Fuel Price Won't Choke Growth, Private Consumption - UKM VC

BANGI (Selangor, Malaysia), Feb 6 (Bernama) -- Retail fuel prices, which saw another round of increase in February, remain in the lowest range and won't significantly impact private consumption or choke Malaysia's economic growth. Not everything is tied to oil prices, Universiti Kebangsaan Malaysia (UKM) Vice Chancellor Professor Dr Noor Azlan Ghazali said Monday. "There are many other indicators as well (for the private consumption pattern). Consumption also depends on how you see the economy and also the domestic situation, and which sectors you are looking at," he added. Hence, he opined that Malaysia's private consumption would not be significantly changed, due to the recent hike in retail fuel prices. "Besides, Malaysia remains in the class of countries that have lower retail fuel prices and thus, is not expected to unnecessarily choke off growth," he said. He told reporters this after announcing UKM's separate collaborations with the Institute for Democracy and Economic Affairs (IDEAS) and the World Bank here Monday. Malaysia's petrol and diesel prices have been placed on a managed float system since Dec 1, 2014, following the removal of fuel subsidies. Fuel prices of both RON95 and RON97 increased by 20 sen (US$0.045) for February, while the price of diesel rose by 10 sen (US$0.022). Also present at the event Monday was World Bank Country Manager Faris Hadad-Zervos, IDEAS Founding President Tunku Zain Al-Abidin Tuanku Muhriz and Chief Executive, Wan Saiful Wan Jan. Providing an outlook on crude oil prices, Hadad-Zervos said it would continue to fluctuate, but unlikely to see a massive swing moving forward. "The fluctuation is a new normal to the world, but, we are unlikely to see an oil price spike as seen in the past, predominantly for technical reasons," he added. UKM and the World Bank had earlier launched a search for two candidates to join a new research programme for interns under the UKM-World Bank Research Intern Pilot Programme. The programme is targeted to start in April and interns must be currently enrolled in a postgraduate programme at the university. They will join the World Bank Group office in Malaysia in April. The university has also formed a collaboration with IDEAS to promote mutual interest in joint research, academic and public advocacy activities via the launch of the Southeast Asia Network (SEANET). SEANET is currently a regional centre within IDEAS and focused on catalysing ASEAN nations development. The partnership will see IDEAS and UKM's Institute of Malaysian and International Studies (IKMAS) run SEANET and work with policymakers and opinion leaders in ASEAN on property rights, freer movements of goods and people as well as inclusive growth. UKM also conferred the UKM Royal Fellow on Tunku Zain Al-Abidin Tuanku Muhriz. -- BERNAMA