Saturday, July 17, 2010

Why the Subsidy Cut Will Become a Political Burden for BN?

The government may be trying to justify the subsidy cut for oil, gas and sugar as something essential and crucial to fuel economic growth. However, a lack of well thought out implementation plan is not going to convince many that the subsidy cut is going to help us become a high income economy in the near future.

There are several things which the federal government had overlooked and does not show any sign of willingness to address them:

1) Wastage & a lack of financial accountability. The government cannot rationalize its subsidy cut without first addressing its own financial prudence.

A member of parliament, Liew Chin Tong, argued that the Prime Minister’s Department’s allocation for 2010 is a whopping RM12 billion, not RM4 billion as reported in the media. He said that the parliamentary reply to his colleague Taiping MP, Nga Kor Ming, revealed that RM3.9 billion was allocated to the PMD for its “operations” in 2010. But he seemed to be withholding another piece of information already in the public domain. Under a separate category of “development”, the PMD received RM 8.238 billion. Thus, the total budgetary outlay for the PMD in 2010 is RM12.1 billion, as revealed by the Federal Budget Estimates.

This is a very shocking number. Why would a PM's department be hoarding so much public allocation? How does he intend to use the allocation? What are the KPIs? Is there any financial/allocation guidelines spelled out by the Treasury to ensure that there is no misused and abuse of public funds?

Without observing a strict financial prudence in his government, the PM's decision to cut subsidy will not be met with a good reception. It will lose him votes among the Malay voters too.

2) Another BN MP, Ong Tee Keat, wrote in his Facebook while it is necessary to reduce subsidy there is a greater need for the government to go after those who misappropriated public funds e.g. PKFZ. There are other similar projects which are causing a huge financial headache for the government. The unscrupulous action of approving dodgy projects especially those awarded to cronies or companies linked to politicians is not going to be well received by the public. A lack of action from the government to tackle these issues and to bring the culprits to book is giving it a bad reputation of trying to protect its cronies.

3) The government continues to take the people for granted by announcing an abrupt increase of petrol, gas and sugar prices. The Malaysian public abhor such tactic. The government is accountable to public opinion and it should have given us a timetable for a gradual subsidy reduction.

4) Recently, the Ministry of Human Resource launched a training scheme for unemployed graduates and touted the programme as a move to realise the NEM's aim to make Malaysia a high income country by the end of the decade. It hopes to increase the per capita income from USD7k to USD15k by then.

This statement shows that the government does not have a clue or a plan on how to help enhance the income of Malaysians. The training programme, if any, is a short-term plan to help rectify a flaw in our local tertiary education system. We have persistently produce low quality graduates which cannot fill the skills gap in the economy. The higher education ministry and the government should sit down and plan out a comprehensive review and revamp of the entire education system.

It is laughable for minister, Dr. S. Subramaniam, to claim that this programme can help to create higher paying jobs for the graduates. What can a 3-6 months training programme achieve what a 3-4 years university education cannot do?

5) What Najib need is good solution providers and implementers and not spin doctors. It does not matter how the price increase is depicted on local newspapers or how local editors are willing to put a twist on the issue by calling it a brave decision. It is brave indeed for a lack of plan for the PM to go ahead with the subsidy reduction.

At the end of the day, the call for Malay unity can only help UMNO this much in order to reverse the coalition's fortune.

The beat of an empty stomach regardless of race sounds the same. Soon, more Malaysians will realise that it does not matter which race based party is ruling the country. What is more important is who can help lift this country out of its doldrums.

16 comments:

Anonymous said...

