Prime Minister Datuk Seri Najib Tun Razak should be praised for cutting subsidies even though the political cost may be high.
Today, he announced that the price of RON 95 petrol and diesel will go up by five sen while that of RON 97 petrol will be subjected to a managed float which will fluctuate according to world prices.
The price of sugar went up by 25 sen per kg and that of LPG was up by 10 sen a kg.
He gave three reasons to justify the reduction in subsidies - the subsidies benefitted foreigners and wealthier Malaysians; the subsidised prices of some products encouraged smuggling; and thirdly "unless the government reduces our fuel and sugar consumption, we face potentially serious consequences as a nation".
Previous administrations had been reluctant to reduce subsidies even though economists and those with common sense could tell anybody who cared to listen that the system and culture of subsidising could not be sustained.
This was because any reduction in subsidies would result in an increase in prices of certain goods which would affect the majority of the population, especially those earning low and even middle-level incomes.
Since this would affect a large number of Malays, previous governments did the politically-correct thing - don't fix it if it ain't broken yet and just passed the buck to some sucker in the future.
But they were just postponing the inevitable - the cost of subsidising has risen so high that the opportunity cost of it is incalculable. If I'm not wrong, the cost of subsidies in the annual Budget is about as much as the amount allocated for development projects.
Much of the Government's revenue comes from Petronas and for the next few years, Petronas can still make plenty of money. But inevitably, the day will come when Malaysians will spend more money on petrol than what Petronas makes from its exports i.e. Malaysia will become a net importer of oil. That is when all hell will break loose.
Top Petronas managers have warned previous Governments about this doomsday scenario before, but previous Prime Ministers did the politically-correct thing - don't do anything and let their successors worry about the issue.
Well, their successor did exactly that - worry about the issue - and he has actually done something about it.
The people will feel the pain, the Opposition politicians will play up the issue, some votes will inevitably be lost, but Najib - like it or not - has done the right thing.
There is an old saying that a stitch in time saves nine. It is very apt for the current situation.
What Najib did will ensure that the finances of the nation will not be in dire straits years from now (when he may not even be the Prime Minister). It will benefit Malaysia and Malaysians.
His move to reduce the subsidies also reveals another thing - the general election will not be called in the next six months or so.
Thursday, July 15, 2010
Tuesday, July 6, 2010
Fight for the Malay heartland
The battle is on between Pakatan Rakyat and Umno for the hearts of the Malays in rural areas because this category of voters will decide who forms the next government.
It is highly probable that the Pakatan leaders know they have most of the urban Malays on their side and as the recent Hulu Selangor by-election showed, the rural Malays - who are still tuned to and are influenced by Government-controlled television stations rather than be swayed by the numerous blogs offering alternative news in the Net - are still backing Umno and Barisan.
What Pakatan will try to do is attempt to convince the rural Malays that they have been left out of development and progress that can so obviously be seen in urban areas. Urban folks have benefitted from the Barisan government's hand-outs and projects, etc, and they are far richer and live in bigger mansions than the rural Malays who still sleep in crumbling wooden kampung houses and live a hand-to-mouth existence.
In Hulu Selangor, observers noted, Umno was still strongly supported in the Felda schemes and that was one of the chief reasons that Barisan won the by-election in April.
Thus it is not surprising that Suara Keadilan recently ran a front-page story alleging that Felda is bankrupt.
This is a stab in the heart of the Malay heartland - winning over the Felda settlers carries more symbolic weight as the Prime Minister Datuk Seri Najib Tun Razak's father, the second Prime Minister, was instrumental in creating the Felda schemes in the first place.
Though it is unlikely that PKR can show evidence that Felda is indeed bankrupt, the damage has been done - which is probably the intention in the first place. Plant a seed of doubt and watch it sprout and grow - I think that's PKR's game plan.
Not only that but by having the Home Ministry 'ban' the Suara Keadilan (actually the publishing permit expired and was not renewed), another political issue is created.
The Barisan Nasional government must be wary of such trickery and not fall into cunning traps set by Pakatan.
It is highly probable that the Pakatan leaders know they have most of the urban Malays on their side and as the recent Hulu Selangor by-election showed, the rural Malays - who are still tuned to and are influenced by Government-controlled television stations rather than be swayed by the numerous blogs offering alternative news in the Net - are still backing Umno and Barisan.
What Pakatan will try to do is attempt to convince the rural Malays that they have been left out of development and progress that can so obviously be seen in urban areas. Urban folks have benefitted from the Barisan government's hand-outs and projects, etc, and they are far richer and live in bigger mansions than the rural Malays who still sleep in crumbling wooden kampung houses and live a hand-to-mouth existence.
