Showing posts with label Subsidy. Show all posts
Showing posts with label Subsidy. Show all posts

Friday, June 10, 2011

Is Malaysia Already A Welfare State?

Hantu Laut

Deputy Prime Minister Muhyiddin Yassin deriding PAS by saying that the BN had not only achieved but exceeded its benevolence as a welfare state is false and pure histrionic.

Either the DPM do not understand the definition of welfare state or he is trying to bluff his way thinking Malaysians would swallow his unfounded claim hook, line and sinker.

Giving across the board subsidies to the general population does not make you a welfare state if that what the DPM think welfare state is all about.You can't call your country a welfare state if there still exists abject poverty.Malaysia has pockets of abject poverty scattered all over the country.You read about them in the news quite regularly.Maybe, the DPM only read political news and missed this social scourge that still afflict the nation.

A welfare state has the responsibility for the well being of its citizens by ensuring minimum standard of living for everyone.Most Western nations are welfare states because they provide the minimum comfort and standard of living for its citizens.

A welfare state would make available universal free education and medical care, insurance against sickness, disability and unemployment, income supplement and old age pension.Malaysia, by any definition is not a welfare state.Its housing programme for the poor is pathetic resulting in squatter's colonies sprouting all over the country.

PAS proposal is good but can they actually implement it when they took power.It needs a lot of financial resources.The only way is to remove all subsidies for the general population and use part of the savings for welfare purposes.

The present system of subsidies practised by the current government is an unfair system.Its benefits the wealthy and the middle class much more than the lower income and the poor, particularly and food and fuel subsidy which should be scrapped all together and spent the money on providing welfare benefits for the poor, old age citizens and good public transportation system in every major cities.

The lower income do not wish to own a car but some are forced to buy one because of the poor public transport.The government's policy of putting a car in every household is wrong, it's a burden on the poor and lower income group, when they have to pay through their noses for a car that could have cost much less if the protectionist policy is removed.

Owning a car eats major part of your income if you are in the lower income bracket.Even some middle income living in the city find it hard to make ends meet.

It is common in Malaysia for someone earning RM700-800 a month to buy a car.After paying the monthly instalment and fuel they have no money left to maintain the car which is one of the reasons for the high road fatalities in this country.

Let's hear what Muhyiddin means by saying Malaysia is already a welfare state.I hope he can explain in details.

For PAS I hope it is not a political gimmick to fish for votes.


Nik Aziz here.

Sunday, May 22, 2011

Anwar Looking Down At The Poor Orang Kampong

Hantu Laut

There were 1000 strong poor kampong folks in Cheras Baru who listened to Anwar's bullshit about subsidies for the poor and Najib bowing to rich towkays.

If the kampong people believe him I don't blame them because they don't know any better but Anwar is certainly a liar and a bigot because he looks down on the poor kampong folks and think they are stupid and can be easily fooled.

Somebody in the crowd should have asked Anwar when he was Finance Minister did he give huge projects and businesses to any poor folk in Cheras Baru or in any other kampong or he gave it to the same kind of people who can do the job properly, help stimulate the economy, generate more jobs for the people and pay more taxes into the government coffers.

Ask him how many people are under his employment as compared to people like Ananda,Bukary,Vincent Tan,Francis Yeo and thousands of other entrepreneurs and businessmen that have contributed to the economy and well being of this country.Ask him how much has he contributed in term of taxes, foreign exchange gains and other economic contributions that have helped put money in our pockets and helped the government to develop the country giving us a better live.

“They give subsidies to poor people and call it opium but when they give it to the rich it is okay although they are the real opium addicts,” he said in response to Najib likening petrol subsidies to opium.

At lease Najib is honest and prepared to bite the bullet and stake his job to take unpopular decision to save the nation from bankruptcy. The present economic situation would bankrupt the nation if the government continue giving out too much subsidies.

Would he like to turn this country into an agrarian nation like what Pol Pot and the Khmer Rogue did in Cambodia many years ago, killed all the intellectuals, the doctors, lawyers, teacher, businessmen and anyone using glasses deemed to be pests and parasites.

