QUOTE(Aldo-Kirosu @ Nov 6 2022, 08:27 AM)
I know increase opr is a tool to control inflation, but at Malaysia it's situation is very special. RM devalue further is not the issued ready care by majority of the citizen, but living cost is.
Example, a plate of chicken rice. Before MCO opr rate is 3.25 per pax is around Rm6
During MCO it rise to Rm 6.5, during the time opr rate is 1.75
and post MCO it rise to Rm 7, opr increase at 2.75
Why this happen? Refer to cooking oil price and raw chicken price. Because government setting the maximum price and reduce the chicken farm subsidies. So the chicken farm have a small period have shortage issues. Then government start to restrict export chicken to Singapore. But the real issue is, if sell to Singapore the chicken farm can still get profile dur to currency but sell to local is rugi money.
Chicken rice, coffee, sugar etc is the thing Malaysian eat a lot, it ready affected Thier living. So from this situation you can see. The increasing of opr was increasing the people burden. And I believe chicken rice will never drop to below rm7 anymore. (For example scenario, I believe some seller want to do clarity or certain rural area still sell cheaper price).
Chicken feed, sugar, coffee, fertilizer, etc, over half of food stuffs are imported. Devalued RM and rise in minimum wages has caused production cost to gone up. If selling price is not profitable, it is natural for producer to reduce production.Example, a plate of chicken rice. Before MCO opr rate is 3.25 per pax is around Rm6
During MCO it rise to Rm 6.5, during the time opr rate is 1.75
and post MCO it rise to Rm 7, opr increase at 2.75
Why this happen? Refer to cooking oil price and raw chicken price. Because government setting the maximum price and reduce the chicken farm subsidies. So the chicken farm have a small period have shortage issues. Then government start to restrict export chicken to Singapore. But the real issue is, if sell to Singapore the chicken farm can still get profile dur to currency but sell to local is rugi money.
Chicken rice, coffee, sugar etc is the thing Malaysian eat a lot, it ready affected Thier living. So from this situation you can see. The increasing of opr was increasing the people burden. And I believe chicken rice will never drop to below rm7 anymore. (For example scenario, I believe some seller want to do clarity or certain rural area still sell cheaper price).
Bnm opr rate rise is to tame inflation rate and strengthening RM else inflation could be out of control. Continue RM devaluation will cause inflation rate to rise further e.g turkey, Pakistan, Sri Lanka, etc.
Nov 6 2022, 08:40 AM

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