In Hulu Selangor, observers noted, Umno was still strongly supported in the Felda schemes and that was one of the chief reasons that Barisan won the by-election in April.
Thus it is not surprising that Suara Keadilan recently ran a front-page story alleging that Felda is bankrupt.
This is a stab in the heart of the Malay heartland - winning over the Felda settlers carries more symbolic weight as the Prime Minister Datuk Seri Najib Tun Razak's father, the second Prime Minister, was instrumental in creating the Felda schemes in the first place.
Though it is unlikely that PKR can show evidence that Felda is indeed bankrupt, the damage has been done - which is probably the intention in the first place. Plant a seed of doubt and watch it sprout and grow - I think that's PKR's game plan.
Not only that but by having the Home Ministry 'ban' the Suara Keadilan (actually the publishing permit expired and was not renewed), another political issue is created.
The Barisan Nasional government must be wary of such trickery and not fall into cunning traps set by Pakatan.
Monday, July 5, 2010
All mixed up
Malaysia is stuck in a most peculiar situation currently.
Just the other day, I was listening to the radio while driving and the deejays in their community message said something about Malaysians having to live together in harmony and peace, etc.
Back home, I picked up the newspaper and there was a story about Perkasa, the Malay-supremist NGO, urging the government not to bow to the demands of the non-Malays.
Perkasa, which is supported by none other than the former Prime Minister Tun Dr Mahathir Mohamad, has been more actively fighting for the rights and privileges of the Malay bumiputras than even Umno, the political party that is supposed to represent and protect the Malays.
At the same time, the Prime Minister Datuk Seri Najib Tun Razak is still going on his walkabouts, playing Chinese chess with the Chinese and selling his concept of 1Malaysia to anybody who cares to listen.
Perkasa is playing the racial card - something that Umno normally does - and alienating the non-Malays while the president of the Malay party and Prime Minister of the nation is trying to reach out to non-Malays who have been alienated.
The signals are obviously mixed up and if the people are totally confused, can they be blamed?
Who is the average Malaysian supposed to listen to? The racial/racist chants of Perkasa - supported by an ex-PM - or the repetitive assurances of the current PM that the rights of the non-Malays will be protected?
The danger is that the non-Malays may get so fed up and dump both Perkasa and Umno (or the Umno-dominated Barisan Nasional) and support Pakatan Rakyat all the way.
That leaves Umno having to win Malay support to stay in power. And standing in their way will be PAS, the Islamic party that had vowed to set up an Islamic state in the past but that has in recent times been rather accommodating to non-Muslims.
Are you confused by now? I honestly don't blame you.
As I said before, the signals are all mixed up.
Just the other day, I was listening to the radio while driving and the deejays in their community message said something about Malaysians having to live together in harmony and peace, etc.
Back home, I picked up the newspaper and there was a story about Perkasa, the Malay-supremist NGO, urging the government not to bow to the demands of the non-Malays.
Perkasa, which is supported by none other than the former Prime Minister Tun Dr Mahathir Mohamad, has been more actively fighting for the rights and privileges of the Malay bumiputras than even Umno, the political party that is supposed to represent and protect the Malays.
At the same time, the Prime Minister Datuk Seri Najib Tun Razak is still going on his walkabouts, playing Chinese chess with the Chinese and selling his concept of 1Malaysia to anybody who cares to listen.
Perkasa is playing the racial card - something that Umno normally does - and alienating the non-Malays while the president of the Malay party and Prime Minister of the nation is trying to reach out to non-Malays who have been alienated.
The signals are obviously mixed up and if the people are totally confused, can they be blamed?
Who is the average Malaysian supposed to listen to? The racial/racist chants of Perkasa - supported by an ex-PM - or the repetitive assurances of the current PM that the rights of the non-Malays will be protected?
The danger is that the non-Malays may get so fed up and dump both Perkasa and Umno (or the Umno-dominated Barisan Nasional) and support Pakatan Rakyat all the way.
That leaves Umno having to win Malay support to stay in power. And standing in their way will be PAS, the Islamic party that had vowed to set up an Islamic state in the past but that has in recent times been rather accommodating to non-Muslims.
Are you confused by now? I honestly don't blame you.
As I said before, the signals are all mixed up.
Saturday, June 19, 2010
Huge ruckus over RM1
PKR's MP for Batu bit a cop some time back and just the other day he discovered that he bit off more than he could chew.
