Price hikes: The poor need a lifeline, not empty calls to support subsidy cuts

With the impending price increase of RON 95, a round of price hikes involving other goods is also imminent. Deputy Prime Minister Muhyiddin Yassin has urged the general population to be thrifty and to do some belt-tightening.

But for the nation's poor, the way the belt is being tightened, it is almost to suffocation point and they need oxygen and a life-line. Not empty exhortations for austerity and frugality, while the rich and the well-connected become even wealthier.

Muhyiddin's call to the public to accept what he described as inevitable was backed up by the Second Finance Minister Ahmad Husni Mohamad Hanadzlah. Husni was even reported as urging the public to support the government's subsidy cuts.

But critics argue there is no reason why the public must continue to support a government that is incompetent and lacks the economic know-how to manage the nation's coffers.

PAS assemblyman for Titi Serong Khalil Idham Lim was among those who slammed Husni for having the gall to urge the public to support the government's bid to further burden them, saying it was height of perverse logic.

To Khalil, the nation's economic woes show that BN and particularly Prime Minister Najib Razak severely lacked capability in managing the nation's finance. If they could not do that, then how could they look after and safeguard the welfare of the people.

"Najib's People First slogan means that the People are the First to suffer in order for the BN elite and cronies to amass wealth," said Khalil.

High compared to other oil producer nations

The PAS leader's accusation may not be unjustified. Being a petroleum-producing country, here is how the price of petrol in Malaysia stack up against other petroleum-producing nations in the world's list of petroleum-producers:-

1. Malaysia
Price of petrol: RM1.90
Ranking: 27th

2. Qatar
Price of petrol: RM0.75
Ranking: 22nd

3. Oman
Price of petrol: RM1.00
Ranking: 28th

4. Egypt
Price of petrol: RM1.06
Ranking: 29th

5. Iran
Price of petrol: RM0.35
Ranking: 8th

The rakyat must take possession of their own economy

Khalil also questioned Najib's convenient ommission of the cash rebate mooted last year to assist the low-income groups to cope with the petrol price hikes.

Under that plan, Najib had proposed motorbikes below 250 c.c. be entitled to RM54/- annual cash rebate of petrol and for cars below 1,000 c.c. to receive RM126/- annual cash rebate.

Although a pittance, it still mattered to the poor, said Khalil, and it was wrong for Najib and the BN to pretend not to remember now. The PAS leader also questioned why IPPs (Independent Power Producers) are given massive amounts of subsidies.

"The problem facing Pakatan Rakyat is that many of the people think that the government is the master. The public does not realize that it is their money and the people's money must be used for the people's welfare and benefit. They must snap out of the mentality that it is the BN who is giving them handouts," Khalil Idham told Malaysia Chronicle.

The Malaysian government derives its income from corporate and personal income tax, quit rent, assessment, stamp duty, real property gains tax and so on. This revenue is meant to be spent on running the government in a prudent way and on projects that should benefit the people.

But often, there is huge wastage at the civil service and administrative levels, for example over-bloated staff and 'First Lady' Rosmah Mansor's First-Lady-Of-Malaysia Department in Putrajaya.

Then, there are development projects that are designed to benefit cronies or are unnecessary such as the Myemail project.

Memories of Fuel Debate 2008

Nonetheless, the BN-controlled mainstream media has always given the impression that the people are beholden to the government and not the other way round. The way the message has been conveyed by the MSM, the people deserve whatever crumbs the government throws at them.

Pakatan Rakyat's economic reform blueprint Buku Jingga has been ridiculed by BN leaders, but despite constant offers, Najib and team have refused to debate economic issues with Opposition Leader Anwar Ibrahim, a former finance minister.

Najib's response was a tad arrogant. He said there was no need for trivial matters, but surely the economy cannot be treated lightly.

In 2008, following a hike in fuel prices, then-information minister Ahmad Shabery Chik had been tasked to debate Anwar. A skilled orator, Anwar won hands down and perhaps that is the reason why Najib wants to avoid any debates with Anwar.

Najib is actually quite a good speaker but in matters economic, he needs to be prepped despite holding a degree in industrial Economics from the UK.

It is undeniable he never got the chance to practise his training and gauging by the sinking results show in the nation's economic performance, he did not learn much from during his student days. - Malaysia Chronicle