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Wednesday, October 24, 2007

General Erection

The rumours about general election is getting hotter and hotter nowadays.But before the general election,here comes the general erection.

The price of everything is going up,not going down


Price of Nestle products on the hike.


Just only by this year,the price of Nestle products such as Milo and other dairy products such as milk powder had rised a few times,each time 5% to 8%.Although these stuff are not price-controlled items by the government,but they're important daily needs for nearly all the people of Malaysia.

Will you stop going to mamak stall although the price of the drink are raising higher and higher?

The price hike on dairy products and nestle products will eventually cause a chain reaction in the country.The price for Milo Ais,Nescafe Ais,Teh Tarik which are a must for Mamak-lovers will increase as well.


Imagine 1 day when teh tarik reaches RM2 per cup.

Even that day when I bought myself a packet of Milo Ais,the price actually hit RM2! Half year ago,it was just RM1.80,and now you see the difference.




On Sept 15, the price of enriched wheat flour went up from RM1.70 to RM1.80 per kilo to RM2 to RM2.10.This will cause another super-erection-chain-reaction.Enrinched wheat flour is used to make breads,buns,yellow noddles,thosai and beehoon,it is not an price-controlled item,unlike the plain what flour which is used to make kuih and roti canai is an controlled item.


I told my friend that day,eat bread when we're finacially tight.But now eat bread also expensive laa.

So,this means that the food that we are eating daily,ranging from sandwich to breads,from hokkien mee to curry mee,and from thosai to chapati,will face a rise in the price anytime from now.

According to some economy observer,the price hike for all daily utilities and products for this year had reached about 10% averagely;and please bear in mind that 2007 has not ended yet,meaning the percentage may goes higher than expected.



So,just get ready to be "erected".




Although there's still no official announcement by the government,but it is expected that several highways and expressways in the Klang Valley including North-South Expressway will raise the toll fare,according to the concessions and contracts signed.



On the other hand,as the international oil price hit USD90 per barrel,it's just the matter of time when will the government to decrease the heavy subsidy on the petrol price,and raise the price for petrol.

When the toll hike and petrol hike comes together,this is what I call a super-massive-erection-chain reaction where almost all the price of the goods we are using will be affected.Because logistics and transport company needs petrol or diesel to run their truck and lorries on highways and expressways,to ensure that goods and products are sent nationwide.

Nearly everything and goods produced need logistics and transport company to deliver their goods,including food products and so on.So,when the petrol price and toll are raised,it means that the cost will raised as well.So,where will these additional cost goes to? To the consumer and people,like us.Retailers will increase their prices as the middleman/distributors have increased theirs, taking the cue from the manufacturers and factories,hence this is the so called chain-reactions.

So,at that time,it's not surprise to see goods and products price rising high,and inflation going worst.

Still haven't feel the "heatwave" of the general erection? Visit to your nearby mamak stalls,kopitiams,warungs or talk to some daddy and mummy who have 3 kids at home.You'll know how and why.

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