Due to no fault of his, Tian Chua's position as MP is hanging in the balance simply over the interpretation of a rather straightforward phrase - "not less than RM2,000".
Balding lawyers, who have been trained to split whatever hair they have left over definitions, are now divided over whether Tian Chua has been disqualified as an MP because he was fined RM2,000, in default two months' jail, for biting the cop.
Ironically, the fine was reduced by High Court judge Datuk Ghazali Cha from RM3,000, in default six months' jail, because he did not want a by-election to be held.
Now, the quibbling has spilled over to involve the Election Commission and the Dewan Rakyat with the Commission passing the buck to the august House to resolve.
Legal precedence and case history suggest that a by-election has to be called because, as veteran lawyer-politician Karpal Singh said, Menglembu MP Fan Yew Ting had his seat declared vacant by the Dewan Rakyat Speaker in 1975 after he was fined RM2,000 under the Sedition Act.
It would be really tragically comical if the learned judge was not aware of the implications of Fan's case. Has the quality of the judiciary become so deplorable?
Article 48(1)(e) of the Federal Constitution states that an MP is disqualified if he is convicted of an offence and jailed for not less than one year or fined not less than RM2,000.
The debate now is whether the phrase "a fine of not less than RM2,000" means a fine of RM2,000 and above or RM2,001 upwards.
During current inflationary times, one ringgit does not buy many things, but it looks like Tian Chua's case is causing a huge ruckus - and creating legal and political history - over a buck.
The question to ask is: "Where does the buck stop?"
Due to no fault of his, Tian Chua's position as MP is hanging in the balance simply over the interpretation of a rather straightforward phrase - "not less than RM2,000".
Balding lawyers, who have been trained to split whatever hair they have left over definitions, are now divided over whether Tian Chua has been disqualified as an MP because he was fined RM2,000, in default two months' jail, for biting the cop.
Ironically, the fine was reduced by High Court judge Datuk Ghazali Cha from RM3,000, in default six months' jail, because he did not want a by-election to be held.
Now, the quibbling has spilled over to involve the Election Commission and the Dewan Rakyat with the Commission passing the buck to the august House to resolve.
Legal precedence and case history suggest that a by-election has to be called because, as veteran lawyer-politician Karpal Singh said, Menglembu MP Fan Yew Ting had his seat declared vacant by the Dewan Rakyat Speaker in 1975 after he was fined RM2,000 under the Sedition Act.
It would be really tragically comical if the learned judge was not aware of the implications of Fan's case. Has the quality of the judiciary become so deplorable?
Article 48(1)(e) of the Federal Constitution states that an MP is disqualified if he is convicted of an offence and jailed for not less than one year or fined not less than RM2,000.
The debate now is whether the phrase "a fine of not less than RM2,000" means a fine of RM2,000 and above or RM2,001 upwards.
During current inflationary times, one ringgit does not buy many things, but it looks like Tian Chua's case is causing a huge ruckus - and creating legal and political history - over a buck.
The question to ask is: "Where does the buck stop?"
Sunday, May 30, 2010
All is not well in MIC
Though the turn-out for the Gerakan Anti-Samy (GAS) meeting today at the Mines Convention Centre in Seri Kembangan was poor, it does not mean that all is well in MIC.
Party president Datuk Seri S. Samy Vellu, who also sacked secretary-general S. Murugessen for standing up and criticising him, must realise that although he has the power to sack his enemies and replace them with friends, it is the party - and the Indian community - that will suffer.
By sacking his enemies - MIC Central Working Committee members K.P. Samy, G. Kumar Aamaan and former Petaling Jaya MIC Division Chief V. Subramaniam or Bharat Maniam -before Murugessen was kicked out, Samy may be able to cling on to power. But at what cost?
The Indian community are watching the events unfolding like a bad Hindi movie but the scenes missing are the joyous moments of singing and dancing. The Indians who, more often than not, feel they have been discriminated against by Government policies and have been left out of economic progress have nothing to be joyous about. Especially when the political party that purportedly represents them seems to be heading to self-destruction.
Samy may end up still in control of a party that means little to the Indian community and Malaysian society. And being king of a little kingdom, Samy could still spew out a lot of hot air and GAS, but the dwindling audience would slowly leave the cinema hall before the movie ends.
Party president Datuk Seri S. Samy Vellu, who also sacked secretary-general S. Murugessen for standing up and criticising him, must realise that although he has the power to sack his enemies and replace them with friends, it is the party - and the Indian community - that will suffer.
