The Current Political and Economic Scenario
We are facing one of the worst economic situation in modern times where oil prices reached to a record high of more than USD140 per barrel. Many countries suffered badly from the sharp increase of the commodity. In the last 100 years the world has been depending on oil for almost everything, the moment we wake up in the morning, driving to work, watch TV and go to sleep with our air-conditioner on. Almost everything that is around us uses oil to function indirectly or not. Even the food on our table need a truck or airplanes to transport them to your local grocery shop. We might not imagine how we depend so much on oil.
We know that oil is going to be depleted very soon and now many countries started to come out with other kind of energy as an alternative to oil. However oil is still essential to some industries. Like any other countries in the world, we in Malaysia has been badly hit by the recent hike of oil price. The inflation rate for July alone was somewhere around 7% which is at a very alarming rate. This inflation is not caused by demand drive but purely by the high oil price. The central bank made a good move by not increasing the interest rate as business is still sluggish and more money in needed in the market in order to spur the economy back to the healthy track.
Some sources reported that the economic downturn in the US and about to be over and the situation should be back to normal in a few months time. While oil price started to come down to a level of USD125 per barrel which is a good news for manufacturer and businesses in the US. Hopefully this is a good news for Malaysians as we never stop hearing complaints from people of all aspects of lives due to the oil price. But during this short period of hardship we hope that Malaysians has learned to be more prudent and always be prepare for the worse to come in the future. What we can see from the recent hike is the usage of cars. Last time it will take me almost 1 hour from my house to get to the office, but since the recent hikes many opted to car pool thus reduce the number of traffic to almost 30%. Well we do have some positive impact from the hike. Traffic jams really can give you a lot of stress and not to say the release of carbon gas to the environment.
Talking about cars, the newspaper highlights was all about the Mercedes Cars bought for the top government officers in one of the state. One of the reason given was the maintenance for a cheaper national car, namely the Proton Perdana V6 is too costly compare to that of a Mercedes. One thing I know is that this subject should have not brought up at all. There are a lot of things that need to be taken care of and wasting time talking about buying the right car is totally not acceptable.
Hopefully things are solved about the car issues and people will start to get back to work and business again now.