WHY TRANSPORTATION INCREASE IN MALAYSIA?

We have given tasked by our lecturer Mr. Zamri Yahya to discuss about “why transportation cost increase in Malaysia?”. We have discuss about this topic and found some reason why the cost increase now day. The first factor is about fuel, another than fuel the next factor is political issue, the next factor about this topic is labor and the last factor is toll. After we have discuss about this topic in group, we able to find some solution to reduce the cost, other than that this discussion also have make our knowledge improve and we can share all our opinion about this topic. 

Fuel is the one of the factor that give a big impact to the increasing of the transportation cost. Now day, fuel is very important sources in transportation. As we know, fuel is a limited sources in this world and we can’t renew this type of sources. The problem in this issue is fuel is very limited and have a very high demand around the world. The increasing of the demand effect the increasing of a fuel price. Each month we compile and publish data on gasoline and diesel prices around the world. 

Beside, we also must think about the political issue that become a big factor for the increasing of the fuel price. Why we talk about political issue? This is because, government decreased the amount of fuel subsidy. The subsidy always change time to time, it decided by government itself. 

Total of car production in Malaysia is getting handcuffs on the rise. This is because Malaysians like to change vehicles in the short term. sale and purchase of automobiles and rising oil prices very closely related. Although an increasing number of car sales good news, what we often overlook is the rising price of petrol in the current situation is apparently showing an increasing trend. Percent of Malaysia to buy vehicles will decrease if the price of the vehicle is increased because, indirectly, we have to cover the price of oil increases. Therefore, Malaysians only expect the price to will not ascending of public transport and burden them. Therefore, Malaysians will endeavor for more austerity and wise to buy a vehicle in Malaysia. 

Therefore, many Malaysians will take the public transport provided. To elevate Malaysia on par with developed countries in terms of city and aspects of public transportation facilities, the government should reduce and streamline the public transport fare prices to ease the burden of the people. The government should take initiatives to improve transport and even lighten the burden of the people.

Besides, when the government cut subsidies and raise taxes with raise the price of the vehicle with the vehicle itself, the problem will burden the people. There will be more people who will owe around the waist to resolve a fee for parking. In fact, the percentage of Malaysians not able to purchase a vehicle will increase. Most people are paid a little. In fact, people also need to bear the price of the vehicle service when corrupted, tolls and so on.

In our opinion, the first solution for this problem is the government should play an important role and are concerned about this issue. Government should streamline the price as the price of vehicles, public transportation, fuel, tolls. On the government side, the amount of subsidies and aid to the people should be limited at a reasonable level so that government spending can be utilized in a more fair and used for a variety of purposes for the benefit of the people as a whole. Therefore, indirectly can be reducing the burden of the people.

Next, the responsibility of the people themselves. People should be smart enough to overcome this problem of rising prices. How people should handle this problem? We should be smart enough to deal with this problem by always thrifty. That is to be familiar for using public transportation was available. Besides, always be familiar for sharing a vehicle to go to work or go anywhere. This method is more relevant for fuel-efficient and reduce the burden of rising fuel oil. People will be able for accommodate such a problem if good at managing things like this. People can also take steps to make additional revenue to cover rising prices in order to avoid the problems that will occur.

TRANSPORTATION AND THE ECONOMY

Transportation systems are closely related to socio-economic changes. Economic opportunities are likely to arise where transportation infrastructures are able to answer mobility needs and insure access to markets and resources. However, even if transportation has positive impacts on socio-economic systems, there are also negative consequences such as congestion, accidents and mobility gaps. Transportation is also a commercial activity derived from operation attributes such as transportation costs, capacity, efficiency, reliability and speed.Thus, from a general standpoint the economic impacts of transportation can be direct, indirect and induced. For the direct impacts, the outcome of capacity and accessibility changes where transport enables employment, added value, large markets and enables to save time and costs. Indirect impacts, the outcome of the economic multiplier effects where the price of commodities, goods or services drop and/or their variety increase. Induced impacts, the outcome of economic activities and firms partly relying on efficient transport services for both passenger and freight.  Transportation links together the factors of production in a complex web of relationships between producers and consumers. The outcome is commonly a more efficient division of production by an exploitation of geographical comparative advantages, as well as the means to develop economies of scale and scope. The productivity of space, capital and labor is thus enhanced with the efficiency of distribution and personal mobility. It is acknowledged that economic growth is increasingly linked with transport developments, namely infrastructures but also managerial expertise is crucial for logistics.Transportation developments that have taken place since the beginning of the industrial revolution have been linked to growing economic opportunities. Instead, modes have been linked with the function and the geography in which growth was taking place. This is particularly the case for multinational firms that can benefit from transport improvements in two significant markets that are commodity market and labor market.For the commodity market, improvement in the efficiency with which firms have access to raw materials and parts as well as to their respective customers. Thus, transportation expands opportunities to acquire and sell a variety of commodities necessary for industrial and manufacturing systems. Labor market, improvement in the access to labor and a reduction in access costs, mainly by improved commuting (local sale) or the use of lower cost labor (global scale).