By sacking his enemies - MIC Central Working Committee members K.P. Samy, G. Kumar Aamaan and former Petaling Jaya MIC Division Chief V. Subramaniam or Bharat Maniam -before Murugessen was kicked out, Samy may be able to cling on to power. But at what cost?
The Indian community are watching the events unfolding like a bad Hindi movie but the scenes missing are the joyous moments of singing and dancing. The Indians who, more often than not, feel they have been discriminated against by Government policies and have been left out of economic progress have nothing to be joyous about. Especially when the political party that purportedly represents them seems to be heading to self-destruction.
Samy may end up still in control of a party that means little to the Indian community and Malaysian society. And being king of a little kingdom, Samy could still spew out a lot of hot air and GAS, but the dwindling audience would slowly leave the cinema hall before the movie ends.
Saturday, May 29, 2010
Samy Vellu hit by GAS attack
GAS what? Another component party of Barisan Nasional is going through upheaval.
There seems to be a little revolt going on in MIC with its secretary-general S. Murugesan openly questioning president Datuk Seri S. Samy Vellu's dismissal of four leaders for criticising his leadership.
Murugesan is the highest-ranking MIC official so far to attack Samy Vellu who has backed off somewhat by saying today that he will leave earlier than planned (Sept 2011) if he is given "other responsibilities" outside the MIC.
This GAS attack is the most serious so far and it appears to be gaining momentum, especially in MIC.
Despite what Samy Vellu thinks, he is not that popular among MIC members (though most of the leaders are the president's men) and he is definitely not popular among the Indian community.
In showbiz, there is a saying that an artiste should go when the going is good so that people will remember him with fondness. In other words, one should not overstay one's welcome - if an artiste retires when his career is going downhill rather than at the peak of his career, people will remember him for his failures instead of his successes.
will that be the case for Samy Vellu? If he decides to go now, it will be during the downward spiral of his political career. Will people speak well of him in the future? Will people remember him for his political struggle (if any) for the Indians? Or will people remember him for refusing to go while his party was losing its relevance to the Indians?
In other words, does Samy Vellu want to be remembered for leading MIC into oblivion?
There seems to be a little revolt going on in MIC with its secretary-general S. Murugesan openly questioning president Datuk Seri S. Samy Vellu's dismissal of four leaders for criticising his leadership.
Murugesan is the highest-ranking MIC official so far to attack Samy Vellu who has backed off somewhat by saying today that he will leave earlier than planned (Sept 2011) if he is given "other responsibilities" outside the MIC.
This GAS attack is the most serious so far and it appears to be gaining momentum, especially in MIC.
Despite what Samy Vellu thinks, he is not that popular among MIC members (though most of the leaders are the president's men) and he is definitely not popular among the Indian community.
In showbiz, there is a saying that an artiste should go when the going is good so that people will remember him with fondness. In other words, one should not overstay one's welcome - if an artiste retires when his career is going downhill rather than at the peak of his career, people will remember him for his failures instead of his successes.
will that be the case for Samy Vellu? If he decides to go now, it will be during the downward spiral of his political career. Will people speak well of him in the future? Will people remember him for his political struggle (if any) for the Indians? Or will people remember him for refusing to go while his party was losing its relevance to the Indians?
In other words, does Samy Vellu want to be remembered for leading MIC into oblivion?
Monday, May 17, 2010
Sibu's mini tsunami
The political tsunami reached the shores of Sarawak a bit late - two years' late - but some observers and the Opposition leaders would say it's better late than never.
The slim victory by DAP in Sibu - the Pakatan Rakyat candidate Wong Ho Leng polled 18,845 votes against Barisan Nasional's Robert Lau's 18,447 votes - was interpreted by some observers as the March 2008 political tsunami having made its way to Sarawak, the bastion of Barisan power.
Other observers say it is a case of the worst kind of divisive racial politics from peninsular Malaysia that has been exported to Sarawak.
They say that Sarawak has always been a racially harmonious state with Muslims eating halal food in the same coffeeshops that sell pork kolo noodles to non-Muslim customers and nobody kicks up a fuss.
But the peninsular politicians have exported their Muslim vs non-Muslim dichotomy to Sarawak and exploited issues of religion like Pas' aim to have an Islamic state and the court's decision on the usage of 'Allah', the Arabic word for god, by the Catholic Church's magazine. Allegations of Bibles being seized and burnt were also exploited by the Opposition.
