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NewsFocus/The economy: Price increases rank high among voters
25-Nov-2007, New Straits Times

THE impact of world oil prices, as well as an increasingly competitive economy, on the livelihood and income of the average Malaysian is by far the strongest voter concern detected in the Merdeka Center survey findings. Close to a third of the 1,024 respondents cited price hikes, the rising cost of living, jobs and other economic worries as "the most important issue during the next general election". "The government's ability to solve people's problems," which came second, landed at a distant 17 per cent. Corruption was third at 14 per cent. Local constituency issues -- normally the dealmaker in by-elections -- was relegated to fourth.

The survey included data from the Merdeka Center's previous polls to track shifts in voter sentiments and perceptions. Combined, they showed what appeared to be a link between sentiments and price hikes as well as the government's various initiatives to cushion its impact on the people. Optimism dipped each time the price of fuel and other goods and services were increased, but climbed again in some cases on the back of various measures taken They include the cut in road tax for vehicles early this year, the pay rise for civil servants announced in May, the 2008 Budget tabled in September, and the June-October Bursa Malaysia stock market rally. Overall, the findings showed that for the last 12 months the percentage of respondents who felt that their personal income situation was favourable remained steady, hovering at 58 per cent in November last year and 60 per cent at present.

Chinese respondents' sentiments on the economy were relatively the most pessimistic, pointedly so in some cases. The Malay respondents' level of optimism, on the other hand, has been steady and on an upward swing. The survey finding attributes this to factors such as the increase in the price of commodities such as palm oil. The survey, completed soon after the launch of the Eastern Corridor Economic Region, found that awareness about the regional growth corridors and their benefits is still modest. A possible reason could be that the corridor initiatives are relatively young projects. The May announcement of the civil service pay hike though saw a clear rise in the percentage of Malay respondents who felt that their personal income was favourable -- from 61 per cent that month to 70 per cent at present. On the whole, 77 per cent of respondents polled said that they had enough, or more than enough, to make ends meet.