No idea who wrote this.
Friends,
Idris Jala's proposals regarding subsidy cuts is commendable . However, he did not recommend a full "treatment" to "cure" our woes !!! You can cut and cut and cut , BUT if corruption and wasteful spending continues unchecked, we will be back to square one, maybe back to square four !!!
With PERKASA's Ibrahim Ali screaming to "protect" Malay rights, we are going the Greece 's way. He is not protecting any Malay rights -he is protecting his own rights .There are thousands of Malays who are recognised professionally in the country and overseas and claimed high positions without any political connections or "protections". He insults these people !! PERKASA only want the political rent-seeking system to continue. !! Read the article below --the truth hurts !!!
Idris Jala should have a footnote to his proposals that should read : All the subsidy cut proposals will come to nothing unless we stop subsiding corruption and rent-seeking in the country
Some of you are supporting the proposal to cut govt subsidies.... some of you are not sure... so, please read the following......
PEMANDU and Idris Jala are actually right to say that cutting subsidies could lower Malaysia ’s debts, but the cuts will ONLY BE successful if leakages from corruption are plugged beforehand.
For example, government subsidies are being given to Independent Power Producers (IPP), so that they can supply electricity to TNB and earn profits. These IPP-directed subsidies are worth RM13 billion every year and they include the supply of cheaper Petronas gas to the power producers themselves.
There is a 20-year interest free loan of RM 320 million given to SYABAS, the Selangor water company. As SYABAS is also a privatised company, why is the government subsidy via a 20-year interest-free loan necessary?
The total deficit the government need to cover amounts to a whopping RM47 billion. The total subsidy is even more staggering -- about RM74 million. Removing the subsidies will NOT help reducing the deficits a lot, but a considerable number of poor and middle-class Malaysians will undoubtedly be affected.
Details of subsidies are social (RM42.8 billion), fuel (RM23.5 billion), infrastructure (RM4.8 billion) and essential foods (RM3.4 billion). If this amount includes subsidies for health services, then PEMANDU must review the market prices of medicine and various pharmaceuticals and then compare them with the prices at which the Ministry of Health is buying.
In 2008, the global price for crude oil is about USD140 per barrel, and the fuel subsidy the government have to bear was RM17 million. Today the global crude price is about USD70 per barrel, yet the govt. fuel subsidy has ballooned to RM23.5 billion. Why? Have we forgotten that recently the govt also spent RM8 billion on purchasing armoured vehicles and tanks not to mention another further RM3.4 billion for the infamous submarine that could not dive?
Idris Jala claimed Malaysia consume more fuel per capita than many countries. That is probably correct. But, has the government made serious efforts to combat the fuel subsidy leakage?
Take fishing fuel subsidy in Sabah as example. There are 1,200 trawlers registered with the Fisheries’ Department. However, there are only 200 real trawlers (physically present), this means there are 1,000 phantom trawlers enjoying fuel subsidies. How sure is Idris Jala that similar phantom trawlers do not exist in the Lembaga Kemajuan Ikan Malaysia (LKIM) registry throughout the country? And the government has the nerve to tell us that it is subsidising RM12,900 per household per year?!
Have we also forgotten the Auditor-General’s Report exposing misappropriation in the way of outlandish government spending such as RM500 to purchase 1 unit of screwdriver, or the same government-issue car being filled to full tank twice in a space of 1 minute apart, or Port Klang Free Zone’s project that has escalated to beyond RM4.6 billion from the original budget of RM1.1 billion?
Today, when you drive through Damansara-Puchong Highway (LDP), you pay RM1.60 at the toll. The government said that you are subsidised at RM0.50 else, it should costs RM 2.10 to use the highway. But here’s where the corruption begins: LDP was built with RM1.42 billion, with a concession period of 1996-2030 but the government pays out RM2.6 billion every year in subsidy to the same highway company. What this means is that once the government subsidy is removed, each usage of the LDP will cost you RM2.10. So the question is who approved and signed the contract with the highway company? Who agreed to such toll rates?
In the United Kingdom , British students pay subsidised university fees. International students there paid fees from £8,000 to £10,000 per year. In Malaysia , local students take PTPTN loans of about RM21,000 for 3-year undergraduate studies. Foreign students pay only about RM15,000-RM17,000 for the same duration of study. The government is subsidising foreign students so that we can become the education hub. Why use taxpayer’s money to subsidise foreign students? Why can foreigners get subsidised medical care at government hospitals? And, it’s not just the government that is proposing to reduce our subsidies; we are actually already subsidising government projects!
Let’s take the ERL (express train from KL Sen tral to KLIA) as another example. Did you know that each time you use the LCCT in Sepang, RM5 of your airport tax actually goes to subsidising the ERL? LCCT passengers like you and I who don’t use ERL are subsidising the ERL train service! No kidding – this was confirmed by the Finance Ministry. Why are we paying subsidies for a facility that we may or may not use?
In 2009 the government spent RM1 billion on sugar subsidies even though Malaysia ’s sugar is now controlled by BERNAS following Robert Kuok’s sale of his entire sugar monopoly. In plain English that RM1 billion subsidy is specifically meant as BERNAS’ profits, which of course suggests that “what comes out from the left pocket, goes into the right pocket.” Of course removing the sugar subsidy means most food prices will go up. Our sugar prices may be lower than most others in the region, but think again – our fresh graduates’ salaries are also among the lowest also! Yet on the other hand our food prices are among the highest in the same region – any tourist in Kuala Lumpur will be able to tell you if by comparison Malaysian foods are or aren’t cheap.
According to Idris Jala, the government debt stands at RM362 billion and still rising and may reach RM1.158 trillion by 2019. The possibility he raised is that Malaysia may go bankrupt following in the footsteps of Greece . Actually this is counter to Najib’s own statement recently where he assures the nation that we are not affected by the Greece contagion. So why the contrast?
Actually, it is true that Malaysia is one of the most subsidised nations in the world. But think again, where else in the world can you find endless tolled highways in almost every corner of the city? Where else can you find foreign students subsidised in universities by the government? Where else can you get a government who can spend billions here and there, and yet warns you that “we are going bankrupt” because of subsidies?
Last week, we were told that Malaysia is 10th most competitive country in the world. But has anyone told you that just 2 days ago, Malaysia has been ranked 102 out of a total of 152 countries in terms of average Internet speed? We are 18 times slower than South Korea while Thailand is at 63rd, Philippines 90th, China 76th, Spore 31st, and Taiwan 36th.
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