Unconscionable oil price hikes – Abdullah govt would have fallen if in South Korea

(Speech at the DAP Public Ceramah/Consultation held at Dewan Sri Mentaloon, Residen Rasmi Menteri Besar Kedah on Wednesday, 11th June 2008)

The Abdullah government would have fallen because of the 41% to 63% unconscionable and brutal oil price hikes if he is in South Korea, which saw the new South Korean President’s popularity plunging in less than four months from a presidential victory with the biggest margin in the nation’s history to a support rate of under 20 per cent and his entire Cabinet offering to resign – after a month of mammoth demonstrations against the planned resumption of US beef imports.

Malaysians are still puzzled as to the reckless and sudden manner in which the Prime Minister, Datuk Seri Abdullah Ahmad Badawi announced the unconscionably brutal petrol and diesel price hikes, after a Cabinet Minister had given the assurance that no oil price increases were on the cards until August.

The failure to announce a holistic package of mitigation measures to cushion the most vulnerable sectors from the sharp impact of the drastic oil price increases until five days later strengthened the impression that the decision was driven more by political than economic considerations.

Was the euphoria from his Sabah visit four days earlier believing that his slew of goodies had “fixed” up the Sabah problem and stabilized his government which had been fighting speculation that large numbers of Sabah MPs were seriously contemplating abandoning the National Front ship the cause for his recklessness in suddenly deciding to announce the drastic and brutal oil price increases on 4th June?

Abdullah’s euphoria proved to be short-lived, for he had to rush to Sarawak to placate the Sarawak political leaders from Barisan Nasional, who felt doubly aggrieved from being left out of the largesses given out to Sabah as well as the adverse effects of the new oil price hikes.

As a result, even the RM2 billion austerity measures announced by the government appeared to be panicky reactions to the widespread and deepseated public anger and outrage at the oil price hikes which seemed to have taken the Prime Minister and his advisers by surprise.

The Minister or adviser who proposed a 10 per cent cut of entertainment allowances of Ministers and Deputy Ministers, for instance, should be sacked, for it had fuelled greater anger and outrage for two reasons – the paltry sum of 10 per cent cut for entertainment allowances and the revelation for the first time that Ministers and Deputy Ministers enjoy such entertainment allowances which even MPs, let alone the ordinary public, are not aware of!

All in all, the impression created is a most unprofessional and ham-fisted handling of the oil price increase crisis – which is aggravated by a lack of compassion and care for the vulnerable sectors of the society, as seen not only by the quantum of the drastic oil price hikes but also by the continuing government mindset which takes waste, extravagance, lack of accountability such as the Petronas billions and financial scandals like RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal as an acceptable part of the Abdullah administration.

Unless the Cabinet is prepared to sincerely and actively win over the support and co-operation of the Malaysian people in the fight against inflation, by involving them and their representatives in the anti-inflationary strategy and to eradicate waste, extravagance, corruption, financial scandals and establish high benchmarks of accountability and transparency which also affect Petronas, the government has only itself to blame if it is seen as completely irrelevant to the needs, sufferings and hopes of Malaysians in their daily lives.

94 Replies to “Unconscionable oil price hikes – Abdullah govt would have fallen if in South Korea”

  1. “The Abdullah government would have fallen because of the 41% to 63% unconscionable and brutal oil price hikes if he is in South Korea, which saw the new South Korean President’s popularity plunging in less than four months from a presidential victory with the biggest margin in the nation’s history to a support rate of under 20 per cent and his entire Cabinet offering to resign – after a month of mammoth demonstrations against the planned resumption of US beef imports.”
    ————————————————————–

    He is standing at the edge of a cliff………….

  2. YB Lim, if abdullah had, from day one, shown himself to be concious of the cost he incurred, protected the reserves the nation has, spend wisely and with accountibility, I would go along his austerity declaration.

    Even then, had he made announcements in this progressions:
    1. Cut salaries of Ministers first
    2. Review all corridors
    3. Cancel all paid overseas holidays of ministers,
    4. Reduce his own salary by half and allowances cancelled,

    Yes, I would have agreed with him.

    But he created damages first and then try to mitigate these damages, when I think, the damages had been greater than the savings he proposed to have. And that, to me, should not come out from the Prime Minister of any country, Korea or Malaysia.

  3. To YB Lim.

    Please help us!!!! many were forces to tighten thier belt to saves on daily food product for thier loves one which including their children many and of my relative,frens from all walks of life are trying to adapts into our country uncertainty in economic.

    I did notice that many people are interested to purchased and to get thier car installed with NGV tank and accessories just to saves a little bit on thier miles per gallon .

    But most of them are dissapointed cos nowadays the installation of the tank cost as much as RM4400 where for a full tank the mileage does not travel far ( recommended 180km to 200km / tank ) and the user need to que themself together with taxis which at least waited for 30 min to 45 min per filling, many people are worry cos the tank might turn into a time bomb due to atmosphere heat,accident from the back of the vehicles which lead to explosion

    Try to bring this up in the parliament that many poor people are unable to purchased the tank due to it cost especially poor and middle class earner.

    Please do something!!!! ….. some of the greedy businessman are finding way to steal from the poor again for the tank installation

    NGV tank should be affordable to many poor if the price sitting in between RM 1800 to RM 2200.

  4. One UMNO idiot who knows nothing recommended a 10% pay cut for Gov servants is equally as stupid. Most Gov servants’ pay are below RM2000. Only those who has been working for more than 20 years get more than RM3000 depending on category of job.

    This UMNO Gov has to go. TDM must be tried for corruption and a host of other crimes against Msians. Abdullah inherited all these from him. I don’t blame him. Just that he came from a party who has no intelligent ppl. Thus, all the mistakes.

    If the cards are right, we can pull thru this mess. But there are just too many MPs who are corrupt and incapable on the BN side. How much needs to be given for them to jump ship? I do not agree to accept such ppl but I fully support a snap election.

