RON95 price cut: One of government's best initiatives, says expert
He said the reduction in petrol price removes a common excuse used by businesses to justify price hikes.
"I foresee prices of goods and services coming down as transportation costs decline. The next question now is whether businesses will pass these savings on to consumers," he told Business Times.
Harjit also welcomed the decision to charge non-Malaysians the unsubsidised market price for petrol, noting that this would help stabilise government cash flow.
On the toll freeze on 10 major highways and the government's RM500 million compensation to concessionaires, Harjit acknowledged the strain it could place on public finances but stressed the importance of prioritising the people's immediate needs.
"Toll charges are part of the cost of doing business. Any increase would raise logistics and retail prices.
"We can't get the best of everything . I believe the government is looking at what's important as of now," he said.
He advised pausing new infrastructure developments temporarily to focus on safeguarding livelihoods of the B40 and M40 income groups.
"This toll freeze should be seen as a proactive move in assisting those in needs in general.
"To curb long-term concession planning, proper costing and town planning is required and government should consider more privatisation and reducing government participation.
"But at the same time, it shoud consider enforcing price control to avoid profiteering and any form of indirect increase in the general business cost for business owners," he added.
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