Anwar argued that the subsidies could be maintained if the “dictatorial” BN clamped down on corruption.

Yes, agree, but what is the quantum between the two?

Wasn't he charged for corruption too and the sentence still stands.

Without the rich no country can survive economically.They are the economic engines that create sustainable economic output and create employment for the people.

You can listen to Anwar at your own perils.

Kick out BN, Anwar tells the poor here.

Friday, July 16, 2010

Removing Subsidies, Doing The Right Thing

Hantu Laut

I hope this would be the beginning of the end of spoiling Malaysians with all those subsidies and the beginning of taking the nation to higher level. The Prime Minister is doing the right thing to do away with the subsidies in phases so as not to burden the people.

Removing the subsidies must be replaced by increase in income for the people.Malaysia must move out of the low-cost mindset and into higher productivity and higher per capita earning.

Malaysians still have low productivity compared to places like Singapore, Hong Kong, Taiwan and South Korea. These are the countries we should be using as our yardstick to higher productivity and better growth.

The "omong-omong kosong" culture during working hours are some of the reasons for low productivity. Malaysians have the tendency to while away instead of while-you-wait in performing their tasks and the biggest culprits are public servants.

Increase wages but make sure they give back in return better output.The PM should also assure Malaysians that the saving would not be wasted on cronism and corruptions.

Thursday, December 3, 2009

"Ask Not What Your Country Can Do For You." Spoiled Malaysians

Hantu Laut

Malaysians are probably the most spoiled people on earth.Their subsidy mentality never seemed to end.Not only have they become too dependent on government's subsidies they have also become a thankless lot.

Maybe, Malaysians should be constantly reminded of John Kennedy's famous "Ask not what your country can do for you - ask what you can do for your country." Malaysians insatiable appetite for subsidies and corruptions would one day bankrupt the nation.

The Malaysian government subsidised anything from sugar,cooking oil to cooking gas, petrol and diesel.The list is not exhaustive.There are many other crutches provided by the government and Malaysians have taken it as their God's given right and not see it as a privilege.

The sorry state of this subsidy mentality is the fault of politicians and the government.It has now become extremely difficult to remove the subsidies without offending the rakyat and a probable backlash in the next general elections which the government is trying best to avoid by succumbing to the political blackmail.

This wanting to please the rakyat, an overture now getting even more ridiculous by a new set of proposals and the likely implementation of "Robbing Peter to pay Paul" policy in the new pricing mechanism for petrol and diesel making it appears that the government has ran out of sound economic ideas.There was no indication how the government going to police the system.

Without any offence to honest Malaysians, with the low level of honesty in this country, the system would be opened to abuse.The same that happened to all the subsidised commodities, through smuggling to neighbouring countries, would happen again.Unwittingly, the government or for that matter Malaysian taxpayers are also subsiding the Thais and Indonesians bordering this country.

This time the poor would sell the cheap fuel to their richer friends and families.Unless, the government have in mind a wartime type of quota to stop abuse.It would than makes the country looks like a third world country run by a tin-pot dictator.

The Malaysian government is living dangerously.When the black gold stopped flowing from the asses of the earth on our soils, we would be so screwed financially, the whole economic structure may collapse in a flash.Almost 40 percent of our budget comes from oil revenue.

It's about time the government remove the pricking pain, once and for all, abolish all subsidies particularly petrol and diesel.The two-tier pricing system is not going to make anyone happier but would open the doors to more abuse.

If the government is seriously concerned about the welfare of the poor and those living below the poverty line, it's probably cheaper and makes more sense to give them direct benefits, putting cash directly in their hands rather than spoiling the whole nation with various kind of subsidies.

Proposal to introduce GST is a move in the right direction.This would make tax collections more efficient and compensate some of the losses through evasion and avoidance by legal manipulations.

I just came back from Vietnam and Cambodia.The price of premium petrol in Cambodia is US$1.01 per liter.Malaysia, a much richer country with better standard of living pampered its citizens with cheap petrol, diesel and hosts of other things.