• Cancerous Disease:-ALL THE UMNO BN ROGUES HAVE IN COMMON ARE TRYING THEIR BEST TO BANKRUPT THE NATION’S COFFERS IN THE FASTEST AND THE MOST CORRUPTED MANNERS, THESE ROTTEN ROGUES’ CORES OF THE LOT NAMELY SCOPENE SUBS, ATLANTUYA, CRYSTAL MOSQUE, MARINER CLUB, STADIUM COLLAPSE FIASCOS AND MANY MORE TO BENEFIT THEMSELVES, UMNO BN & CRONIES FIRST, THE RAKYATS LAST OR NEVER ALWAYS.
Before anything else, UMNO will first have to line their pockets, then their families pockets, then their cronies pockets and then whatever morsels left to the selected segment of the Rakyats.
Now the UMNO BN Rogues will bankrupt the Nation’s Coffer and cut subsidies to rob the poor and to subsidize their rich crony Tycoons so that the benefits can go back to them on demand. All the poor Rakyats were having a bad deal since 53 years ago with them in power not once did they not squeeze the Rakyats with taxes after taxes now they will try to impose GST 4% on all levels that will resulted in more than 16% taxes imposed on all ordinary basics consumers’ goods from materials Suppliers, manufacturers, wholesalers to retailers. Now they are trying to cut subsidies but they are not cutting back taxes but instead increased the taxes.
Also, cash rich GLCs like Petronas, Felda, Sime Darby, MISC, Bank Bumiputra, Renong etc. are not spared from being fleeced and while some became History as they no longer exist today ok???
ALL MALAYSIANS IRRESPECTIVE OF RACES ARE SUFFERING THE OPPRESSIVE RULE BY THE ROGUES OF UMNO BN AND WE ARE HOPEFUL THAT THERE ARE MORE RPKS WHO DARE TO EXPOSE & BRING OUT ALL THE WRONG DOINGS OF THE CORRUPTED LEADERS OF UMNO BN TO THE KNOWLEDGE OF THE WHOLE WORLD SO THAT ALL MALAYSIAN VOTERS WILL VOTE WISELY COME GE 13 AND BRING DOWN THE CORRUPTED AND OPPRESSIVE UMNO BN GOVERNMENT SOONEST POSSIBLE FOR THE FUTURE WELL BEING OF ALL MALAYSIAN CITIZENS AS THE COUNTRY’S RESOURCES WILL SOON BE DEPLETED IN NO TIME UNDER THE WASTEFUL AND CORRUPTED UMNO OFFICIALS MIS-MANAGING THE MALAYSIAN ECONOMY.
All future generations of Malaysians will suffer great poverty after Umno BN would have bankrupted the NATION’S Coffers.
NOW THEY WILL START SQUEEZING THE RAKYATS WITH THE FUEL PRICES INCREASE AS THIS WAS THE PROPAGANDA OF FUEL SUBSIDY THEY PLANTED SOMETIME AGO IN ALL THE MSMs AND THIS WILL CAUSE THE INCREASE OF ALL THE PRICES OF GOODS AND SERVICES IN A DOMINO EFFECT WITH THIS EVIL DESIGN WHICH WILL AFFECT ALL RAKYATS AND MOST SERIOUSLY THE MIDDLE AND LOWER INCOME GROUPS WILL BE THE ONES SUFFERING THE MOST.
THESE WERE THE GREAT LIES AND DISTORTIONS THE CORRUPTED UMNO BN HAD TRIED TO SPREAD THE PROPAGANDA IN THE MSMS AND IN ORDER TO BRAINWASH AND HOODWINK THE MALAYSIAN GENERAL PUBLIC INTO BELIEVING THERE ARE REAL FUEL SUBSIDIES IN OIL (PETROL & DIESEL) AND GAS, THERE CAN NEVER BE ANY SUBSIDIES IN THESE ITEMS BECAUSE MALAYSIA IS A NETT OIL AND GAS PRODUCER MEANING AFTER THE DEDUCTION OF DOMESTIC CONSUMPTION MALAYSIA HAS PRODUCED AN EXCESS OF THESE ITEMS FOR EXPORT AND WHATEVER IS FOR DOMESTIC CONSUMPTION IS SOLD AT A DISCOUNT AND NEVER CONSIDERED AS SUBSIDY AT ALL QUOTING AN EXAMPLE LIKE OIL AND GAS PRODUCER LIKE BRUNEI AND SAUDI ARABIA AND OTHER GREAT OIL PRODUCERS, DOMESTIC PETROL AND DIESEL PRICES ARE SOLD LOCALLY AT A VERY STEEP DISCOUNTED PRICES AS COMPARED AGAINST WORLD IMPORTERS NON-OIL PRODUCERS’ LOCAL CONSUMPTION PRICES AND THE UMNO BN ROUGES ARE TRYING TO TAKE ALL MALAYSIANS FOR A RIDE BY INSISTING THAT THERE IS A SUBSIDY IN THE OIL AND GAS PRICES BUT IN FACT THERE WERE NONE BUT A STRATEGY TO CHEAT FOR THEIR OWN END TO PRACTISE MORE CORRUPTIONS FROM THE EXTRA THAT COULD BE MADE FROM THOSE LIES AND DISTORTIONS THEY TRY TO SPREAD IN THE MSMES CONTROLLED TIGHTLY BY THEM WITH THE RESTRICTIVE YEARLY RENEWAL PUBLISHING LICENCES.

