The first of many questions that come to the mind of Malaysians on the RM2 billion cost-cutting package announced by the Prime Minister, Datuk Seri Abdullah Ahmad Badawi is:
If the government can increase oil prices from 41 to 63 per cent, why can’t it slash the entertainment allowances of cabinet ministers and deputy ministers by 50% and not just a paltry 10%?
The question becomes all the more poignant when it is disclosed that the current entertainment allowances are RM18,865 for the prime minister, RM15,015 for the deputy prime minister, RM12,320 for ministers and RM6,000 for deputy ministers.
What about all the other allowances, including tips allowances which run into hundreds of ringgit a day, which ministers and deputy ministers are entitled to?
For a start, all the various forms of allowances which cabinet ministers and deputy ministers are entitled to should be made public not only as a a form of leadership by example in terms of accountability, transparency and good governance but also to demonstrate that the ministers and deputy ministers feel the pain of the people caused by the unconscionable and callous oil price hikes ranging from 41 to 63 per cent.
Abdullah’s statement that the cost-cutting measures he announced yesterday “will not be the first or the last” and that many other announcements will be made by the government is testimony that these measures are “after thoughts” after the manifestation of public anger and outrage over the brutal and hefty oil price increases when mitigation measures should have been part of any Cabinet decision causing far-reaching inflationary repercussions imposing great financial hardships on all vulnerable sectors of the Malaysian population.
The public anger and outrage at the unconscionable and callous oil price hikes had been aggravated by the lack of any sign that the government is prepared to end its waste, extravagance, misappropriation of public funds, lack of accountability and the many mega-scandals like the Petronas billions and the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal – further example that the Cabinet had not learnt the lessons of the March 8 “political tsunami” to be a caring, responsible, just and people-oriented administration.
It is no wonder that Malaysians regard the RM2 billion cost-cutting measures, described as the “first” of such measures, as not only too little and too late, but shows lack of seriousness to provide proper government leadership by example to lead Malaysians to tide through the hard economic hard times facing the country.
#1 by bennylohstocks on Tuesday, 10 June 2008 - 2:11 pm
Phew! …so difficult ’round about’ cutting costs, my saudara says:
LIKE EATING KACANG!
#2 by diel on Tuesday, 10 June 2008 - 2:13 pm
There’s a parable in the Bible saying that a poor woman gave all the money she has which probably(lets say RM2) out of her poverty and is giving so much more than a rich man who gives a percentage of his income or out of his richness.
So what is 10%?? I believe they can be more sincere in adhering to the people’s cry and give up more/all the perks! Come onlah we just need the Govt to justify the main reason of fuel hike to satisfy our anger and frustrations which we Rakyats are always being opressed!!
#3 by Kathy on Tuesday, 10 June 2008 - 2:23 pm
Should just start with the 50% cut of all the cabinet ministers allowances to show that the government is sincere. Otherwise, what is said is just curtain dressing.
#4 by Tantech on Tuesday, 10 June 2008 - 2:41 pm
Not only cabinets wasted our money in holidays and entertainment (there are many other allowances PM should disclose and slash), the local civil servants also squandered tons of our money. Look at this news published in Star Metro on 4th June:
Study trips to Germany and Canada under fire
BY BAVANI M
A STUDY trip to a city in Europe and Canada organised by the Federal Territory Ministry, Kuala Lumpur City Hall (DBKL) and Putrajaya Corporation has not gone down well with Cheras MP Tan Kok Wai.
The one-week trip from May 30 until June 7 is to study better ways of managing a city.
It involves a delegation of 15 high-ranking officers, including FT Minister Datuk Seri Zulhasnan Rafique and KL mayor Datuk Abdul Hakim Borhan.
Tan said the trip was unnecessary and a waste of money.
“Why must they go to Europe to study how to manage cities?” queried Tan. “Why can’t they go to Singapore, Hong Kong or Taipei to learn?
Meanwhile, when contacted the minister’s principal private secretary Shazril Fariza said the study tour to the two cities, Vancouver in Canada and Berlin in Germany was approved by the cabinet.
“The ministry picked these two cities because both have an excellent local governance system and a perfect place to learn.
