Inflation hitting the poor hard

Since 2006, the Consumer Price Index (CPI) of Sarawak has risen from 104 percent to 113.8 percent, an increase of 9.8 percent over five years, or about two percentage points every year.

This figure increases to 13.8 percent (or 2.3 percent annually) if we include the base year of 2005 (see table below).

The latest available figures at the Department of Statistics Malaysia indicate that the index for food and non-alcoholic beverages and non-food products for the month of November 2010, compared with the same month in 2009, showed increases of 3.0 per cent and 1.4 per cent respectively.

For the period January to November 2010, the index for food and non-alcoholic beverages and non-food items increased by 2.4 percent and 1.3 percent respectively.

The 2.4 percent increase in the index for food and non-alcoholic beverages was the result of increases for food at home (+2.6 percent); food away from home (+2.2 percent) and coffee, tea, cocoa and non-alcoholic beverages (+1.0 percent).

Among the subgroups of food at home that showed significant increases during this period were sugar, jam, honey, chocolate and confectionery (+10.2 percent); vegetables (+ 8.1 percent); meat (+ 2.9 percent ; fruits (+ 1.7 percent); fish and seafood (+ 1.6 percent) and bread, rice and other cereals (+ 0.9 percent).

Given significant petrol, diesel and LNG price increases in July 2010 and December 2010 (RON95 petrol now costs RM1.90 per litre, RON97 costs RM2.30, diesel costs RM1.80 per litre, LPG RM1.90 per kg and sugar costs RM2.10/kg), we can safely anticipate that the annual CPI for Sarawak will register another jump again for 2010 and into 2011.

A heavy burden for the poor

These price rises of nearly 10 percent for essential goods and services since 2006 (or 13.8 percent since 2005) may not mean much to rich people like Chief Minister Abdul Taib Mahmud and his BN cronies who have lots of money and do their shopping in Canada, Britain, California, Australia, Monaco, Singapore, Hong Kong and beyond.

But it's a heavy burden for the poor people of Sarawak, more so on the rural (mainly agricultural) population in the interior who pay substantially more for their petrol, cooking gas and other essential consumer items, such as food and clothing upriver, owing to high logistics and transportation costs.

As a result of these fuel price increases, restaurant and coffee-shop operators throughout the state have begun to increase their prices. In Sibu, people wanting their normal bowl or plate of noodles have to pay "between 30 and 50 sen more".

Market talk now has it that prices of beverages in coffee-shops, like coffee, tea and Milo, will also likely increase throughout Sarawak come mid-January.

We know that we live in the modern era where we cannot run away from inflation. But we certainly can control and manage it.

However, as of now, this BN state government, although given the mandate to control inflation and rising costs of essential goods and services, is doing little to alleviate the plight of rising costs for the poor people of Sarawak.

This BN state government was elected to serve the needs of the people of Sarawak. But instead of being prudent in the expenditure of public funds, it is squandering billions of ringgit in public funds on useless projects such as Bakun, Murum and a further dozen hydroelectric dams.

It is also stealing the NCR lands of native communities and giving out highly inflated contracts to companies linked to the chief minister's family.

At the national level, the BN government is wasting billions of ringgit on submarines, fighter jets and other mega-projects that do not benefit Sarawakians.

'BN stands for Barang Naik'

The time has come for the electorate of Sarawak to take a stand to reclaim their livelihood from the rapacious wastefulness of this BN government.

What is now clear is that this BN government does not stand for the rakyat. Instead, BN stands for Barang Naik. Hence any vote for BN only means a vote for ensuring "Barang Naik!!!"

Pakatan Rakyat pledges to reduce the CPI and the cost of living for all Sarawakians by being a more prudent government if elected by the people in the forthcoming state election. We pledge to cut out budgetary wastage and end cronyism in the state.

Once this happens, the money that we save from the budget, will be reallocated in the form of beneficial subsidies to the poor of the state.

This money rightfully belongs to the people and should thus be returned to the people to ensure that they live affordably and in dignity. The cost of living not only can be managed but must be done responsibly on behalf of the people of Sarawak.