Anonymous said...

"It will lose him votes among the Malay voters too."

Sorry Khoo, you may be wrong. The Malays are a very emotional people. If at all they are rational they would have dumped this BN govt long ago.
They know UMNO leaders are corrupt. They can barely make ends meet. They are struggling through life but they know they are the Tuans and UMNO will defend their race and religion.
They can be fooled all the time by UMNO.
Little wonder they are lagging behind on all fronts.

Anonymous said...

Habis lah .. apa lagi.

terlambat

Anonymous said...

I am a Malaysian but my family and I have moved to Singapore 4 years ago. We have better infrastructure, lower tax rate, lower housing loan interest rates, great transport system, and the government makes more sense here than Malaysia. I am probably getting slightly more than what I would get paid in Malaysia SGD to RM but the cost of living here is much lower and I finally can see savings in my bank accounts... Singapore government just sent me a letter of invitation for Singapore citizenship. I think I will accept it. My 2nd baby is coming and the government is giving tons of benefits and subsidies to have my baby as a Singapore citizen. My 1st baby was born in Singapore and not Malaysia. I went to the Malaysian embassy to apply for my baby's passport and the officer told me there is 20 - 30 Malaysians EVERYDAY revoking their citizenship to become Singaporean... so wake up call to the government.. oops sorry, to the public, get Malaysia act together or become another Myanmar.

Razali said...

Nothing will help the Opposition more than the government continuing with a series of cuts in subsidies. When the cuts begin to bite among rural voters, that will spell the end of BN.

Anonymous said...

This government is more stupid then i first thought, cutting subsidies to encourage economic growth? How? I don't understand this economic theory!

So how does the increase in cost of production promote economic growth? It would only lead to higher inflation, decrease demand as it's now more expensive.

This is a highly unpopular move by the BN government in a period where BN support is on the decrease and many would expect this move to be suicidal in the next GE.

The fact that the BN gov't has gone ahead with it, only spells trouble for Malaysians as it suggests that the country may be in a worse financial position than what they have been saying.

The question on everyone's lips is why then continue with such wasteful white elephant projects etc?

Are they trying to bankrupt us?

Anonymous said...

if ge13 we still change this corrupt goverment i think me and my family also will migrate.let the malaysia boleh become history

najib manaukau said...

The cut is to enable the morons in Umno to have more in their corruptions !

Anonymous said...

I was a Malaysia but just converted my whole family to Singapore Citizenship. I came to Singapore to further my education in 1985 after been denied entry to any University in Malaysia although being amoung the better half of my cohort in A Level. At 19 back then, it was the lowest point in my life knowing that I deserved a place in local University based on my results. The only question the Admission departments of the local university was to verify my "Bangsa" in my form as my name did not sounded Non-"Bumiputra".

I applied for a place in a Singapore Polytechnic & the only questions they asked me was all on IQ, my interest in Science, Math, my reasons for choosing the course and my career plans. Singapore government paid for my education and provided even monthly pocket money back then. Each year thousands of Malaysian students were in the same fate as me. probably still the same now. After graduation, we were offered jobs in MNCs which we had to sign a 3-year bond. I worked extra hard in several MNCs and became a VP in the last. I am the CEO of my own company now, thanks to the meritocracy system Singapore practices, people who worked hard can move forward in their career and in life. If I were to stayed on in Malaysia after my A level, I am not sure if I would have done well.

