Saturday, September 02, 2006

Is malaysia a low wage high cost country?

Income tax for RM 35k is RM 1525

Annual Inflation 2006 Estimated 3.7%

Saudi Arabia net exporter of crude oil, petrol RM 0.60 per litre and diesel RM 0.25 per litre with no income tax for their citizens. King Abdullah decrees to reduce the burden of their people by cutting the price of petrol and diesel.

1 barrel (42 gal) of crude oil is USD 70 as off 1 Sept 2006. Crude oil is USD 1.66 per gallon or RM 1.58 per litre. (1 gal = 3.875 litre)

In year 2006 US retailing the gasoline at USD 2.98 a gallon whereas Malaysia our petrol per gallon is RM7.4 about USD 2

In year 2000 (1 USD= 3.8 RM)
1 litre petrol in Malaysia cost RM1.26, hence 1 gallon petrol will cost RM4.88 or USD1.28 .
In US 1 gal petrol was sold in year 2000 for USD 1.50 per gallon

A KIA spectra 2.0 in US cost USD 13.5k. Malaysia KIA spectra 1.6 cost RM 75k.
Dollar to dollar it shows how burdensome the cost of owning a car for average Malaysian as compared to our counterpart in the US.

Lets recap

RON 97 petrol RM 1.92 per litre, RON 92 Petrol -- Rm 1.88 per litre, Diesel -- RM1.58 per litre , LPG ---RM1.75 per kg in March 2006

Without the subsidy and tax exemption, RON 97 in the peninsula would have been RM2.46 per litre, RON 92 -- RM2.37 per litre, Diesel -- RM1.98 per litre and LPG -- RM3.21 per kilogram.

In Thailand, the price of RON 97 petrol is RM2.52 per litre, RON 92 (RM2.45 per litre), diesel (RM2.28 per litre) and LPG (RM1.65 per kilogram).

Philippines is RM2.21 per litre for RON 97 petrol, RON 92 (RM2.20 per litre), diesel (RM1.95 per litre) and LPG (RM4.90 per kilogram).

In Singapore, it is RM4.15 per litre for RON 97 petrol, RON92 (RM3.89 per litre), diesel (RM2.39 per litre) and LPG (RM5.32 per kilogram)

Brunei the price for RON 97 petrol is RM1.22 per litre, RON 92 (RM1.19 per litre), diesel (RM0.71 per litre) and LPG (RM1.40 per kilogram).

In Indonesia, it is RM2.30 per litre for RON 97 petrol, RON 92 (RM2.20 per litre), diesel (RM1.68 per litre) and LPG (RM1.89 per kilogram).

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