“The ministry feels you cannot run a city the old way and in order to become a world-class city one must incorporate new ideas and ways and that’s what this study tour is all about,” said Shazril.
He added the delegation would also study ways to manage trafficcongestion and address environmental issues more efficiently.
#5 by oknyua on Tuesday, 10 June 2008 - 2:48 pm
k1980, the State Election is coming soon. Soon, that white hair man in Kuching would know when PR government starts to investigate his sibling’s forest and timber land.
Hey, by the way, don’t judge Sabah and Sarawak people so harsh. PR never esixted before the 8th March tsunami. Secondly, there was just a handful of opposition candidates during the last GE. Don’t forget PKR and DAP didn’t even want to shake hand for an alliance there. Don’t blame the Sabah/Sarawak folks too much.
#6 by limkamput on Tuesday, 10 June 2008 - 2:49 pm
There is a Chinese saying which I can’t translate accurately. But it sounds like this, “hang cow head but sell dog meat”. Yes, this is exactly what the Cabinet is doing. They gave you the impression that they are selling beef, but in actual fact they are selling dog meat. Got it?
#7 by ADAM YONG IBNI ABDULLAH on Tuesday, 10 June 2008 - 2:51 pm
Sir Jeffrey QC.
You are absolutely right. Who are the Prime minister and his Deputy and all the Ministers entertaining ? They are enterained.
THis is a joke. CUT OFF ALL THE ENTERTAINMENT ALLOWANCES.
This money belong to the raayat , and by gosh that’s alot of entertaining to do. No wonder all scramble for a cabinet post. N here, we are to change our lifestyle.
YB Lim,
9to 5 has a made good comments on wastage and monetary fiasco. take up it in parliament .
BTW, those retired cabinet ministers do they still enjoy certain allowances and benefits. The more cabinet postS they hold, the more the retirement benefit.??????? WHILE THE RAAYAT SUFFER.
#8 by limkamput on Tuesday, 10 June 2008 - 2:53 pm
Second Penang Bridge costs only RM4.3 billion and now they want to review, reexamine and relook. PKFZ incurred RM4.6 billion (and btw still not functioning) is completely ok. You tell me godfather.
#9 by Cinapek on Tuesday, 10 June 2008 - 3:08 pm
PM, please stop insulting our intelligence. You sounded even more hypocritical when you offer that token 10% cut in entertainment allowance.
In the first place, why does ministers, deputy ministers etc need a fixed entertainment allowance? When they attend an official function, aren’t the entertainment already arranged and paid for by the relevant ministries or departments? Open Houses for example. I do not think the functions are paid by the minister’s entertainment allowance?
And what happened if the entertainment allowanace are not spent each month? Does this go into the minister’s own pocket? This is wrong because the allowance is not used, it should be returned to the Govt.
Ministers are usually entertained rather than doing the entertaining. As such, it is more effective and sincere for the PM to remove this entertainment allowance altogether and reimburse the ministers for any expenses incurred for entertainment. And since the PM is talking of alternative lifestyle, maybe the ministers and their deputies be given credit cards with a cap for such purposes so that minsiters can use these cards for payment of genuine entertainment expenses.
#10 by ADAM YONG IBNI ABDULLAH on Tuesday, 10 June 2008 - 3:19 pm
why should the ministers be given credit cards to use.
they will probably pay the minimum amount required and than let the next PR government to settle their sins of their entertainment.
if they need credit card, apply themselves and pay themselves.
btw jeffrey Qc, i really cannot comprehend how to spend RM6,000.00 per night without any women and wine. go to red box or green box and it only RM30.00 per hour inclusive of free orange juice.
#11 by ch on Tuesday, 10 June 2008 - 4:35 pm
Dear All,
Splashed on the local prints today was the 10% cost cutting package, a step forward by our government to lighten the burden of its rakyat. The 10% cost cutting and austerity exercise works out to a savings of RM2 billion. Simple arithmetics would translate that the government officials require RM20 billion a year or 13% of its total annual revenue solely on expenditures. This is by no means a mammoth fixed cost for the government in order to run smoothly. Many huge corporations believe in the management concept of richly rewarding your employees who excel. The question that we must ask now is whether or not our ministers deserve to be rewarded.
