The world is facing an economic stagnation and Southeast Asia is no exception. Oil and commodity price are roaring. What do Southeast Asian governments do?
Thailand and Indonesia are having quite a similar policy to help poor people by reserving some goods i.e. rice to sell to the poor cheaply. Indonesia is going to have rice-for-poor packages to sell and Thailand is having "blue-flag" project by reserving some goods to sell at the price lower than the market rate.
My first question is: who are the poors?
and my second question concerns economic perspective: Does this distort the market machanism?
Ps. Malaysia's PM announced that the oil price in Malaysia will not increase again for the rest of the year. I don't think it is possible.
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2 comments:
As I have read about the Blue Flag campaign, it has been rejected by the government. While the information I got from the National Bank's said that this Project does help the economical crisis esp. for the Poor as you have mentioned, because it does not impact the inflation.
Malaysians tend to think that Petronas's money should be used to subsidize the oil price.
They should really learn to use the public transport.
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