  5. The true fact is that the pm is not situable or qualified to be the finance minister. He is receiving the rojak type of informations and advises from his half past six ministers who do not care about the rakyat but themselves.

    Blood Suckers

    GE 13 – No matter what, we must ensure that racist umno bn do not regain the power like they had for the past fifty years.

  6. Entertainment allowances should be as per claims and should not be packaged in as part of salary which camouflage as allowances to deceive the Rakyat that they are getting low salaries as compared to other countries. The allowances wont be saved as claimed by AAB if they dont claim in the first place. I wonder how these entertainment allowances could be built into their salaries without claims unless they already know that they are going to entertain so many people that they will use up so much money every month!!!

  7. Peak Oil

    “ All the easy oil and gas in the world has pretty much been found. Now comes the harder work in finding and producing oil from more challenging environments and work areas. ”
    — William J. Cummings, major oil-company spokesman, December 2005

    “ World reserves are confused and in fact inflated. Many of the so called reserves are in fact resources. They’re not delineated, they’re not accessible, they’re not available for production ”
    — Sadad I. Al Husseini, former VP of Aramco, October 2007.

    Visit http://www.wagthedog-malaysia.blogspot.com for details.

  8. Let us recall what does the BN manifesto said during the last election (12th).

    And now, what does our PM done? Is he taking a revenge on the Rakyat just becuase we did not vote for BN.

    Since you made me (PM) lose face and now I let you suffer?

    Let us all forget about the issue asking or begging our PM to reduce the price hike. It waste our time.

    MIGHT WELL COMBINE OUR STRENGHT TO ASK HIM STEP DOWN.

    We don’t need a HERO in Malaysia right now, we only need a SAVIOUR. Are you DAP, PKR, PAS and others…….. the one?

  9. No sound minded Malaysians will ever understand Abdullah’s plan if any for the country.

    Before 12th GE, he was happily declaring corridors after corridors that cost the country hundreds of billions of ringgit. Seriously nobody can figure out where is he going to get the money from, like signing a blank cheque. Watching cronies surrounding him during the launching of the ‘soon-to-be-white elephant’ projects really made one sick and fuming. How can these mega projects given out without tender in the first place?

    Now after election he suddenly threw an economic bomb that caught everyone by surprise. Why at this time when the US is at the fringe of recession and the world is suffering from inflation due to food and fuel crisis he made such quick announcement? Is he trying to cause more slums to the country economy? Why can’t he hike the fuel price in stages so that the rakyat and business community can adjust and adapt to the increase? Overall we are still net exporter for the coming 5 yrs. Petronas will surely benefit from the increase in global fuel price. What’s the hurry if the government officials at this stage can still afford to spend RM20 BILLIONS solely for ENTERTAINMENT purposes?

    Seriously Mr PM really make him looks like Mr I-Don’t-Know-What-D-Hell-Am-I-Doing-Here in the eyes of rakyat Malaysia!

  10. Given a choice most people will prefer not to drive but rely on cheap and efficient public transport if any. Do we have a choice in the first place? The government never THINK for the majority of working class people who contribute personal income tax and hardwork to built this nation. How to be productive to the nation if we spend 4 hours daily taking the public transport?!

    What this shameful BN cares is only of their own individual pocket! Period!

    Good article taken from Msiakini:-

    Drastic cut in oil subsidies a mistake
    Yen Yen | Jun 11, 08 4:32pm
    The latest cut in oil subsidies receives strong objection from the majority of the society. The same old question re-emerged to the surface: should the subsidies be reduced/removed? Given the fact the oil subsidies are unsustainable as Malaysia would turn into a net oil importer in the near future when our oil reserves run out, and the negative impact of over-consumption of oil to the environment, the subsidies should be removed eventually in order to correct market distortions which would lead to efficient use of resources.

    Unfortunately, the argument is not convincing enough for Malaysians to agree with the removal of oil subsidies. We are not prepared to live in an economy with high fuel price. Not because that Malaysians have been long spoiled by subsidies but the absence of a well-planned and comprehensive public transportation system has forced Malaysians to rely on private vehicles for their daily activities.

    This means the high oil price is going to cost a bomb to the Malaysians who rely on private vehicle for everyday commuting. Furthermore, as the production activities of our economy rely much on subsidised oil to keep our production cost competitive, a reduced or removal of oil subsidies would lead to inflation and less competitiveness for Malaysian exports.

    This might be followed by sluggish domestic demand, unemployment and eventually economic recession. The consequences are going to be disastrous. Subsidies that aim at keeping prices low are not necessary bad policies and that they should not be introduced. Subsidies that are used properly can be very beneficial to economic development.

    Good examples would be the agricultural and export subsidies introduced in the US, Europe and South Korea. If used effectively, subsidies can help to promote industrialisation and to maintain a stable living cost for the working population.

    Judging from the current situation in Malaysia, a drastic reduction or removal of oil subsidies without good countermeasures against the possible negative impacts is itself a mistake. This is like stripping the dancers when they are not ready for a strip show.

    Reducing the oil subsidies when there is no proper public transport as an alternative for drivers, no countermeasures for inflation and the possible rise in unemployment would only bring suffering to the people. The worst is that it might trigger a recession.

    South Korea, being a non-oil producing country, cannot but let the petrol price fluctuate according to the world market price. And yet the government is able to freeze the price of public transport and utilities as part of the measures to counter inflation caused by the escalating oil price.

    As an oil producing country which has been making billions of profits from oil, I believe we could do more than just freeze the price of public transport. As others have said, we should have built an efficient, accessible and comprehensive public transportation system with the oil money earned by Petronas. We should have spent the oil money in more productive ways.

    There is also a call for building a ‘national social welfare programme’ in response to the drastic cut in oil subsidies. But the content of the welfare programme is not clear. It looks like a cash aid to the people.

    If this is the case, the money might not be used in a productive way and the programme may not be sustainable in the long-run when we run out of oil.