The fuel prices had been a topic of frequent discussions since 2003 when the world noticed a fast and rapid energy requirements by India and China. My view is that our ministers had been caught napping and did not take preemptive measures to better manage the economy state of affairs should the fuel prices escalate back then. In short, the government is adopting this fire fighting method of tackling this energy hike issue. We have somewhat the advantage of time to better prepare ourselves for this crisis if our ministers had the foresight back then.
Malaysia is exporting 250,000 barrels of petroleum per day and should be making very handsome profits from the sale. I hope our government had not sold its position forward when the fuel price was USD50 to 80 per barrel. This is a cardinal sin that should not be forgiven if they had so.
If we care to turn to page 6 of NST today, we will read the excerpt of Dato S. Saravanan who felt bad because he will not be able to making trip to London like other ministers and deputy ministers before him following the austerity drive by the government. I hope our ministers and deputy ministers could come up with better comments than this in future. It reflects as if they are only looking forward to perks and freebies once becoming ministers or deputy ministers.
#12 by Godson on Tuesday, 10 June 2008 - 4:42 pm
To umNO-BN,
We your supporters are indeed rejoicing that you NAIK HARGA. Please continue to do whatever you can to NAIK HARGA. We will fill your pocket and your stomach with $$$ till you vomit. Jangan turun harga, because we support you to NAIK HARGA. No need to cut you mentri’s expenses. Let them enjoy. We support you.
Hidup, Susah, atau Mati, We guarantee support umNO-BN.
Hey YOU umNO-BN supporter….Yes YOU….Masih tidur kah?
Bangun lah. Dont be like umNO-BN. The ship is sinking. Still sleeping. Jump ship now you going to drown.
DO IT RIGHT THIS TIME. CHOOSE PR.
#13 by blablowbla on Tuesday, 10 June 2008 - 5:17 pm
[deleted]
#14 by elaineganmaclaine on Tuesday, 10 June 2008 - 5:24 pm
Entertainment expenses are a luxury for cabinet ministers to not want to work hard, using such benefits to play hard and neglecting their responsibilities is an eye sore!
Ministers here are just too spoilt…
#15 by donplaypuks on Tuesday, 10 June 2008 - 5:48 pm
Dear LKS
Let’s not waste time on symbolic gestures and petty measures. Even if we remove all the Minister’s allowances, this will not amount to much in saving our economy & you know it.
If M’sia were a private compani & I its CEO, I would concentrate on :
1. Ways to increase wealth by maximising income tax from industry, petrol, oil palm & commodities.
2. Cutting overheads i.e. over-staffing in Civil Service, Petronas, local govt etc. The savings here will be significant and we can also pay more for efficient and professional staff.
3. Trim ‘White Elephant’ and grandiose pump-priming Fed Govt funded projects.
4. Re-negotiate or take over all IPP, Toll Highway, Water & Sewerage projects where the previous administration under Firaun gave away ridiculous contracts to Croneys.
Remember, it is not the business of Govt to be in business. Create the right environment for business and let the private sector take the risks, except for areas like Public Transport, Education, Health, Infra (Water/Elec/Sewerage etc)
#16 by Bobster on Tuesday, 10 June 2008 - 5:51 pm
10% of entertainment allowance (excl. salary, commissions and all extras) already cost the country 2 BILLION RINGGIT!
In another words, 20 BILLION RINGGIT SPEND every year solely for ENTERTAINMENT purposes.
Hello, rakyat Malaysia. Are you there?
This is enough to press the RED BUTTON to call for re-election and sack the whole administration!
#17 by DG on Tuesday, 10 June 2008 - 6:06 pm
Yes and 2 Billion can be regarded as a commision from PETRONAS for helping them SAVE 58 BILLION per Year? So any difference? I would guess the commisions may runs as high as 20 billion or 30 billion.
#18 by lew1328 on Tuesday, 10 June 2008 - 6:26 pm
YB…
The RM 2 billion (converted to USD ~ 0.6 M) is just a penny compared to the earning profit from the Petronas loh.
