Political effects from smartphone rebate

Originally, the smartphone rebate was limited to the purchase of a 3G smartphone not exceeding RM500. However, since the general election is approaching, under the public's fierce opposition, the Cabinet agreed not to set a price limit and all qualified youths are now free to buy their dream smartphones.

Political leaders might think that the the sum of RM300 million allocated for the Youth Communication Package offering a one-off rebate of RM200 to youths aged 21 to 30 years with a monthly income of RM3,000 and below for the purchase of one 3G smartphone, which is promised in the 2013 Budget, is actually a people-friendly plan.

Most importantly, political effects must be achieved after the money is spent and thus, the criticism of another sharp U-turn on policy could be ignored as meeting the people's wishes is more consistent with political considerations.

Humiliation at being taken for a ride

The initial purpose of the Malaysian Communications and Multimedia Commission's (MCMC) to set the price limit at RM500 was to assist low-income youths in rural areas so that they could use smartphones and make good use of the Internet to access to information. And those who could afford expensive smartphones would not, after all, treasure the RM200 rebate.

However, the price limit was too low and RM500 was not enough to buy a good smartphones. Thus, some applicants took it as a humiliation.

The price limit is now revoked but the move has exposed some loopholes.

Firstly, limiting the price of smartphone could lock the target at low- and middle-income youths and help them connect to the Internet era. Revoking the price limit, however, will encourage some young people to purchase expensive smartphones and sign up data plans costing more than RM100 per month and this would increase their financial burden.

Secondly, although the rebate is opened to youths aged 21 to 30 years with a monthly income of RM3,000 and below, applicants are not required to summit documents to prove their salaries. This would allow fraud or identity embezzlement. The sale of the RM200 book voucher online last year should be a lesson learned.

Phone dealers recognise the voucher, not the person. Some applicants might resell the rebate vouchers or smartphones and some might even work with dealers to forge documents and gain rebates from the government.

Thirdly, it has deviated from the government's initial intention as children of the rich are also entitled to the rebate.

The government introduced the RON95 petrol in September 2009, and let the price of RON97 petrol to float according to market prices, to prevent rich people who drive big cars from enjoying the subsidy. The BN government had also criticised the Pakatan Rakyat state government for distributing aids indistinguishably, but it is now making the same mistake itself.

Many people think that it is a waste not to enjoy the rebate and thus, the rebate has received an enthusiastic response, with many flooded and paralysed the MCMC website since it was opened for application.

The BN's wishful thinking is to benefit 1.5 million youths with the RM300 million allocated for the scheme and if it is converted into votes, the number would be very impressive, even if only half of them vote for the BN. And thus, the sum of money is worthy of spending.

With such a thought, it is believed that the RM500 aid for poor families and RM200 aid for single Malaysians would also be relaxed. The infinite extension of the application deadline is a sign.

The next three months are time to distribute money to sizzle the general election. However, aids and subsidies are actually the people's tax which should not be used for political purposes.

If the government squanders because of the election, the people will eventually be the one who pays the price of it!

-Sin Chew Daily