    P/S: Bare in mind that few days before the announcement of fuel hike the great Najib stated subsides for public transport companies will be scrapped. Does it mean Rapid, KTM, Monorail going to increase their price soon?

  11. Cut unnecessary spending , my foot!!! Internal Minister Said Albar and “minister of Kampong” mohd son of mohd are both enjoying flying with private jet and red carpet treament in Sabah now . Said Albar gave warning to those intended to jump-ship beware of being arrested by ISA, whereas Mike Tyson is as usual carrying bag loads of cash begging jump-shippers to stay. The 10% cut for the ministers is peanut compare with cost of billions of projects which these ministers are having.

  12. As long as we have Proton cars in this country, we will not be able to have an efficient public transport system.

    If the government were to upgrade the current public transport system to the level found in advanced countries (where some 70% of the population travel by bus or train), Proton will have to wind up. I am not surprised that the government, presumably wanted to protect Proton, was reluctant to do anything to improve public transport when petrol price was increased to RM1.92.

    Since Proton is not making profit, our MPs and politicians can consider getting rid of this “stumbling block” and concentrate on building a first class public transport system in the country for the benefit of the people.

  13. Most of our Malaysian ministers are only Chief Clerk of the ministry at best! If we go by meritocracy of the ability to make the right things happen, they would have no chance for their job! Some stupid minister proposed to allow government servants to take up part time job. He must be damn moronic; all companies would rush to get officers from revenue collection agencies such as custom, income tax department, municipal councils, etc.. to be their part timers to their advantage!

  14. Dear Mr Lim,
    It was quite a surprise for me yesterday when the turnout at the dewan sri mentaloon in alor star was about 600-700 people or even more.. This is certainly unthinkable in the past.. Now, more and more people seem to be showing keen interest in issues concerning politics and the society.. Many audiences there also said that this is their first time attending a political ceramah (besides during election campainging), and also their first time meeting face-to-face with DAP central leaders.. Keep it up!!

  15. One of MM’s pet projects is the national car project. In order to ensure the success and sale of Proton cars within Malaysia, MM ensured that the public transport system remains inefficient and imported cars are heavily taxed.

    People have to buy Proton and Perodua cars to move around. MM moved the government departments to a god-forsaken place called Putrajaya and built tolled highways to Putrajaya; again poor public transport system for people to use to get to and get around Putrajaya – again forcing people to use cars and pay toll to get to Putrajaya, even for a simple task.

    Everything is built in by our BN government to ensure that the rakyat spend, spend, spend.

    ‘Oil Price Hike’ – ‘A Project of the BN Government’ proudly declares a huge signboard by the side of our highway!

  16. It’s time to reacquaint ourselves with the Election Manifestos and Promises of the BN during the last GE, especially those who voted for the BN.

    Are we in the promised land yet, with all the goodies?

  17. Now you know why AAB is the MULTI PURPOSE MINISTER holding three portfolios? He wants to be PM so that he can have the last say (or the first), he wants to be the Finance Minister so that he can control the RM, RM & RM, and he wants to be the Home Minister so that he can get his hands on those who go against him! All these were premeditated!!!!

  18. stnaaron Says:

    Today at 17: 16.43 (2 hours ago)

    “I did notice that many people are interested to purchased and to get thier car installed with NGV tank and accessories just to saves a little bit on thier miles per gallon ”

    I think better you guys not to rush and jump into this to install the NGV so early before you study the maintenance procedures such as regularly cleaning the ‘nozzle’ which is the hidden cost.. etc…

    I strongly advise you book & take the NGV city cap for a long distance ride and they will tells you a complete story when you’ve feels the ‘jerking’ experiences.

  19. Dear YB LKS,

    That is what we call BN UMNO’s “Hangat2 tahi ayam or Hot2 chicken shit”…alot of hot air & Rhetorics…PM says one thing, his DPM says another then his cabinet minister says something else….yes, Talk is Cheap even with our PM, when he cannot even put his MONEY (or OUR RAYAAT’S MONEY???) where his mouth is ! Sheesh !

    Yes, what is PM doing about the Lingam’s RCI which he agreed to, after wasting our taxpayer’s money on the issue & telling us lies & MORE LIES !

    The former PM had said that he prefers to be “Charged & he will give the EVIDENCE in court” (Master Strategist – Berani buat, Berani tanggong & Berani memberi bukti) which is a fair statement.

    The present UMNO putras (wanting to be situational HEROs in UMNO ??) want to take “Potshots” at former PM (the Master Strategist), not checking their facts, not realising that their present leaders (yes-men BUFOONS), at that point in time, agreed to, were implicated, etc. (including Pak Lah) have now “CHICKENED-OUT & RETREATED”.

    Even Datuk Bandar & DBKL is continuing the “Onslaught” to the “Downtrodden Rayaat” now, to add to our woes….

    Hello, what’s new in this Bolehland Titanic which is slowly but surely SINKING !

    So PR & the peoples’ power will have to evaluate the most cost-effective counter measures to help the downtrodden rayaat to rise up above this “unending situation”.

    How about doing the NYKE ? LET’S DO IT !!!!!

  20. Even if Msia built 1st class public transport (LRT etc) facilities, another question is can Msia always maintain this in good order, given the mentality that the operation & maintenance must be by certain races only??? I doubt !

  21. One should look up to the heavens and pray that the Almighty God help us Malaysians to tide over this very difficult period of our live and that our country and our children be protected from harm and difficulties.

    And let our prayers be honest and true…

    Let us not forget our religious practices and duties. We need God more than anythng now; let us pray for divine intervention and that our prayers for all humanity would help our leaders do whatever is right and beneficial for country and people.

    May truth prevail.

  22. For the better part of the last quarter century we’ve been heading towards doom under the BN.
    The greatest problem is that many, if not most, Malaysians don’t seem to realise that.
    The writting has been on the wall for a very long time!
    They rely too heavily, far too heavily, on the bull-shit spewed out by the BN. So much so that they don’t even bother to know more about the real person behind all the bull-shitting.
    In a nutshell, what we are seeing today is the culmination of years of blind faith in the BN!
    That’s what it all boils down to.