“Rakyat”… you’re now waking up, suffering for inflation that jump & shock…
#19 by boilingmad on Tuesday, 10 June 2008 - 6:28 pm
That is why they can afford to announce a 10% cut in allowances. Becos they cut 10% on one hand, but make 150% on the other hand. The ‘beruks’ still think the rakyat are stupid and will be comforted by this meagre cut in the ministers’ allowances.
More important, we must find a way to not allow the current corrupt ministers from robbing as much as they can and run away. We must find a way to claim back what is rightfully the people’s money. The last thing is to see them all emigrating abroad, laughing all the way to their foreign accounts and leaving PR with a bankrupt country!!!
#20 by yhsiew on Tuesday, 10 June 2008 - 6:37 pm
Wow, what a good show put up by BN – allowance cut to help the rakyat!
But don’t be fooled, they can easily get back what they lose in some other ways, e.g. RM50 for a pen, RM500 for an electric fan, RM100 for a ream of A4 papers etc.
#21 by chiakchua on Tuesday, 10 June 2008 - 6:38 pm
How could they have ENTERTAINMENT allowance? I’m sure they are always being entertained. They are not businessmen, why do they need to entertain? Entertain party members? That’s misuse of public fund.
According to the Hotel Operator Association (sin chew today), 70% of their event business comes from government departments. They would suffer badly if government strictly adhere to the new ruling to disallow functions in hotel. Now we know how the various ministries had been enjoying the posh facilities in the hotel with the rakyat’s money! What a shame! More truth would be revealed soon!
#22 by caishen on Tuesday, 10 June 2008 - 6:42 pm
“….many mega-scandals like the Petronas billions and the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal ”
Since the government can bailout scandal, how about bailing out the current crisis??
#23 by yhsiew on Tuesday, 10 June 2008 - 6:45 pm
To show their sincerity, they show withdraw their USD deposits from Bank of Israel to help the rakyat.
#24 by Jack Daniels on Tuesday, 10 June 2008 - 6:52 pm
When we talk of high tranport cost, I believe there are 2 major costs involved in transport cost;
a] fuel cost
b] vehicle cost (which include basic vehicle cost + custom duty, govt tax)
Since govt said our previous fuel cost compared with countries all over the world was cheap so govt raised it, I think it’s fair for rakyat to compare our car cost (especially our car custom duty) with countries all over the world.
That way it’ll be fair and govt must bring down our car custom duty since our custom duty for car/vehicle is the highest in the world and because of this our transport cost is so high.
I urge govt to cancel vehicle/car custom duty so car/vehicle cost is comparable with other countries around the world just like how govt compare our fuel cost with other countries.
#25 by novice101 on Tuesday, 10 June 2008 - 6:52 pm
If the government is serious, it should revamp the way projects are awarded. Many more billions can be saved. Start with making a review of all the contracts that had been awarded.
#26 by k1980 on Tuesday, 10 June 2008 - 6:59 pm
At issue will be whether the savings from lower subsidies will be used for the public good, including improving public transport and mitigating the impact of inflation on the poor, or whether it will be squandered away on new crony-based projects that in the end bring little benefit to the country.
http://www.atimes.com/atimes/Southeast_Asia/JF11Ae02.html
#27 by dapbestrong on Tuesday, 10 June 2008 - 7:18 pm
“Roughly Malaysia produces 650,000 barrels of crude per day. We consume 400,000 barrels leaving 250,000 barrels to be exported.” -From Chedet.com
Yet we still have to pay world price?? crazy!!
#28 by yhsiew on Tuesday, 10 June 2008 - 7:34 pm
Cutting back on allowance will not help much. With so many of the “9th Malaysian Plan” projects being delayed or shelved, the nation’s economy will go downhill. The country is doomed and may enter a period of regression – Vision 2020 may even turn out to be a debacle!
We need a more capable government to lead Malaysia.
#29 by caishen on Tuesday, 10 June 2008 - 7:53 pm
AAB during Mahathir-era was in charge of Foreign Ministry.
What does he knows about economy and financial.??
#30 by dapbestrong on Tuesday, 10 June 2008 - 8:09 pm
“Dato S. Saravanan who felt bad because he will not be able to making trip to London like other ministers and deputy ministers before him following the austerity drive by the government. ” by NST Today -All of them just care for themself, selffish shame on you! others work so hard to earn a honest living and use their own money to travel etc, you people use the rakyat money to enjoy, The 20bil!! tak tau malu at all.