The observers also say that the Chinese voters in Sibu are more sophisticated now and politics of development no longer infuence them and they are now more concerned about national issues like freedom of worship, corruption, equality and human rights.
Another factor that influenced the Sibu by-election was the Sarawak Chief Minister Tan Sri Taib Mahmud, leader of the Parti Pesaka Bumiputra Bersatu which represents the minority Melanau and Malay Muslims, who has turned out to be a liability in this by-election and he was notably absent from several ceramahs held by top Barisan (and Umno) leaders.
Allegations about his family's wealth and influence were openly discussed in coffeeshops (where Muslims ate their halal nasi campur and non-Muslims ate minced pork kolo mee next to each other) and ceramahs and Barisan seemed unable to respond to these allegations (simply because it is true that Taib is rich and influential).
It would appear that the Chinese in Sarawak, just like those in peninsular Malaysia, are loyally pro-Opposition while the younger generation of Sarawakians, especially the Ibans, are anti-establishment. This potent combination resulted in a mini tsunami that pushed DAP's Wong to the finishing line just 398 votes ahead of Barisan's Robert Lau.
The shocking results of the Sibu by-election will have great repercussions because it means Barisan, especially the Sarawak Barisan leaders, will have to relook and rethink their strategies since there will have to be State elections by May next year.
Though Barisan leaders can say it is just one Parliamentary seat that fell, it could be the the first wave of a more powerful and destructive tsunami if the leaders fail to take note of the reasons for the defeat.
As for Taib, he must realise that despite his wealth and power, he is all too human and the sun may be setting on the empire of the White Rajah. Just like one or two other leaders in the peninsula, Taib could be overstaying his welcome and it is perhaps time to pass the baton of power on to a younger generation of leaders, hopefully not from his family.
A dynasty is possibly the worst thing to happen to Barisan in Sarawak.
The slim victory by DAP in Sibu - the Pakatan Rakyat candidate Wong Ho Leng polled 18,845 votes against Barisan Nasional's Robert Lau's 18,447 votes - was interpreted by some observers as the March 2008 political tsunami having made its way to Sarawak, the bastion of Barisan power.
Other observers say it is a case of the worst kind of divisive racial politics from peninsular Malaysia that has been exported to Sarawak.
They say that Sarawak has always been a racially harmonious state with Muslims eating halal food in the same coffeeshops that sell pork kolo noodles to non-Muslim customers and nobody kicks up a fuss.
But the peninsular politicians have exported their Muslim vs non-Muslim dichotomy to Sarawak and exploited issues of religion like Pas' aim to have an Islamic state and the court's decision on the usage of 'Allah', the Arabic word for god, by the Catholic Church's magazine. Allegations of Bibles being seized and burnt were also exploited by the Opposition.
The observers also say that the Chinese voters in Sibu are more sophisticated now and politics of development no longer infuence them and they are now more concerned about national issues like freedom of worship, corruption, equality and human rights.
Another factor that influenced the Sibu by-election was the Sarawak Chief Minister Tan Sri Taib Mahmud, leader of the Parti Pesaka Bumiputra Bersatu which represents the minority Melanau and Malay Muslims, who has turned out to be a liability in this by-election and he was notably absent from several ceramahs held by top Barisan (and Umno) leaders.
Allegations about his family's wealth and influence were openly discussed in coffeeshops (where Muslims ate their halal nasi campur and non-Muslims ate minced pork kolo mee next to each other) and ceramahs and Barisan seemed unable to respond to these allegations (simply because it is true that Taib is rich and influential).
It would appear that the Chinese in Sarawak, just like those in peninsular Malaysia, are loyally pro-Opposition while the younger generation of Sarawakians, especially the Ibans, are anti-establishment. This potent combination resulted in a mini tsunami that pushed DAP's Wong to the finishing line just 398 votes ahead of Barisan's Robert Lau.
The shocking results of the Sibu by-election will have great repercussions because it means Barisan, especially the Sarawak Barisan leaders, will have to relook and rethink their strategies since there will have to be State elections by May next year.
Though Barisan leaders can say it is just one Parliamentary seat that fell, it could be the the first wave of a more powerful and destructive tsunami if the leaders fail to take note of the reasons for the defeat.
As for Taib, he must realise that despite his wealth and power, he is all too human and the sun may be setting on the empire of the White Rajah. Just like one or two other leaders in the peninsula, Taib could be overstaying his welcome and it is perhaps time to pass the baton of power on to a younger generation of leaders, hopefully not from his family.
A dynasty is possibly the worst thing to happen to Barisan in Sarawak.
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