  23. Where are all our bright and super-intellligent brains?

    Thought our country is also blessed with highly intelligent academia and leaders of industries, students?

    Can’t they contribute by way of coming up with proposals, ideas,suggestions, plans , and what not, to help the country and the people?

    They should write and publish their contributions in the media, mainstrean and/or digital….so that fellow malaysians can take learned appproaches in their daily lives.

    Well…where are you guys/gals, men/ladies??….take up the challenge. If you are good , why not share now when many are searching for directions and advice.

    The nation is only as good as you are. If you don’t do anything, there won’t be much hope for malaysia/malaysians.

    Get together, form a grouping…and make known your ideas and suggestions for the improvement and betterment of all.

  24. ALL ministers and dpm’s entertainment SHOULD have been COMPLETELY scrapped. Not just cutting 10%.

    Only in bodohland that this can ever happen where ministers and dpm’s get free personal holiday trips. It’s high time that the govt’s finances be made transparent to the public. If this cannot be made public, then the public is not required to pay income tax.

  25. Blind politics.

    Blind society.

    Blind people.

    Blind institutions.

    Blind leaders.

    Henceforth:

    Blinded by coloured policies and beliefs.

    Blinded by corruption and power-abuse.

    Blinded by misguided institutions and powers-that-be.

    Blinded by religious bigots.

    Blinded by opportunists.

    Blinded by greed.

    Blinded by misinformation.

    Blinded by pride.

    Blinded by arrogance.

    Blinded by colour and creed.

    Blinded by fast cars.

    Blinded by castles and bungalows.

    Blinded by flashy clothings.

    Blinded by paper chase.

    Blinded by what-not.

    When will we ever learn.

    When will we ever learn.

  26. “He is standing at the edge of a cliff………….” Jamesy

    is that all you got to say?? never mind that malaysians are being made to suffer from the price increase? that’s stupid!

  27. Change. And only change can change things.

    Why must government staff, especially the so-called officers and leaders be given so much benefits???

    In the private sector, workers are expected to give 100% so that their companies can grow and progress. And they earn and enloy whatever benefits that the company could afford.

    In the public sector, the workers do only the minimal. Their pay mostly contributed by tax-payers in the private sectors. And they are given all sorts of benefits and perks which are derived from tax monies. What a disproportionate situation. The contributors do not get to enjoy what the recipients got. What a contradiction!!

    The government which is elected by the people, the tax-payers sholud be made to see this and make changes accordingly.

    Only by changing the wronged policies can things be set right.

    A great political will is needed.

    Why should ministers, deputies, or whoever they are up their in government depts be given free holiday? Why should the tax-payers bear their holiday costs? What have they done to deserve all that? Workers in the private sector work even harder and are much more productive. And they have to fork out their own money to enjoy even just a trip back to their ‘kampung’.

    Government workers are known to abuse their position. From 5-star office buildings they dictate what the public should do or not to do. They use government ( the people’s / tax-payers’) vehicles to enjoy themselves. They work half-time, relax half-time. They also expect the people who pay their wages to kow-tow to them.

    They expect the government ( the people’s elexted representive) to give them free-this and free-that, freebies not known by people like you and me.

    After their retirement, they continue to enjoy some sort of freebies; as if after working in the government they have a license to get this and that.

    The government who represent us and who are elected by us should STOP giving out freebies anymore. AT ONCE, in fact. Does their term of office and work contain clauses which grant them freebies? To us all who are outside of the establishment, all these constitute abuse and wastage, corruption and mismanagement.

    They do not have the right to use public funds for their personal use. There must be accountability and transparency. There must be a stop to all form of abuse disguised as service to the public.

    TO WORK IN THE PUBLICE SECTOR IS NOT A LICENCE TO FREE RIDES.

    THE RAKYAT ARE THE PAYORS, THE YHAVE TO BE TOLD ALL THE TIME, AND BE AWARE OF THAT.

    It is time for CHANGE!!!

  28. Correction:

    In the private sector, workers are expected to give 100% so that their companies can grow and progress. And they earn and enjoy whatever benefits that the company could afford.

  29. Hellooooo…saya umNO-BN supporter. I want to live, suffer and die for umNO-BN. You all sleepy head up there can do that but i dont think i can do that anymore. Its too much for ordinary folks like us. If you ( Mr. Party Man ) continue to do this to us…..i’m afraid i have to jump ship…if not, me and my anak will be suck dry by you.

    We have suffered quietly long enough and you ( Mr. Party Man ) just dont care….but you all talking, talking, talking rubbish everyday.

    I’ve decided to follow PR for my children’s future because i care about them not like you Mr. Party Man.

    Bye bye umNO-BN. May you all rest in peace with your sinking and stinking ship. :(

    I live, suffer and die for umNO-BN. Tak boleh lagi boss, i surrender. Saya mau makan. You selalu korek. Sorry boss, i tak boleh tahan lagi. SORRY BOSS umNO-BN. 50 years i finally give up umNO-BN.
    Enough is Enough.

  30. All this price hike is for show only as someone somewhere is using our petrol money as a wager for war think about dolah visit to us long time ago it was only tip of iceberg or in malay abc

  31. sir my boss dont pay for my fare to work or back why must we the rakyat must pay outrider,car,petrol and other things for ministers, deputies as gomen told the rakyat ubah cara hidup we the rakyat want the ministers and deputies to ubah cara hidup if cant letak jawatan.(ingat lagu Shila Majid ” sama sama”)

  32. Finance Minister II, as reported in Malaysian Insider, is now talking about Malaysia’s sovereign ratings, austerity, frugality and welfare of future generations. Why didn’t he look at all these a few years back when the financial position of the government was much stronger? No he didn’t. Instead, the government continued to indulge in extravagance and spending spree. It is time to force them to account for the wastage and the astronomical growth in operating expenditure (yes, I am interested only in operating expenditure, so please don’t keep bullsh!ting us with development expenditure which is only RM40 billion).