#31 by pjboy on Tuesday, 10 June 2008 - 8:48 pm
If entertainment = RM 20B a year. Imagine what about other expenses? Or is expenses = entertainment in BN-UMNO two forked tongues. In corporate tax, we need to justify that our expenses or entertainment are results of business generated or related. We have to justify this, otherwise taken out. Now, can the government justify to the rakyat the RM 20B a year entertainment? 100% cut, so this will save RM 20B a year. The fuel-subsidy should have been RM 37B instead of RM 57B. If the cabinet ministers cannot justify the entertainment or expenses used, it should be taken out & returned to the IRB or returned to all tax-payers only.
#32 by Tantech on Tuesday, 10 June 2008 - 9:01 pm
Long ago when I voiced out BN people held functions at hotels, but the newspapers didn’t even published them. What if BN were to allow freedom of speech, today they will not suffer this plight of being hit by people left and right.
I was disgusted whenever I saw civil servants holding training camps at hotels and resorts. They spent overnight there and eat 5-star buffet. I thought they were wasting people’s money man! And the organizer will also pocket insentives from the hotels for sure as they always marked up the cost.
I wonder how come they could not hold functions at their own buildings of UMNO, MCA, MIC,etc?
#33 by kensball on Tuesday, 10 June 2008 - 9:04 pm
We the rakyat are suffering and the rakyat still want to pay for thier allowance??? What a joke……..
#34 by Loh on Tuesday, 10 June 2008 - 9:23 pm
The government expects to save RM 2 billion by changing the lifestyle of the ministers and their civil servants. They should have done it before the first price increase for oil last year.
#35 by fido on Tuesday, 10 June 2008 - 9:25 pm
This must be the biggest laughing stock for a govt of any country for the century!!
If this was Japan, you should know what to do to save face. Then again, do they have the guts to and do they even have any “face” left is another story.
#36 by philip vyti on Tuesday, 10 June 2008 - 9:45 pm
9to5 thank you so much for your much researched article on all the expenses incurred by the govt of BN. Entertainment allowance was introduced when the country was having it good by mamak and he used the money for himself and his ministers. A 10% cut is a joke while the rakyat pay 43% for petrol increase.The entertainment allowance should be abolished for ministers and top civil servants as they dont entertain anyone but themselves so why use the tax payers money in the first place
The PKR exco in the states they rule should take a 30% cut and make Bodowai and his gang look like fools.
The DPM fresh from his trip to UK his trip paid by us has the cheek to say that the govt cares for the people and haS TAKEN A 10% cut. Hello we are no fools and my family and me waiting for next GE which could be round the corner.
#37 by KennyGan on Tuesday, 10 June 2008 - 9:57 pm
I doubted it when Anwar said he can cut fuel prices when PR takes over. But now knowing how WASTEFUL and CORRUPTED the govt. is and knowing this is just the TIP OF THE ICEBERG, I fully believe PR can cut fuel prices by shutting down the tap of corruption and wastage. No problem!
#38 by yhsiew on Tuesday, 10 June 2008 - 10:07 pm
If Pak Lah could pledge 1 billion ringgit for his darling state, Sarawak, to prevent MPs cross over to PR, the 2 billion ringgit cost-cutting package looks too insignificant to relieve the rakyat’s suffering.
#39 by walao on Tuesday, 10 June 2008 - 10:44 pm
PM and his government are not sincere at all. They should set the first examples by slsashing their entertainment expenses or even their pay first before revealing the price hike to us. Now after we shown our anger , our sorrow, they only do this bit…Shame on him. We can see this is just a “wayang kulit” show to please the bodohland people. Are we that stupid?? Afterall this “SLASH” is not that bit deal as the poor is feeling the slash, they only feel the small pinch . By the way, why the government been hiding the fact that they had the difficulty in subsidising the fuel for so many years? Why stop subsidising and reveal now? Where was our money after so many years??
