In the absence of better public transportation, the hike in fuel pump prices will only lead to more deaths on the road, DAP’s Kluang MP Liew Chin Tong said.

He said that this is as those who cannot afford fuel costs for cars will downgrade to motorcycles, which studies show come with greater risk of fatal accidents.  

Liew (right) said that this was proven by research in March 2006 to June 2008, which found that lower income groups switch from cars to motorcycles to cope with rise in fuel costs.

Citing the World Health Organisation’s Road Safety Report 2013, he said Malaysia has the highest per capita road deaths in the world, at 25 per population of 100,000.

This is nearly double that of India which has 18.9 deaths due to road accidents per 100,000 population, he said.

From the close to 60,000 deaths on the road between 2000 to 2009, the study found that motorcycle fatalities are three times higher than car fatalities and six times higher than pedestrian fatalities.

'Stagflation imminent'

More importantly, he noted, motorcycle fatalities is nearly 50 times higher than bus passenger fatalities.

"In other countries where public transport services are adequately and efficiently provided, petrol price increase will encourage private car drivers to switch to public transport.

"However, in the case of Malaysia, each fuel hike exercise means more deaths on the road," he said.

RON 95 and diesel pump prices rose 20 sen per litre effective today, following a cut in fuel subsidy.

Meanwhile, Liew said that the fuel hike and goods and services tax, which will come into effect April 2015 could cause stagflation.

Stagflation – a phenomenon caused by inflation at the time of economic stagnation – could happen as Malaysia’s economy is driven by domestic demand.

With prices of goods and services expected to be higher, it is thus expected that Malaysian consumers will tighten their belts and spend less, leading to a slowdown.

"Stagflation is the worst nightmare for our economy. But no one seems to have an answer," he said.

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