More bad news looming

Published: Thursday October 10, 2013 MYT 12:00:00 AM 

Updated: Thursday October 10, 2013 MYT 11:40:39 PM

BY STEPHEN THEN

OVER the past few days alone, I have heard about the plight of another three families in Miri who are asking for help because they are facing extreme financial difficulties.

These are all needy people, people who are poor and who have little savings.

They are desperately seeking financial assistance from kind-hearted donors and from welfare authorities because they are struggling to cope, living hand to mouth everyday.

I have just spoken to Miri Welfare Department head Goh Yong Kiet about their plight.

Goh is a very understanding person, always willing to listen and offer advices and suggestions on what can be done to help these people.

He has proposed certain steps to take to look into the needs and perhaps try to secure financial aid for the latest needy families I met.

People have been hit very hard by financial difficulties arising from the current economic situation in the country.

The unfortunate thing is that there are some more bad news looming in the horizon.

Even as we, the ordinary citizens, are reeling from the multiplier effects of the price increase caused by the Government’s decision to reduce subsidy of fuel in September, we will have to brace ourselves to face even more difficult times before the year comes to an end.

I have just found out that the prices of certain electrical items have shot up and will be increased again from next month.

I am not sure if this is happening in Miri city only or if the increase in prices of electrical items are happening or about to happen in other parts of Sarawak and other parts of Malaysia.

Whatever it is, the prices of certain brand of electrical items here will be increased, perhaps by as much as RM100, starting next month, that was what I had been told.

Apart from the prices of electrical items, the prices of consumer products made from sugar and flour may see an imminent increase soon, perhaps next month.

This is because of the anticipated reduction of government subsidies for flour and sugar that may be proposed very soon — maybe later this month by Putrajaya.

This means that there is a possibility that the price of essential food items that we have for breakfast such as noodles and bread may see further increase.

Already, over the past month alone in Miri City, the prices of noodles had increased by up to 50 sen in certain eateries.

A glass of coffee had already been increased by 20 sen while certain coffeeshops had marked up the price of milk-flavoured drinks by as much as 50 sen.

Some of these eateries are also charging an extra 50 sen for pork dishes, while others have increased the price of certain chicken dishes by RM1.

Miri city is indeed living up to its reputation as the most expensive urban centre in Sarawak, if not in the country.

If that is still not bad enough for the people in the city, the Miri City Council is said to be preparing to impose an additional 2% increase in the assessment rate for house owners.

It is said that the council had already outlined a blueprint for this increase, which is expected to be enforced early next year.

The council is also planning to impose a mandatory de-sludging of septic tanks for every building and house in Miri city.

Each desludging operation may cost RM400 to RM500 for every building.

I spoke to some city councillors two days ago and was informed that another controversial decision may be made soon that may see parking fees in Miri city going up.

The city council may go ahead with its plans to privatise the management of parking bays in Miri. It wants to hand over the management of public parking system to a private company.

That may mean an imminent increase in parking fees for the city’s population of 350,000.

The things I mentioned above are just some of the looming bad news.

At the national level, it is said that the Government is going to try out the imposition of the Goods and Services Tax (GST).

It is said that the GST will be officially endorsed soon, maybe during the coming Budget 2014 that will be tabled in Parliament before end of this month.

If the GST is introduced and enforced, the charges for many types of goods and services are expected to be raised considerably.

Already the prices of steel products had shot up.

Imported steel items brought in from Peninsular Malaysia to Sarawak have cost more and this had already led to an increase in the costs of construction charges in housing estates and commercial areas throughout Sarawak.

Housing developers had said they had no choice but to raise the price of newly built units.

At the national-level too, there are talks that certain major companies are carrying out downsizing exercises.

They are reducing the number of staff as part of measures to contain rising overhead expenditures.

To reduce spending on the payment of salaried workers every month, they are looking at automation, and are therefore offering certain categories of employees voluntary separation schemes.

Those employees willing to leave are offered compensation packages.

This downsizing exercise may affect a considerable percentage of workers, thereby increasing the overall unemployment rate, at least for the short-term.

Some of these companies operating at the national level have branches in Sarawak too, so Sarawakians will also be affected.

It is not very clear how many companies in Sarawak are going to opt for retrenchment or voluntary separation schemes. But it is a fact that there are many that are not registering the profit margin they had hoped for and may go for downsizing as a last resort to stay afloat.

So folk, looks like the remaining months of this year may see more misery and difficulties.

There are at least half a dozen types of bad economic and financial news coming and they may hit us smack in the face and burn whatever is left in our pockets before we can say bye-bye to 2013.