SOMETHING TO PONDER ABOUT.....

Malaysian Government Subsidies
by Desmond
(Puchong, Selangor)
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 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 subsidyis

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), Infra-

structure (RM4.8 billion) and essential food

(RM3.4 billion). If this amount includes sub-

sidies for health services, then PEMANDU must

review the market price of medicine and pharma-

ceuticals 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 subsidyleakage? 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 not 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 sugarsubsidy 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

reach RM1.158 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?