    Subsidies payment is one of the items under operating expenditure. But the unsustainability of Malaysia’s budget is not solely due to subsidies. I dare say this as a fact. We can all debate about this if the government and Petronas are willing to open their books for public scrutiny. For ten consecutive years the government incurred fiscal deficit amounting to about RM20 billion a year when we could have been more prudent and frugal. Instead we spent like no tomorrow. I must say it is pay back time for the federal government’s irresponsibility in financial management.

    So please, there is no need for the government to teach us how to manage our income or how to handle the present difficult situation. There is nothing the government could advise because they are just a group fellows with no money sense who live a life style that is totally financed by the Treasury, including cars and free flow of petrol. Just tell us in details where the bulk of the money under operating expenditure goes. There is an item listed as “lain-lain” or “others” amounting to more than RM10 billion every year since 2006, may we know what is this for? This is not a small sum because total subsidies prior to 2007 was also about RM10 billion. Please also explain to us all the transfers, grants and the excessive growth in “supplies and services”. If you can explain to us convincingly all these, we will let you increase the price of petrol, how about it? By the way, we know a bulk of the operating expenditure also consists of salary and pension for civil servants. So there is no need for you to harp on that.

  33. The different between Korean, Indian, Mexican than Malaysian is that we are mostly domesticated by Gomen. Malaysians just have no spark, no guts and unpatriotic. The fuel price increase in India of +17% already caused a massive riot but Malaysia +40% still have not reach that kind of impact yet. Practically, Boh-Sia.

    Thanks to the “Divide & Conquer” strategy and apparently still work since liberation. The more not united the people is, the more easy things can be manipulated, simply because the gomen think…u (we) guys have no balls….!!!

  34. It has been decades since I last had the opportunity to look at our national budget. One explanation, if I may offer one, as to why our Operating Expenditure (a decent figure would be 2% of the national budget) is too high is that our civil service is bloated i.e. too big and that is because the government is the single largest employer.

    The government should seek the advice of consultants like limkamput as to how to re-structure, streamline and rationalize and save resouces and improve productivity.

  35. “There is an item listed as “lain-lain” or “others” amounting to more than RM10 billion …” limkamput

    That’s too huge a figure to be under “others”.

    Similarly, if under “contingencies” a huge figure is reported, then we need to ask why and what the “contingencies” really are. Foreign bankers especially zero in on such items and no amount of window dressing is really going to help.

  36. AAB is the worst pm since 1957. If he had just increase the fuel prices by 10%, nobody would have objected, no need to give rebates, no need to pay govt. servants’ salary twice a month, no need to etc, etc. By your rash action in reducing the fuel subsidies by such a huge percentage, your cannot blame the people for being suspicious of your hidden motives.

  37. bernadette Says:
    “He is standing at the edge of a cliff………….” Jamesy
    is that all you got to say?? never mind that malaysians are being made to suffer from the price increase? that’s stupid!

    this bernadette is really a pain in the back. What is he trying to do here other than insulting others. shut up will you.

  38. undergrad2, I don’t understand what you mean by “a decent figure would be 2% of the national budget”. Please note that in 2007, the operating exp is RM128 billion while development exp was only 40 billion.

    Yes, to some extent our Operating exp is large because our civil service is bloated. But my view is sometimes it is better to employ them (due to social and NEP reasons) and at the same time ask some of them to stay at home. That will be cheaper and also our civil service will be more efficient with less red tape. I am not talking cock here, I am serious. If the government gives me the opportunity, this is what I will advise them. Ask about 30 to 40 % of the civil servants to stay at home. Trust me; the govt finance will improve by leap and bound without jeopardising the performance of the govt service. Of course teachers, nurses and doctors are excluded. You see, recently the govt extended the retirement age of govt servants. You know what; teachers, nurses and doctors will most likely not going to accept the extension. Only the useless ones (those doing nothing other than creating red tape and disservice) will accept the extension.

  39. XIII ASEAN ****
    XOIC ****
    etc,etc

    The above are number plates of cars running around Kuala Lumpur roads.

    These cars range from Wiras to BMW’s.

    These are sold at big discounts to government officials after every major international conference in Malaysia.

    Why do we have to sell these cars when every year there is a big official conference in KL? And then buy some more new fleet of cars just to ferry dignatories to and from KLIA, plush hotels and conference venues? Do need to show off to these visitors that every conference requires a new cars?

    What is the total cost of providing these new cars every time?

    With the need to save money we hope the government would not sell off such vehicles from the next conference and reuse them. IT IS A MATTER OF CHANGING THE NUMBER which the JPJ could assist in the name of national interest.

    Also those who purchased these vehicles should re-register the number plates according to their home address. The number plates are confusing. It also may be misleading if say, one drives a XII ASEAN **** car during the XIII ASEAN conference.

  40. “Please note that in 2007, the operating exp is RM128 billion while development exp was only 40 billion.” limkamput

    Clearly something is not quite right here!

    Care to give readers the rest of the budget figures? Including the budget deficit, its size and how it is being financed, interest payable on loans relative to GDP, and exports/imports surplus/deficit and the rate of inflation (Consumer Price Index)?

    Thanks.

  41. ‘Ask about 30 to 40% of the civil servants to stay at home.’. limkamput.

    Are you serious.We have about a million civil servants and that means asking 300,000 to 400,000 to stay home.Interesting!

  42. I actually like what the truckers did back in Spain in view of the rising cost of fuel, Britain is having one this friday-monday…..

    We should gather our “balls” together somehow!

  43. The country is now locked in such a pathetic and helpless state.Why?It is because we have been governed by people who encourage waste,extravagance.On top of that,lack of transparency and accountablity,absence of responsiblity,nepotism,,red tapism,racial bigotry coupled with corruption plus other undesirable traits can very well explain why today the people are unhappy and angry.

