Wednesday, October 30, 2013

Najib Cut Fuel Subsidy Now,Better Late Than Never.

Hantu Laut

In spite of the oppositions pouring scorn on Prime Minister Najib's capability of running the country he did make significant transformation in some key areas crucial to the economic well-being of the country.

The World Bank Report below shows that Malaysia is among the economies that improved the most across three or more doing business areas

So, Najib did nor rest on his laurels as perceived and deplored by the opposition Pakatan Rakyat leaders.

For starter, the introduction of the GST is a welcome sign that Malaysia is moving forward.

The next big thing Najib should do to is trim the budget deficit by removing fuel subsidy completely. It is the most wasteful and unproductive subsidy that have eroded the nation's coffers. The subsidy have led to smuggling of our resources to neighbouring countries, where fuel costs are higher and sold at market price. 

Najib should not wait too long to remove the subsidy, he must do it  soonish, preferably before the end of 2014, on the premise that "time is a good healer" hence if the premise is true, then the conclusion must be true. Time heals the grieving heart, people tend to forget the bad times as time goes by.

The government spent almost RM24 billion a year on this wasteful and unproductive spending, which most Malaysians are unaware of and failed to appreciate. 

Just imagine how much developments beneficial to the people, or reduction of our fiscal deficit can come from this money, instead, of turning it into wasteful and toxic carbon monoxide.

He can do wonders with the saving.

Read the World Bank Report here.

Ease of Doing Business in

This page summarizes Doing Business 2014 data for Malaysia. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.


REGIONEast Asia & Pacific
INCOME CATEGORYUpper middle income
68down 2

81.8780.06down 1.81
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
DB 2014 RANK16DB 2013 RANK***19CHANGE IN RANKup3
DB 2014 DTF** (% POINTS)94.31DB 2013 DTF** (% POINTS)93.41IMPROVEMENT IN DTF** (% POINTS)up0.90
Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.
IndicatorMalaysiaEast Asia & PacificOECD
Procedures (number)
Time (days)
Cost (% of income per capita)
Paid-in Min. Capital (% of income per capita)
No.ProcedureTime to CompleteAssociated Costs
1Apply to the Companies Commission of Malaysia (CCM) on the prescribed form (13A) to ensure the availability of the proposed company name1 dayMYR 30 per name search application
2Company Secretary prepares the company incorporation documents3 daysMYR 1,000
3File necessary documents with the Companies Commission of Malaysia (CCM) one-stop shop and obtain company incorporation, tax registration, registration with the Employment Provident Fund (EPF), Social Security Organization and the Inland Revenue Board, a1-2 daysMYR 1,000 (registration fee)+ MYR 220 (stamp) + MYR 100 (post-incorporation package)
** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...
***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.


Anonymous said...

Dibawah adalah facebook upload dari sepupu saya yang outstation di Mumbai India. Seorang muda yang memegang jawatan HR vise president disalah satu sharikat MNC. Dia berpanggkalan di M'sia dan menyelia factory yang berada didalam asia pacific. Kita harus bershukur M'sia tidak sebegini.

Hari nie diarahkan untuk tinggalkan ofis dengan segera setelah beberapa gangster muncul dengan mempamirkan senjata api untuk memeras ugut syarikat. Pemimpin politik pat kawasan nie tak berpuashati disebabkan syarikat telah menolak tender anak syarikat dia. Tawaran yang tidak munasabah dan melibatkan rasuah. Walaupun telah membuat aduan polis tengahari tadi, namun pihak polis 'terpaksa' mendiamkan diri. — at Sheraton Four Points - Navi Mumbai, Vashi

Purple Haze said...

RM 24 billion on wasteful spending amounts to about RM 850 per Malaysian.

That comes up to at least RM 2/Malaysian/day. Which means that this money could have been used to buy a roti canai and the tarik for every Malaysian for breakfast every day of the year.

Perhaps not a good analogy but the message is people do not have to go hungry if that money is directed to "good" purposes.

Instead, the incumbent govt has been regularly requesting for Supplementary Bills (on an annual basis) to add on to previous year's Budget

Its time for change.