Monday, June 2, 2008

Najib: Think Again !

Hantu Laut

The Deputy Prime Minister Najib Abdul Razak said the government has postponed its decision to ban sale of fuel to foreign registered cars within 50 miles radius of any border which was supposed to commence on Friday. It ultimately aims to increase the price of fuel throughout the country for foreign cars.

The reason for the postponement was not stated but it is safe to assume that the government are not sure how to go about doing it and the repercussions it may have on other industry with possible negative outflow on tourism.

The idea of having separate pumps for foreign cars would require additional capital expenditure and may lead to abuses by dishonest dealers who still can sell the cheaper fuel at their own price to foreign cars, cheaper than the fixed price for foreign cars but slightly more than the domestic price and pocket the difference in pricing.The Singaporeans and Thais would be happy to collaborate to get the cheaper fuel and make the dealer slightly richer. Do not underestimates Malaysians tendency and capacity for cheating and do not overestimates the effectiveness of our enforcement authorities. Most of the time the crooks got away.

Corruption, smuggling, abuse of power are just some of the examples of cheating in this country, which run into billions of ringgits every year.

A civil servant friend once told me how he is getting sick of politicians making high moral sounding speeches telling civil servants to discharge their duties honestly and not to be corrupted. He said "I get sick in the stomach every time I listen to those bastards telling us not to be corrupted as if we don't know that they are stealing billions from the nation like there is no tomorrow.They are just like fishes, when it starting to rot, it stinks at the head and than the rest of the body follows. They are the heads, we, the civil servants are the bodies, when they stinks, we stinks too". He said if the politicians are honest, uncorruptable and dedicated, majority of civil servants would follow suit.It's called leading by examples but, unfortunately, that has never been the case.

Would it be a wise move to have two-pricing system, one for domestic car and the other for foreign cars and what would be the saving in monetary term or would it have a negative impact on tourism in the country?

The top tourist arrivals by nationality in 2007 are shown below:

Singapore 10,492,692
Indonesia 1,804,535
Thailand 1,625,698
Brunei 1,172,154
China 689,293

(Source:Malaysia Hotel News)

Singaporeans are the biggest contributor to our tourism dollar.

Assuming 80% of Singaporeans,Thais and Bruneians entered the country by roads in cars,coaches and by trains.

There were 10,632,251 visitors in 2007. Assuming only 50% of the figure were true paying tourists,we would still have 5,316,125 visitors, majority of which probably came in their own cars. Let say we put a hypothetical figure of 3 persons to a car, we would have 1,772,041 cars entering the country and assuming they spend an average of RM300.00 on petrol per car, the total bill at current price would be RM532 million per year for foreign cars.Assuming the government increases the pump price for foreign cars by 100%, the total bill would be in the region of RM1.064 billions per year unsubsidised.

The total tourist receipts for 2007 was RM46.1 billions.It is safe to assume that 50-60% of the receipts were contributed mainly by Singaporeans,Thais and the other top arrivals.That's a whopping RM23 billion or more in tourism money, just losing 10% 0f it would mean RM2.3 billion gone, which is much more than the total revised fuel bill.

The net benefits to the government by increasing the price of petrol for foreign cars seemed negligible and not worth the effort.On the other hand it may loses the spin-offs from tourism if there were to be reduction of tourist arrivals due to the higher cost of fuel.

Government should not just look at what it pays directly out of the subsidy but should look at the bigger picture of the spin-offs from the industry.

To control and lessen the selling of subsidised fuel to foreign cars, the government should make it mandatory for all foreign cars entering the country to have minimum 3/4 tank of petrol.Any car that failed to comply with the ruling should be fined on the spot with a fixed amount set by the government.

With the 3/4 tank ruling those trying to buy cheap fuel at border towns would be weeded out and the bona fide tourists wouldn't be punished and the country continue to get its tourism spin-offs.