  44. Lack of transparency and accountablity,absence of responsiblity,nepotism, red tapism,racial bigotry coupled with corruption have plagued the administration both present and the previous but the distinction is that the present has the added malaise of “drift” without anchor & direction, especially after the political tsunamy on 8th March after which the ruling elites are in a state of disarray, decisions have been made without anyone clear as to who had the greater part to play in their formulation, and when they turn out wrong, the government goes into fire fighting mode without strategic plans to go forward or backward….Against the backdrop of loming world recession, there is real cause for concern if leadership is perceived adrift lacking resoluteness to confront the challenges ahead.

  45. What happen to democracy – where the rakyat has the right to voice out their displeasure? Are the Gomen going to call in the ISA to arrest all the rakyat? Then again, it might be a good idea – don’t need to earn money for the Gomen.

  46. “‘Ask about 30 to 40% of the civil servants to stay at home.’. limkamput

    so they all stay at home because you say so? so you don’t have to pay them??! never heard of more stupid comment.

  47. What our learned friend Limkamput is trying to say is that these civil servants are having “gaji buta” anyway, so it will save a fair bit of ancillary costs (not salary) to ask them to stay at home. There will be savings on petrol, tolls, and there will be much less traffic congestion on the roads. There is some merit in this proposal – perhaps asking the civil service to halve their working hours through aternating staff on a daily basis.

  48. less traffic congestion? you sure you know what you are talking? you mean stay at home means exactly that?

    saving on petrol, tolls etc how so?? are they on some sort of expense account i.e. their employer have been paying their petrol and tolls etc? i must be living on a different planet.

    halving working hours does not mean halving costs! they are not paid by the hour.

  49. Staying at home means fewer cars on the road. Is this so difficult to understand ?

    Most civil servants DON’T have their petrol paid for by the government, except for those with government cars. Again, is this difficult to understand ?

  50. sorry bros, have to earn a living this morning. Need to work harder now to buy gas. Just filled up a honda city, a 1.3 c.c. car, and the amount is RM98 when the usual amount before the hike was about RM65. i don’t think many can cope. Will respond to you when i am free.

  51. I did some calculation and realized that between the rise in raw material and other costs, the govt actually have spend much a lot of the savings of RM15billion from the price increase. In other words there is not much savings at all. So speculation that eventually the so called ‘annual rebate’ for each car will be shortlived is very likely amounting to another increase basically. The ‘annual rebate’ is meant to placate the people for a short time only. I say at best the payment will be for only 2 years..

  52. Dear YB Lim,

    Can you bring this issue up to the Govt.?
    Can we people do something about this besides suffering in silence and helplessly accepting BN’s nonsense management of this country?
    It is very sad to see that other countries protest by their people somehow will affect drastically to their Govt. but we are just being pushed aside and having the much efficient police force standing by to fight out Peaceful protest when they should be attacking aggresively on the rising crime rates currently!
    Our cries are just being cast aside by having a new News event by our great Media to divert our attentions.
    Seriously we are tired of being treated as if we are dumb without knowing anything.
    We need serious change and action to make sure our our concerns are met and need BN to humbled and manage our Tax payers properly for every single citizens in M’sia to benefit from any infrastructres or projects.

  53. u dun hv 2 b an financial expertise frm goldmans sachs or merrill lynch to understand the term “put the money where your mouth is”,this buggers frm the cabinet is putting our money into their mouths!
    no wonder so many ppl want to join political party,get rich quick scheme though???

  54. Dollar announced “Smaller cabinet bigger mouth to feed to silence the critic.”

    The toll concession company is all owned by Malay who mismanage and manipulate the profit and loss earn from collection from rakyat using the govt. basic infrastructure. Now, why govt. step in to pay them further in the form of subsidy?

    The price of fuel will rise USD 250 per barrels next year. At that time, Dollar will already be in Sydney retired from politic sipping his coffee watching Jane playing golf.

    That’s the time when DSAI will create history to be the first great PM to steer Malaysia into achieving wawasan 2020. Every nation require breakthrough, either thru revolution like France, or war like China the rise of communist influenced by Karl Marx doctrine.

    After DSAI, who will be the next PM?

  55. Gomen advise rakyat to travel less, stay at home, spend more time with yr spouse, parents, children, siblings etc, talk / interact more, watch TV less, switch on less ACond (save electr), to make happy families for everyone.
    Isn’t this great? Blessing in disguise?? If petrol go up to RM3.30, better lah, save more lagi by less travel??

  56. Sometimes, you really wonder whether they are now trying to bankrupt the whole country so that whoever taking over the government will have hard time with limited budget to spare. Wealthiest states both Selangor and Penang have fallen into the opposition hands. So they need other cash cow to slaughter.

    Why Maybank taking over so many unknown banks in Indo? Somebody learning the same tricks from Daim?

  57. i guest its better for all of you to live in KOREA….what a stupid suggestion by DPA…..use yor head la for this one time, you as an opposition supposely push the government for a better public transports, more railways, less unneccessary transportation by roads (houliers), altenate in generating electricity…..but not to ask people for demonstration……..its costly……………………..

    I guest all of you better quit the politics and join a bintang tiga………………we choose you for stabalizing the government, to have check and balance…..not to turn over the country…….stupid people……

  58. 78 Sen hike… because ‘ the survey says Malaysian Public will turn in mass to use the public transport if the go-men increase the petrol price by 75 Sen or more’. Well, we’ll see how they are going to manipulate the ‘family feud’ concept to their own benefit…is all those had all been scripted ? The script says create the damages first then fix them ‘manipulatively’ mmm well it’s a new word I guess

  59. Take note note that of what the 2nd Finance Minister said: ‘next government’. i think BN preparing to finish up the resourses just like in Selangor & Penang before they go down?
    Can anyone do something??

