Pay hike - minimum impact on inflation rate
Yoges PalaniappanPublished: Jun 28, 2007 11:10 AM | Updated: Jan 29, 2008 10:21 AM
The hefty pay hike for civil servants is expected to have minimum impact on the country's inflation rate, the Dewan Rakyat was told today.
The hefty pay hike for civil servants is expected to have minimum impact on the country's inflation rate, the Dewan Rakyat was told today.
"The pay rise will come to effect only in July and its impact on the inflation cannot be measured yet," said parliamentary secretary to the Finance Ministry Hilmi Yahya.
"However, the country does not face any capacity problem now. Thus, we believe that the impact will be very low," he added.
The inflation rate will remain at two to 2.5 percent, he said, adding that the inflation rate for the first five months of the year was at 2.2 percent.
Hilmi (BN-Balik Pulau) was responding to Jawah Anak Gerang (BN-Lubok Antu) who wanted the finance minister to state the nation's inflation rate following the pay rise for civil servants.
In May, the government announced that its civil servants, the police and armed forces will get a pay raise of between 7.5 percent and 35 percent. This is in addition to an increase in their cost-of-living-allowance (Cola) of 100 percent.
Meanwhile, Hilmi said the government will take proactive measures to monitor and control price hikes in restaurants and business premises.
"The government has taken action against errant shop owners. We also urge the public to spend wisely according to their needs," he added.
Hilmi also explained that the food and beverages category is the main contributor to the inflation rate, followed by housing and transportation.
F1 expenditure
In another development, the government spent RM130.5 million to host the Formula One (F1) Grand Prix this year.
Deputy Transport Minister Liow Tiong Lai said the money was used to pay the "rights fee" to F1 Management Ltd. He also provided the figures for the previous years.
Liow (BN-Bentong) was replying to Kamarudin Jaffar (PAS-Tumpat) who asked the prime minister to state the cost borne by the government to host the recent F1 Grand Prix Malaysia-Petronas.
The deputy minister also explained that the government has approved RM19.6 million to upgrade the infrastructures at the Sepang Circuit.
On the suggestion to hold the F1 race at night, Liow said: "It is still in the planning stages and will require consent from the relevant authorities and racers before it can be implemented."
He also assured that Singapore hosting a F1 race would not be a threat to Malaysia.
"In Malaysia, the race is held in the beginning of the season. Whereas, in Singapore it will be held towards the end of the season. Malaysia and Singapore can work together to promote the sport without affecting each other," he said.
Liow said the F1 race has also boosted the country's tourism industry. "This year, we received 115,000 spectators, and 30 percent of them are international tourists."
"The pay rise will come to effect only in July and its impact on the inflation cannot be measured yet," said parliamentary secretary to the Finance Ministry Hilmi Yahya. "However, the country does not face any capacity problem now. Thus, we believe that the impact will be very low," he added.
The inflation rate will remain at two to 2.5 percent, he said, adding that the inflation rate for the first five months of the year was at 2.2 percent.
Hilmi (BN-Balik Pulau) was responding to Jawah Anak Gerang (BN-Lubok Antu) who wanted the finance minister to state the nation's inflation rate following the pay rise for civil servants.
In May, the government announced that its civil servants, the police and armed forces will get a pay raise of between 7.5 percent and 35 percent. This is in addition to an increase in their cost-of-living-allowance (Cola) of 100 percent.
Meanwhile, Hilmi said the government will take proactive measures to monitor and control price hikes in restaurants and business premises.
"The government has taken action against errant shop owners. We also urge the public to spend wisely according to their needs," he added.
Hilmi also explained that the food and beverages category is the main contributor to the inflation rate, followed by housing and transportation.
F1 expenditure
In another development, the government spent RM130.5 million to host the Formula One (F1) Grand Prix this year.
Deputy Transport Minister Liow Tiong Lai said the money was used to pay the "rights fee" to F1 Management Ltd. He also provided the figures for the previous years. Liow (BN-Bentong) was replying to Kamarudin Jaffar (PAS-Tumpat) who asked the prime minister to state the cost borne by the government to host the recent F1 Grand Prix Malaysia-Petronas.
The deputy minister also explained that the government has approved RM19.6 million to upgrade the infrastructures at the Sepang Circuit.
On the suggestion to hold the F1 race at night, Liow said: "It is still in the planning stages and will require consent from the relevant authorities and racers before it can be implemented."
He also assured that Singapore hosting a F1 race would not be a threat to Malaysia.
"In Malaysia, the race is held in the beginning of the season. Whereas, in Singapore it will be held towards the end of the season. Malaysia and Singapore can work together to promote the sport without affecting each other," he said.
Liow said the F1 race has also boosted the country's tourism industry. "This year, we received 115,000 spectators, and 30 percent of them are international tourists."
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