For the past 25 year, I did not received a single notice, incentive, offer to go back, to register as a Voter, nothing. But recently the Malaysia goverment sent a notice to my son to serve the 3-month National Service at the same time he suppose to enrol for the Singapore National Service. My son is proudly doing his National Service for Singapore now. My family feel a sense of service to Singapore not Malaysia. This does not mean I have no emotions for Malaysia, I love Malaysia and I proud to tell people about my place of birth and bring friends to visit Malaysia. It's the current Government that is destoying the country's potential.

Anonymous said...

Khoo,
I learnt this in school when I was 10 yrs old.'PENNY WISE POUND FOOLISH'

Anonymous said...

No surprise to see FOOLs still trusting a person who make statements to tightening our belts before the last election and now he is spending our savings which we are trying to cut down

Anonymous said...

We worry, we feel the burden, there are so many fools brainwashed by Mahatir until they cannot be salvaged but keep voting Be End.
Sarawak's natives are hard-core BN supporters even though they are raped and land taken away. Why? Cos they only read government controlled papers and their so called leaders lead them to believe in BN. So easy to sway them; beer and cows during election for them to get pissed, they will vote BN the following day!!!
Anyway to save the country?
Sarawak and Sabah will pay big dividend to the BN government again as being their fixed deposits. You SEE.
Only hope.... a miricle will happen!!
Love to see Mahatir, the curse of Malaysia, sitting in Sg Buloh jail.

Samuel Goh Kim Eng said...

SPIRAL EFFECTS OF PRICE HIKES

Any price hikes on any popular or essential items
Will definitely have spiral effects on related goods
Most visible ones being increased prices on various foods
Bearing in mind that any changes to the roots will affect the stems

(C) Samuel Goh Kim Eng - 180710
http://MotivationInMotion.blogspot.com
Sun. 18th July 2010.

Anonymous said...

One would think that when one's land gets taken one would wake up after all, land is key to the very survival of rural folks. They depend very much on their land, forest and rivers, for their day to day livelihood.

So many of their children who never had proper education have to work in towns..many can be found working in pubs and night clubs whilst males turn to gangsterism.

Their leaders have mislead and deceived them and are still doing it.

Many of their educated contemporaries are not helping their rural folks realise what's happening to them because of their government jobs, where it's better to keep quiet and be obedient. But this cannot last, as the civil service is already bloated as it is!

In the long run, the result will be a whole lost generation of people, who are not educated and those 'educated' ones are unemployable.

Just read the recent report in borneo post on a RM 10 million fund for re-education of local graduates! wtf! Why do university graduates need re-education? If they do, doesn't it only mean one thing, the Universities they graduated from didn't do any education in the first place. And, if not, then those Univerisites should be shut down! The chancellors, staffs, the eduction minister should be ashamed of themselves for failing the younger generations and should resign! These people knows no shame and basically, it's rubbish in, rubbish out!

At the end of the day, if the bumis amongst us do not wise up to whats going on, we are all doomed to fail our future generations. This applies to everyone of us regardless of race or religion, after all, we are all in the same boat!

Those of us who reads this blog are probably already well aware of whats going on. The problem is, those who doesn't get to read such blogs are the very ones holding the key to power. Most of them probably are still illiterate and most of their children are poorly educated!

God help us all.

Anonymous said...

If the current government is not kicked out soon and I do mean real soon, don't be surprised that in the not too distant future , fellow Malaysians will be working as maids and laborers in Thailand, Vietnam, Hongkong, Taiwan and even Indonesia.

Anonymous said...

Why the Subsidy Cut Will Become a Political Burden for BN?

Only if the population is rational. And the Malaysian population has a short memory, tolerant to adversity (ie takdir tuhan), and very emotional.

Give it 3 months and all this will be forgotten much like the PKFZ now spiraling past RM13 billion. Malaysians will continue paying that bill to 2050. And we up in arms? No. Even when the nation will be bankrupt by 2019. Still no.

So no problem for BN.