power-hike-means-keep-your-eye-on-inflation-in-malaysia

Power hike means keep your eye on inflation in Malaysia

The price of power is about to go up in Malaysia. Malaysians can expect to see their rates rise by an average of 12% as of June 1.

By Lara Wozniak

May 25, 2006

Tenaga Nasional, Malaysia's national electricity company, won government approval on Wednesday May 24 to hike its electricity prices û by an average of 12% as of June 1- due to the rising price of fuel.

In February, Prime Minister Abdullah Ahmad Badawi increased fuel prices, and planned an increase electricity bills. Just like in Indonesia, this had the ripple effect of triggering street protests.

ôThe governmentÆs caution reflects the unpopularity of the March fuel price hike, which probably contributed to the losses suffered by the ruling UMNO party in the Sarawak state assembly elections over the weekend,ö says ING analyst Tim Condon.

But with those elections over, now is the time to up the price,...

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Southeast Asia