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 first.
For example, govt. subsidies are being given to Independent Power Producers (IPP), so that they can supply electricity to TNB and earn profits. The govt subsidies to the IPPs are worth RM13 billion every year. These include cheaper Petronas gas supplied to them.
There is a 20-year interest free loan of RM 320 million given to SYABAS, the Selangor water company. SYABAS is also a privatized company, why does the govt subsidise it by giving it 20 years of loan, free of interest?
The total deficit the government need to cover amount to RM47 billion. The total subsidy is about RM74 million. Removing the subsidies will NOT help reducing the deficits a lot, but a lot of poor and middle-class Malaysians will be affected.... Details of subsidies are Social (RM42.8 billion), fuel (RM23.5 billion), Infrastructure (RM4.8 billion) and essential food (RM3.4 billion). If this amount includes subsidies for health services, then PEMANDU must review the market price of medicine and pharmaceuticals and compare that with the price the Ministry of Health is buying.
In 2008, global price for crude is about USD140 per barrel, and the fuel subsidy the government have to bear was RM17 million. Today the global price for crude is about USD70 per barrel, yet the govt. fuel subsidy is RM23.5 billion. Why? Have we forgotten that recently the govt has spent RM8 billion on purchasing armoured vehicles and tanks? And another RM3.4 billion for the submarine that could not dive? Idris Jala claimed Malaysia consume more fuel per capita than many countries. That is correct. But, has the government made serious effort 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 Lembaga Kemajuan Ikan Malaysia (LKIM) registry throughout the country?
And the govt is telling you that it is subsidising RM12,900 per household per year! Have we also forgotten the Auditor-General's Report that revealed the govt. actually spent RM500 to purchase 1 unit of screwdriver, or the same govt car being pumped to full tank twice in just 1 minute apart, or Port Klang Free Zone's project that has ballooned to over RM4.6 billion from original budget of RM1.1 billion?
Today, when you drive thru Damansara-Puchong Highway (LDP), you pay RM 1.60. The govt said that you get 50 sen subsidy, else it should be RM 2.10. But, LDP was built with RM 1.42 billion, with a concession period of 1996-2030. And, the govt. is paying out RM 2.6 billion every year in subsidy to the highway company. So, if the govt subsidy is removed, you will pay RM2.10 each time you pass thru LDP. So the question is, who approved and signed the contract with the highway company? Who agreed with such toll rates?
In the UK , British students paid subsidised university fees. International students there paid fees between 8000-10,000 pounds per year. In Malaysia , local students took PTPTN loans of about RM21,000 for 3-year undergraduate studies. Foreign students paid only about RM15,000-RM17,000 for the entire 3 year of studies. The govt. is subsidising foreign students so that we can become the education hub. Why use taxpayer's money to subsidise foreign students? Why foreigners can get subsidised medical care at govt hospitals?
And, it's not just govt is proposing to reduce our subsidies, we are actually already subsidising govt projects! Let's take ERL (express train from KL Sentral to KLIA) for example. Did you know that each time you use LCCT in Sepang, RM5 of your airport tax actually goes to subsidising the ERL?LCCT passengers like yourself who don't use ERL are subsidising the ERL train service! I am not bluffing you, this has been confirmed by the Finance Ministry. Why are you paying subsidy to something that you don't use?
The govt spent RM1 billion in sugar subsidy in 2009. But let's don't forget, Malaysia 's sugar is now controlled by govt's BERNAS after Robert Kuok sold off his entire sugar monopoly. So, that RM1 billion subsidy is actually for BERNAS's profits, which of course means "come out from left pocket, go to the right pocket". But remove the sugar subsidy means most food prices will go up. Our sugar price may be lower in the region, but our fresh graduates salary is also among the lowest in the region! And our food prices is already among the highest in the region. Just ask any tourist in KL if they find Malaysian foods are cheap or not.
According to Idris Jala, the government debt stands at RM362 billion and rising and may reachRM1.158 trillion by 2019 and the possibility that Malaysia may go bankrupt after the Greece footsteps. Actually this is against the statement made by Najib recently where he assures the nation that Malaysia is not affected by the Greece contagion. 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 that you can find so many tolled roads in every corner of the city?Where else you can find foreign students subsidised in universities? Where else you can you find a govt spending billions here and there, and tell 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 2 days ago, Malaysia has been ranked 102 (out of total 152 countries) in terms of average Internet speed? We are 18 times slower than South Korea ! ( Thailand at 63rd, Philippines 90th, China 76th, Spore 31st, Taiwan 36th). Do you really still want your subsidies to be cut?
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