individual but also has reduce the retirement fund for employee.


under the 11%,
the 3% is in the government account as EPF contribution but owned by contributors which claimable by the respective contributors.


under the 8 %, the 3% is in the contributors wallet but lead to higher tax payable which receivable by the government as tax.

CONCLUSION: it seem like it will be more benefit to the government financial and treasury instead of the public wallet.


Petrol retail price

Reason of why the nation price hike to RM 2.70/liter is mainly due to the price increase of international oil price which record touch the point of USD 140 per barrel.


However, with current WTI crude oil price down to the point which below USD 50 per barrel, why the nation petrol price still stall at rm2 per liter?


First, the government has stating that, the strengthen of USD has affect the government ability to reduce the price.

I do agree that current USD value has been strengthen, but we should look back to the time that price being increase; Are the USD strong when the price up to RM2.70?

it has been a normal situation that the USD value and WTI price has going adverse,
weak USD will lead to strong speculation condition on the oil price;
strong USD will stop and reduce speculator ability to take on the WTI.

second, the government has take worry on petrol storage and potential losses by petrol station owner as reason of not able to reduce the price.

As such, I do agree on the petrol storage worry but the government has take action by penanlty on any petrol station which has not sufficient petrol storage, so it should not be an issue anymore.

meanwhile, the potential losses by petrol station should be offset by the potential profit taken during the price hike which has gone up from 1.9 to 2.7 per liter.


CONCLUSION: the government has increase the petrol price with solely blame on the WTI crude oil price,but has gave plenty of excuses in order to not reduce the price for the benefit of public.

nonetheless, the governement has record profit instead of subsidise the petrol price due to the down trend of internationl petrol price lately.