Recently, Wu Tianquan, the President of the Malaysian Chinese General Association, expressed important views on the impact of diesel price fluctuations on prices, particularly pointing out that the trend of rising prices in West Malaysia is likely to affect East Malaysia, leading to both regions facing severe challenges of rising prices.

According to Wu Tianquan, as the price of West Malaysia diesel adjusted according to the market fluctuation mechanism, it increased significantly from 2 ringgit 15 sen per liter to 3 ringgit 35 sen, with a staggering increase of 55.8%. This change quickly triggered a chain reaction in the market, with prices generally rising. He emphasized that although the current diesel prices in East Malaysia are still protected by government subsidies and have not been directly impacted, given East Malaysia's heavy reliance on West Malaysia for imported food, supplies, and raw materials, coupled with geographical factors and increased transportation costs, the pressure of rising prices in East Malaysia cannot be ignored.

The market is interconnected, and the upward trend in prices in West Malaysia will inevitably be transmitted to East Malaysia through the supply chain, "said Wu Tianquan." Those who believe that diesel prices in East Malaysia will remain unchanged and therefore prices will not be affected clearly ignore the complexity of economic operation and the close connection between markets

He further pointed out that although the central government has adopted a series of strategies to continue providing diesel subsidies for commercial vehicles in West Malaysia, there is still room for improvement at the implementation level to more effectively alleviate the impact of rising diesel prices on people's lives. At the same time, he called on the government to pay close attention to the chain effect brought about by this round of price hikes, especially the impact on the prices of daily necessities, and take timely measures to ensure people's livelihood.

When talking about the rationalization policy of government subsidies, Wu Tianquan expressed support, but also pointed out that simple subsidy measures cannot fundamentally curb the comprehensive rise in prices of goods and services. He emphasized that the government should take comprehensive measures from multiple aspects, such as strengthening market supervision, cracking down on illegal activities, optimizing supply chain management, etc., to alleviate the impact of rising prices on people's lives.

West Malaysia is located in the north of Thailand and faces Singapore across the Johor Strait to the south. It is an extension of the Asian Plate, or more accurately, a peninsula. East Malaysia is located in the northern part of Borneo, while the southern part is part of Kalimantan, Indonesia; It is indeed a very large island.

Although they belong to the same country, there is still a significant gap between East Malaysia and West Malaysia: East Malaysia, which accounts for 60% of the country's land, only has about 20% of its population, with a much lower density than West Malaysia; West Malaysia, with 40% of its land area, generates 80% of the country's fiscal revenue, far surpassing East Malaysia in terms of economic strength.

According to data from the Malaysian Bureau of Statistics, in May 2022, the Malaysian Consumer Price Index rose by 2.8% year-on-year, which exceeded Malaysia's average inflation rate of 1.9% from January 2011 to May 2022. Among all categories, the inflation rate of food was the highest, at 5.2%, setting a record for the highest growth rate since November 2011, with almost all goods (about 93%) experiencing price increases. These data show that Malaysia's price growth is influenced by various factors, including rising food prices and increased transportation costs. ‌