The Penang government’s decision to take over the ferry service is a good move especially given the poor performance of Penang Port in running the service.

Penang Port could have done better. It’s a pity that it was unable or unwilling to revamp and expand the ferry service (including introducing new routes) for reasons best known to itself. There was no reason for such a poor service, evidence of which could be seen in the long queues of motorists on the island heading to the mainland at night.  There was no shortage of demand, and yet the  service was largely neglected.

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The crude oil price has dipped below US$50/barrel. Similarly the prices of other commodities have plunged. Steel prices, for instance, have crashed from $1,200/ton in June to below $300 – and it is likely to fall even further with demand from China expected to weaken.

Now the question is how low can these commodity prices go?

The speculative boom run in commodity prices began in 2001-2002, when oil broke the $30 barrier.

Certain analysts are now suggesting that we are now only half way down the road back to that trough. So commodity prices still have room to fall further and they could continue sliding until the end of 2009. But it is hard to say if oil will approach the $30 region given that it is getting harder and more expensive to find new global oil reserves.

Anyway, I heard on the radio that the government is intending to further cut oil prices.

The more immediate issues are:

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