Prime Minister Abdullah Ahmad Badawi said, “The government had to restructure the fuel subsidy scheme after it became untenable to maintain at prevailing oil price levels, it is a difficult and agonizing decision to make.”
Anwar Ibrahim said The Oil price will reduced by RM 0.30 per liter if Pakatan comes into power without any further elaboration of how he is going to deliver all the promises in the total overall pictures of the welfare state agenda zealously preached by the KeAdilan camp which has been underperformed in its 100 days report card for the State of Selangor.
Economists argued that Politicians are the biggest culprits when it comes to prolonging the subsidy scheme as they have defended subsidies with a host of arguments, ranging from helping the poor to protecting domestic industries even though few economists will favor them for their market-distortion effect.
Whatever theoretical and rhetoric statement made, It is the real people that are in the front lines to absorb the pains of the sudden government policies changes that hit them like a deadly natural disaster.
Government financial mismanagement and misallocation of resources and the dead-weight loss of many politically linked white elephant projects and mismanagement of government revenues has often taken to the back stage like sweeping the rubbish under the carpet.
In most of the Barisan Nasional policies, political considerations always override economic sensibility.
The “Dacing Brand” KADA fertilizer in Kelantan has often landed in Southern Thailand Paddy farm; overpriced infrastructure development projects under the Privatization program or Build Operate Transfer projects had often been funded by the Finance Ministry. The Toll road operators have the prerogative to demand for government aids when they made wrong business decision, while they enjoy the high traffic flows they can raise the toll and maintenance exorbitantly at the expense of public.
The excessive exposure of the EPF fund to the Islamic bond for the over priced and overrated Malakoff IPP projects with the same person decide for the bond subscriber, bond underwriters and the bond issuer remain untouchable on the Malaysian soil!
In a well functioning market, where oil supply and demand are balanced, prices should be stable. When prices are high, however, they show that supply is not responding adequately to rising demand, and that is where we find ourselves today
The current Abdullah Administration has been severely doped by the market economy regime that uses textbook referrals in forming the overall government oil subsidy policies which is not always good for the country and its people.
The argument from the anti- Oil Subsidy regime claimed that “Oil prices are increasingly volatile as there is an inadequate supply of the commodity to cope with rising demand, while high taxes on the oil and gas (O&G) sector lower investments for new production and the improvements in energy intensity, which is the amount of energy to create one unit of gross domestic product (GDP), were being offset by rising energy consumption per capita, particularly in countries where fuel subsidies existed” has only one ultimate goal, profit maximization with very little consideration of the social and economy stability of the host country that profit them.
Barisan Nasional Government is still lacking of the best plan that would focus on the benefit of the public for the most and the longest time possible which need to revealed the fairness and social values, being the most useful, being the best workable, and being the most economical.
The wealth distribution is essential for a stable economy, because rich and poor are interdependent in any society. The rich usually are producer; the poor are laborer and consumer. So if the poor are withering away, how are the rich are going to be able to maintain their richness?
People who are totally advocate for free trade tend to ignore this fact, as the matter of fact, they loath just for hearing about it. The Market economy regime would think that it is Islamist’s (Communist’s), probably because they hate the tax brackets system that are in place all over the world,
The drastic decision made by Abdullah is a clear reflection of his indulgence with the Social Darwinism that spell the roles of the survival of the fittest where the majority marginalized community has become too transparent to be noticed as the citizen of Malaysia.
The Oil subsidy decision was merely for the sake of growth of the wealthy class while ignoring the very survival of the urban middle lower working class, the pensioners and farmers.
The most valuable asset of the nation is its people, now Abdullah administration is giving its economy the worst economy therapy in complying with the IMF and World Bank regimes that design the world financial and economic order to ensure the interests of west protected!
What’s the used of Government when it can not fulfilled its constitutional obligation to protect its own people while bowing to the pressure IMF and World Bank regimes?
By:
Alex Ong
GERAMM.org
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