#40 by walao on Tuesday, 10 June 2008 - 10:49 pm
By the way, I don mind to fork out 10% of the hoilday trip to UK if my company pay the 90% of the expenses. WOW…. I laugh all the way during my flight to UK. I may look idiot but who cares.. 90% borne by company.
#41 by lopez on Tuesday, 10 June 2008 - 10:55 pm
i have an idea, why dont the division ones self-opt for deduction of pay to commensurate with the mistakes they contributed to the nation and the lives of people on the streets.
Since they also end work earlier than any others why dont they clean the streets and drains since this allow them to exercise for free and gives them to look fit and free from fatty tummies. While they are at it maybe some of them learnt to shave and look alert for a change.
cheers
traffic always moves bothways, dont judge others if you can’t take the return shots.
#42 by walao on Tuesday, 10 June 2008 - 10:59 pm
Bro and sister, this is just entertainment allownce, what about their salary, their driver allowance, their medical and insurance allownce, their security and bodyguard allownce?? Any overtime claim? Any extraodinary claim like Taiwan former president Chen? Pls let us know how much they are getting pay and still doing a lousy job .Sack them pls.
#43 by sheriff singh on Tuesday, 10 June 2008 - 11:04 pm
Saravanan can’t even make it to India even. He’s restricted to ASEAN only.
Maybe he can make it as far as Myanmar. And use his entertainment allowance to get to India.
RM 12,230 pm buta gaji. Thats RM 410 to spend to entertain oneself per day. Not bad. Lots of banana leaf rice even though its gone up to RM 10 per helping now.
#44 by sheriff singh on Tuesday, 10 June 2008 - 11:05 pm
We could on the other hand print more money.
#45 by pgsilai on Tuesday, 10 June 2008 - 11:29 pm
Oh yes, if Petrol increased 40%, their allowance should be cut at least the same 40% too, what is 10%? I think they don’t deserve the allowance at all. Such screw up govt, everywhere I go I kept on hearing , haiyo it’s time to change govt la, we are suffering here!
Keep on asking us to change our lifestyle, how? We have such lousy transportation in our country, each time when petrol hike up, all I could remember was the govt wants to improve the transport system but till know I don’t see much improvement in Penang, it gets worsen each day. So, is our 2nd bridge on? is our monorail on? Why so quiet now? So, it this going to be delayed?
#46 by dawsheng on Tuesday, 10 June 2008 - 11:45 pm
“I doubted it when Anwar said he can cut fuel prices when PR takes over. But now knowing how WASTEFUL and CORRUPTED the govt. is and knowing this is just the TIP OF THE ICEBERG, I fully believe PR can cut fuel prices by shutting down the tap of corruption and wastage. No problem!” KennyGan
You are right Kenny, the Pakatan Rakyat government can surely roll back the fuel hike. But I am quite sure Tobacco and Sin Tax won’t be spared, that’s alright.
#47 by dawsheng on Tuesday, 10 June 2008 - 11:49 pm
Abdullah’s government is going after the IPP and we all know it is just a farce, because Abdullah has to do the same with the toll collectors, you think they will let him open the book?
#48 by BurungKitchik on Tuesday, 10 June 2008 - 11:50 pm
Hey !
What a cut !……..
Oil price hike 40 %
Minister’s entertainment allowance cut 10 % that high !
Haaaaaaaa…..really a joker indeed.
Comparing.
RAKYAT income ranging from RM 1500 ~ 3000
Minister’s income as least 3 to 6 times RAKYAT’s .
but both have to face the 40% oil hike
( including almost everything price increased).
Ministers !
While the parent or better said “the RAKYAT” start struggling to save more … from 10% , 20% , 50% or even more percent to run their respective family, but our “childish” PM just decided to have 10 % cut in minister’s entertainment allowance.
Wake up….no more zzzzzzZZZZ.
Wake up !!!!
Wake up !!!!
Wake up !!!!
Wake up !!!!
#49 by dawsheng on Wednesday, 11 June 2008 - 12:34 am
The whole cabinet should be scrap right now, having them there cost us the future of this country, Malaysians cannot afford it.
#50 by dawsheng on Wednesday, 11 June 2008 - 1:02 am
Under Abdullah’s government, everyone is a victim.