    Taken from The Edge Daily:

    12-06-2008: Fuel subsidy revamp to ease burden on future generations

    PUTRAJAYA: The government could have maintained fuel subsidies by borrowing and spending but this would only result in burdening the future generation of Malaysians and the next government, said Second Finance Minister Tan Sri Nor Mohamed Yakcop.

  60. South Korea is different, i once visited Busan from Seoul, it only took 1 hr, the baggage we check in is already there, when we get down from the flight (something like air asia) but they have special bus to take us to the main terminal.

    Everything is very costly in South Korea, and the food is not so nice, many of them keep their own livestock e.g. Japanese eels.

    Most of the taxis there using Hyundai Sonata, in Malaysia it cost more than RM 100K imagine, in Malaysia our taxi driver most of them only have Proton Saga, Iswara, Waja, Perdana.

  61. What is Mahathir doing as an adviser to Patronas? Patronas belongs to all Malaysians, not to UMNO or Mahathir or anyone for their abuse.

    We demand disclosing Patronas account to the public!

    We want it NOW!

    Take it back from the blood sucking lintahs!

  62. When the rakyat are suffering so much under the pressure of high prices of goods, the ministers seem to see it fit to enjoy FULLY SUBSIDISED OVERSEAS HOLIDAYS THOUGH IN ASEAN COUNTRIES!! Hoi, MALU LA!!
    THe price of things have gone up so much that I have to postpone my engine oil change to stretch my last ringgit.
    What? still want entertainment alllowances? Hey if you have honour, ask the entertainment allowance to be completely scrapped. The economy woes we are in are the results of incompetent ministers work!

  63. Dear En Saiful,

    Can you advice how to push to government to work? Do they need to get pushed in the first place if they care for the rakyat?

    Hundreds if not thousands of public complaints regarding our poor public transport system have been written to the ministry and some published in the local papers for how many donkey years. What the gomen has done so far?

    LRT, only 2 coaches entering KLCC, pack like sardin, poorly maintained, a/c spoit, door fails to open, caused passengers to trapped for more than 1 hr(2006) due to system failure etc. KTM, jam pack, always fail, always late. Rapid bus, either late or never appear, nobody knows their time table if any, abandoned and rust under sun while they buying more using taxpayers money. KL Monorail, only two coaches, everybody incl. tourists have to get squeeze like sardin. Penang Monorail, still talking and no budget. Puduraya, looks like third world bus station causing massive jam outside the station. Konsotium etc, still speeding like no tomorrow on the highways and accidents/deaths weekly.

    So can you advice what else can the rakyat do? Do we have other alternative?

  64. Bobster, they need to do that, to claim more and further from “duit rakyat” What you all have is jus a shelf (lousy, filthy, poorly maintain, 3rd class) with that shelf they are charging the rakyat millionth (due to commission) with this increase in fuel, they have another excuse to earn more commission by saying “oh we are improving this” in fact the don’t jus a lie, maybe 1/4 of the cost of improving goes to improve, another 3/4 goes pocket lah off course! this is Malaysia, any question to them can be thwarted saying it is OSA.

  65. Like the scorpene submarine, Najis jus make sure the big fat commission are in, we don’t even have submarine dock, and the navy, maintenance team in picture?

    Like the shukoi jet, money and commission pocketed, but where are the jet, it is not yet delivered how can commision pocketed already?

    Send ppl. to space, where is the result? now tat fellow even dare write a book, but wat he doing up there? is he qualified? well, this is also commissions, all these inspired by Najis the great father of shyt. in Malaysia.

    Whatever they do, public can be easily deceived by saying we are doing for the benefit of ppl. any enquiries they said OSA. or they put u into ISA if u took to the street.

    Increasing Petrol from RM 1.92 – RM 2.70 is also for the benefit of rakyat? do u all enjoy? I think those who voted for Barang Naik party are filthy rich Malaysian who enjoy to pay more for corrupted leader.

    Alhamudilah Malaysia next year Cost will be USD 250 per barrels, who care!

  66. Dear bloggers,

    How about we make the biggest peace protest in Kuala Lumpur? We demand Pak Bodohlah step down from the PM throne and also protest the increasing fuel price. We need to show that the people of Malaysia (lower & middle income groups) are suffering with the current government policies, iron fist administration and corrupted ministers and goverment officers.

    We need government reformation that will make our country more integrity, accountability and sovereignty.

  67. Ok, Godfather and Undergrad2, let me expand a bit what I was trying to say.

    Government’s operating expenditure (OE) is going out of control. The danger with OE is it is very difficult to reduce once it is there. The salary and pension of government servants constitute one of the largest amounts. Then we have debt service charges (interest charges on loans taken earlier) and other expenses I mentioned earlier like subsidies, transfers and grants, supplies and services and one more item known as “lain-lain”. Adding all these up is about RM128 billion in 2007. All these numbers are available in the Treasury Economic Report 2007/08 available at the Treasury of Malaysia website. As I mentioned earlier, the direct subsidies, (i.e. subsidies paid of government’s consolidated fund) was about RM12 billion in 2007. This year it will be higher, as mentioned my Minister of Finance II. Be that as it may, the fiscal position of the government is not, to my mind, solely due to subsidies payment although the amount involved is getting larger. Going forward, the government must learn to be more prudent in managing its finance, in addition to just removing subsidies.

    When undergrad2 mentioned about OE being 2% of national budget, I think he was referring to the OE component of development expenditure (DE). But here I am talking about “pure” OE (RM128 billion in 2007), i.e expenditure incurred when running the operations of the federal government. This expenditure excludes project and infrastructure development which are classified under development expenditure which in 2007 was only about 40 billion.

