Malaysian, get ur money ready. Now u have to plan about ur financials again.
PEMANDU, a government think tank led by Minister in Prime Minister’s Department Idris Jala tasked with formulating proposals to reduce the country’s government subsidy budget, has recommended to gradually cutting subsidies in this few years coming.
Idris Jala said it is aimed at saving up to RM103 billion during the period to partially repay the nation’s huge debt and address the fiscal deficit otherwise Malaysia will be bankrupt by 2019 .
Among the subsidies that will be cut are fuel, electricity and toll, as well as for other staples like sugar, cooking oil and flour.
For fuel, the price of petrol and diesel will initially be raised by 15sen per liter and 10sen per liter respectively. Subsequently, petrol and diesel will cost 10 sen more in every six months. So here are the prices :
- Current 2010 Price – RM1.80 per liter RON95
- Q3/Q4 2010 Price Hike – RM1.95 per liter RON95
- Jan 2011 Price Hike – RM2.05 per liter RON95
- July 2011 Price Hike – RM2.15 per liter RON95
- Jan 2012 Price Hike – RM2.25 per liter RON95
- July 2012 Price Hike – RM2.35 per liter RON95
- Jan 2015 Price Hike – RM2.85 per liter RON95
For other staples, price of sugar and flour will each increase 20sen per kg for a start. Subsequently, sugar will cost 20sen more in every six months until 2012, while flour will cost 25sen more next year. :
- Current 2010 Price – RM1.65 per kg sugar / RM1.35 per kg flour
- Q3/Q4 2010 Price Hike – RM1.85 per kg sugar / RM2.05 per kg flour
- Jan 2011 Price Hike – RM2.05 per kg sugar / RM2.30 per kg of flour
- July 2011 Price Hike – RM2.25 per kg sugar / same
- Jan 2012 Price Hike – RM2.45 per kg sugar / same
- July 2012 Price Hike – RM2.65 per kg sugar / same
Wait, there are some more of the recommendations:-Cooking oil will increase by 15 per cent initially before rising another 15 per cent in 2011 and five per cent in subsequent years until January 2014.
- Reduction of gas subsidy, resulting in an increase in electricity tariffs. However, households that consume less than 200kWh will not be affected.
- Toll rates to increase in mid-2010 as per concession agreement except for highways without alternative toll-free routes.
-Outpatient treatment at public hospitals to be increased from RM1 to RM3. In-patient treatment will also increase, depending on the wards (Class One, Two or Three), from between RM3 and RM80, to between RM6 to RM160.
-Text book loan scheme and tuition subsidy aid to be abolished. Students will also have to pay for public examination fees.
-Foreign students will pay full fees at public universities.
-Local undergraduates and postgraduates to pay more in student fees, ranging from RM300 to RM800.
So these all were among the recommendations made by Idris Jala and his team. However, the Prime Minister, Najib said this not being finalized yet. He said more studies were needed before subsidy cuts could be introduced.
Well, Idris Jala, u speak of Malaysia going bankrupt because of all the subsidies by the government, and not for other reasons. I have lost respect for u. After all, you have done some good work in MAS. U was my idol.
Idris Jala said the government would focus on big ticket items such as fuel, electricity and toll to achieve the savings, but unfortunately, he failed to focus on the biggest ticket items – massive corruption, mismanagement, extravagance and lack and accountability. This is what they should focus at the first place and only then they should come to us and talk about removing the subsidies.
Attack the disease, not its symptoms.
Say if Pak Mad is 58 years old and if he feels the pain coming from his kneecap, the solution is to take the medicine in glucosamine and chondroitin for six to 12 weeks perhaps, not just relying on painkillers.
Put it differently, Idris Jala's proposal of subsidies withdrawal must also be matched by a clear plan on how to fight corruption, leakages in the public sector and others as well. Otherwise, all the cut money from subsidy will also be gone just like that.
Idris Jala, u should be able to tell the truth to the Najib Razak that corruption and mismanagement have got to stop. Tell that the government needs to hire the best, the potential, not the big mouth.
And please stop saying that the government was too kind by subsidizing around RM12,900 per household a year. I didn't know that the government was so kind as to subsidize each household with RM12,900 a year with OUR OWN TAXPAYERS MONEY.
Say if we buy military weapon at real market price, without commission to anybody, we would have save billions of dollars. Say if we stop the not-so-functional national service, also billions can be saved. Say if we stop the mismanagement of PKFZ, Sime Darby, Perwaja steel, POS Malaysia, Mohd Khir Toyo, Proton, MAS, maybe trillions can be saved.
Any rational and thinking Malaysian will agree that we need to bite the bullet, that we have to pay more as some subsidies have to be reduced or withdrawn. But don't expect the public to sit back uncomplaining when the VIPs can waste public money by taking those useless jumping toads on paid holidays overseas. Or waste hundreds of millions of ringgit on armoured vehicles. U show us that the government is also biting the bullet, then u can try to convince us.