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Some of the Asian government fuel subsidies are featured in the table above.
Despite Indonesia's price increase in May, they are surprisingly still the cheapest in the region. And China comes in as the second cheapest in Asia. That's not fair, they have so many more people and thus so many more vehicles on the road!
And third in line is us in Malaysia.
In the Sun article today, it claims that Petronas paid our goverment over RM336 billion over the last 33 years, thats RM10 billion a year. So the big question is why Petronas is unable to help absorb the rising cost of fuel despite their great profits.
Let's watch the fireworks in parliment!!
Source : Sun
12 comments:
I'm so fed up abt this subsidy issue.
Pls go ask ANY well-learned Economist if subsidies can be made to work well in the long run, in a Capitalist nation. Esp one who rely on Global trades. I shall not bore anyone here with details. Just Google and ye shall find...
IMHO, ALL subsidies have to be temporary, and MUST disappear as soon as possible. But this does not mean that they're merely removed and nothing else is done. Some other SOCIAL POLICIES have to be put in place to help mitigate the impact of these removals.
I fully support the *slow* removal of all our subsidy schemes, with new social policies being introduced as a counter-balance.
This shd be how we prepare ourselves, our nation, OUR ECONOMY, to be able to grow further.
Because we abhor pain, we refuse to go see the dentist to take care of our rotten tooth. We continue swallowing pain-killers.
Why cant we all get this into our heads? Since when is spoon-feeding ever good in the long run? Just look at what happened to the NEP.
Case in point:
If my govt is giving away free petrol for whenever I want it (my country floats on a huge pool of oil), why shd I even care if the public transportation system is broken? Why shd I even THINK abt taking public transport? I'll just go buy a cheap car and putt along to wherever I want to go.
It this the lifestyle we want our children to practice in the future?
But, had our petrol been priced at RM3.50/L, I'm sure many of us wld prolly sell our 3rd car and take a serious look at public transportation. We're sure to plan our excursions to Tesco/Giant/Carrefour to be more periodic rather than impromptu.
We will want to ensure that we upgrade our public transportation system to be as efficient as possible so that we can continue with our 'go-anywhere-anytime' lifestyles.
In the end, with a SOCIAL POLICY of having a highly efficient public transportation system, shd we really care if the price of crude oil jumps to USD5,000/barrel? (USD futures, 1 USD = 1 Yen)
How well shielded wld our economy be when that time comes?
End, case-in-point.
So, we shd not be decrying our govt for decreasing our petrol subsidy, we shd be BANGING THEIR TABLES on what they're going to do abt improving our public transportation system, as a start. What other social policies are they bringing to the table to alleviate all these?
Why are we merely opposing a justified but unpopular decision instead of pushing our govt to be more imaginative in running our country?
This is a zero sum game, ppl! If we dont bite the bullet now, it may hit us and prolly cause us bodily harm later.
I'm really sad that so many (who call themselves) bloggers missed the forest from the trees. So many merely write abt this 'unfair' price increase without drilling down to the whys and hows we shd pressure our govt to respond.
Pray tell, why shdnt we 'shoot the messenger' in this case? The 'messenger' is sending all wrong/skewed messages to the masses. Aint it amusing that our thinking continues to be as reactive as our fore-fathers?
PS. My Kompressor 'guzzles' less than 8L/100km of petrol. And I will be ok with RM3.50/L petrol.
XEQ.
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