The Deputy Prime Minister Najib Abdul Razak said that Singaporeans are saying they don't mind paying the market rate.That's probably just lip service. The Singapore government for sure don't want the Singaporeans to come to Malaysia to spend their money here.Don't forget they have 3/4 tank ruling on Singapore cars leaving the island for Malaysia for many years now.

The best solution is to remove the entire subsidy on petrol and diesel and have one price structure.The government should only keep the subsidy on essential items such as cooking gas, rice and other essential foodstuffs for the sake of the poor and those in the low income bracket.

The RM56 billion subsidy spent on petrol and diesel is more than sufficient to improve the public transportation systems in the major cities and towns which will ease the burden of car ownership of those in the lower and middle income group.

Many Malaysians in that income group are living beyond their means, a culture infused during the Mahathir's era of making car ownership easily available to those who hardly can afford it, just to satisfy his industrialisation programme and show the world 'Malaysia Boleh' . Removing the subsidy on petrol and diesel and providing the people with better public transport would help those foolish Malaysians to get rid of the car they can ill afford.

Those in the lower income group spent over 50% of their monthly income to service the repayment,maintenance and repair of their cars with very little left for food, clothing and medical care. Some took to crime to supplement their income.

It is a complete fallacy to think that the poor and those in the lower income group are the one who benefited from the subsidy. If you don't own a car the price of petrol or diesel will have no impact on your daily lives other than the slight increase in the costs of living, the indirect results of the higher fuel cost.

The subsidised fuel are more benefiting to the upper middle class and wealthy Malaysians, those with their posh gas-guzzling monsters and multiple cars owners.

Maybe, now is the time to teach Malaysians how not to live with a subsidy mentality.

Footnote:
(For a small country, population of 380,000, the figure for Brunei seems odd.With that figure every Bruneian visited Malaysia an average of 3 times in 2007.The only plausible explanation, those are Bruneians going to and fro to the other side of Brunei separated by Limbang in Sarawak. They were all not tourists in the real sense, went through Malaysian Immigration in Sarawak, and were included in Malaysia's fallacious and sexed up statistics as tourists). See map below.

Map of Brunei

Tuesday, March 4, 2008

The Shenanigans of Gapari

Make a brave decision on polling day: Jeffrey

Keningau: Parti Keadilan Rakyat Vice-President Datuk Dr Jeffrey Kitingan (pic) urged the electorate in Sabah to make a brave decision by voting for all PKR candidates to "stop the rot in Sabah."

Jeffrey who is contesting the State seat of Bingkor and Parliamentary seat of Keningau told a gathering of more than 1,000 people that they must reject BN leaders for turning Sabah into the poorest State despite being rich in natural resources.

He said by allowing the prices of petrol and essential goods to go up, the government had caused suffering among the people.

"Sabahans must reject all BN candidates for creating a mess in Sabah, for making the natives even more poorer by driving them out of the land they have been occupying for generations and for allowing foreigners into the country without travel documents," he said.

In responding to Chief Minister Datuk Seri Musa Aman's comments that the PKR's promises in its manifesto are unrealistic and absurd, Jeffery said it is not difficult to reduce the prices of essential goods in Sabah.

He pointed out that the root of the problem is the withdrawal of the subsidy on petrol.

Jeffery said a PKR Federal Government will use part of the huge profit of Petronas estimated to be between RM65 billion and RM100 billion due to the current high price oil in the international market.

"Why can't the Government ask Petronas to use RM10 billion a year to subsidise petroleum to help all Malaysians reduce costs in doing their business and also to help the poor alleviate their daily financial hardship instead of keeping the money.

"In this way, the country will be more attractive to foreign investors, thus creating more job opportunities for Malaysians," he added.

Jeffery said the government effected the withdrawal of the subsidy on petrol throughout Malaysia with a promise to use the money saved to improve roads in the rural areas of Sabah and Sarawak but like other promises, this was not fulfilled.

Jeffery claimed the PKR was contesting 55 seats because it realised that the people genuinely wanted to change the State Government.

Daily Express