    When undergrad2 mentioned about bloated civil service, my response was it is true. The tragedy of a bloated civil service goes beyond paying salary and pension. The damage as pointed out partly by Godfather is more than the salary and pension incurred. When a person is employed (when that person is not really needed, got it?), the liabilities is more than the salary. We have to provide him an office space, air cond, computer, telephone, stationeries, and “something” for him/her to justify his/her position. So layers and layers of red tapes and bureaucracies were created just to keep these people occupied (in economics we call this generating activities, not output). Most of these positions have no GDP creation or efficiency enhancement impact. In fact they are there to create “disservice” and caused more problems for our economy. Since we can’t sack civil servants, and also due to social and welfare reasons, it is better to pay them and ask them to stay at home. Trust me; our economy will perform better because by removing the “disservice”, we improve GDP creation capacity of the economy. I don’t recommend VSS because it can be easily abused. They will pay themselves off handsomely only to be re-employed again the moment we put our guard down. So continue to pay them salary but asking them to stay at home is the best. Indirectly we are also telling them they are parasites. Of course I don’t expect Bernadette to understand because his puny brain can’t take it.

    With regard to fiscal deficit, (i.e. Revenue minus OE and minus DE), the federal government has incurred deficit consecutively over the last 10 years amounting to about 20 billion a year. So ten years is about 200 billion. The issue I want to raise is: the government should have been more prudent and frugal when the going was good and when our economy was not subjected to so much pressure as happening now. Someone wrote in this blog once about “ants and grasshoppers story” some time back. Yes our government is behaving like grasshoppers. They have no money sense, no saving culture, can’t anticipate and can’t handle issues that have more than three variables. They want joyride all the time thinking that government’s resources are unlimited. So you may ask, what is the rationale of removing fuel subsidies? Well, the reason is not because the government want to be more prudent with its finance now. The real reason is because the government want another source of fund to support their unquenchable big spending habit. In fact, if this habit is not changed, no amount of subsidies removal will solve our problem. I am thinking what is next. Do you?

  68. limkamput, u re wrong, Dollar oledi approved the EPF contribution age extend from the previous 55? mean govt. have to contribute further for those civil servants after 55 who remained cling to get food from govt.

  69. 1975, Msia had a higher GDP/capita than S Korea, Msia also discovered oil, S Korea had no oil (til now also produce no oil)
    2007, Msia GDP/capita is less than 40 % of S Korea,
    so, who had done better economically all these years??
    Msia wan to compare with S Korea?? no way lah !

  70. saiful said vote opp to stabilize govt?? if govt no good change lah, look at how s korea progress, their rakyat not afraid to change govt, here we very scared to change, the more we scare, the worst!

  71. Why go so far, the fact that the annual General Auditor Report made yearly goes unnoticed by secretary generals of various ministries and director generals of the various government departments.The Report invariably brings sad tales of wastage,overspending and excessive bursting of budgets which need to be investigated.But no all these reports are put away to be filed away and gather dusts.The procurement budget for example is too bloody huge for a nation like Malaysia but there are there for a purpose … to provide a source for the UMNOPUTRAS to rampage and siphon it to their own pockets!
    It is not that these people have no money sense…they have come to know that by spending big, money can then be channel to their own pockets!

  72. god father,

    it is not hard to understand ‘stay at home’ means exactly that but that’s not what leekamput seems to want to say. what he really wants to say is ‘do not come to office’ which does not quite translate to ‘stay at home’ – which in turn does not quite translate to reducing traffic congestion. he is close to suggesting government employees work from home which is ridiculous. certain private sector employees may work from home on certain days to reduce costs. we’re talking public sector here.

    “We have to provide him an office space, air cond, computer, telephone, stationeries…” leekamput

    thank you for the info. we call this ‘overhead costs’. you don’t need to be an economist to know that. you need only be a housewife doing home economics.

    to suggest that ‘overhead costs’ is the major contributory factor to the hugely increased operating expenditure is stupid! plain daft.

  73. “So continue to pay them salary but asking them to stay at home is the best. Indirectly we are also telling them they are parasites. Of course I don’t expect Bernadette to understand because his puny brain can’t take it. ” leekamput

    in one word – d a f t !!!

  74. It is obvious you are not able to understand in context (and sometimes tongue in cheek) what are being discussed here. What you have is one liner here and there so far. I challenge you to write me two paragraphs on any issue you think is important for sharing and discussion. If you are really good, I will shut up. You have my word. Otherwise just keep your a** mouth shut. Your knowledge on economics is at most half-baked, nothing beyond 101 from an equally half baked university. With regard to your vocabulary, please find another word for daft. First the word is archaic and second, it is nauseating already.

    Oh, so enlightening, overhead cost. I don’t think you know an iota of what I am trying to say here. If you are so smart, explain to me all these: activities and not output, disservice, GDP creation and efficiency enhancing spending. I don’t think you can, and I don’t think you know.

  75. Yes, unconscionable it really is!!
    With the hike in electricity rates, they will set in motion increases in all & sundry that will hit the average wage earner extremely hard.
    So, all the subsequent cosmetic actions to alleviate the hardship are meaningless.
    Bottomline, Badawi does not have the average rakyat’s welfare at heart!!

  76. YB Lim,

    First of all, you have my utmost respect! I agree most if not all of what you have said so far, but somehow the fuel price hike has nothing to do with the “goodies for sabah” announced by PM. The plan to raise the fuel price has been in the drawing board long before the election. We heard it in Sabah long before the election, and tried to use this issue during the campaign. Somehow, it didn’t work to our favor.

    Your linking of the “goodies for sabah” to the hefty fuel increase, unless I misunderstood it was divisive in nature. The fuel price hike announced recently has essentially nullify the “goodies for Sabah”. Recall that it was Anwar Ibrahim who was the “czar of sabah” under Dr. Mahathir that implemented the government’s power play over Sabah.

    Under Anwar JPPS, rotating Chief Ministership ( this is against our state constitutions) and other bad elements were in place to knuckle down Sabah. So, pardon me if I don’t give a fart in space to what Anwar stands for now. He needs to apologize to the people of Sabah first before begging for the frogs to come in. We are not happy with what was done to us.

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