Malaysian Insider
By Shazwan Mustafa Kamal
May 27, 2010
KUALA LUMPUR, May 27 — DAP’s Tony Pua grudgingly admitted today that cutting subsidies could lower Malaysia’s debts, but he said the cuts will only be successful if leakages from graft and help for big corporations are plugged first.
“I feel that in general, the points raised were agreeable. But at the same time, these plans can only be put into motion if other conditions are first met.
“He (Datuk Seri Idris Jala) was quite naughty when he said that Pakatan Rakyat (PR) agreed with lowering subsidies. We agree to it but with conditions,” DAP National Publicity Secretary Tony Pua said shortly after he attended a government open day on rationalizing cutting subsidies.
The Petaling Jaya Utara MP told The Malaysian Insider that while the government has outlined ways in which to gradually lessen subsidies, other “main causes of debts” had not been carefully addressed.
According to Pua, the issue of subsidies was a small problem compared to the actual cause of Malaysia’s huge deficit problem.
“The focus right now is too restricted to subsidies to the man on the street. The focus is too much on dealing with subsidies to the man on the street. We need to look at two key aspects,” said Pua.
The DAP man claimed that the main cause of debts was due to huge government expenditure where major problems of wastage of funds and corruption remained unsolved.
“The main cause of debts is government expenditure… this has been admitted by the Auditor-General amounted to RM28 billion. This is the often quoted figure of waste by the government.
“(Besides that) we see things like the giving out of interest free loans to private companies like Syabas, those are examples which must be addressed. Subsidy is only one of the smaller factors,” said Pua.
He reiterated points that DAP and PR had brought up during the last Parliamentary session where there have been “gross leakages” in government procurement contracts. Malaysians were also not granted proper access to some government tenders.
The government said earlier today that it will save RM103 billion over the next five years if it starts to cut subsidies now.
Idris, who is in charge of the Government Transformation Plan (GTP), said Malaysia had a whopping RM362 billion debt and must start reducing subsidies amounting to RM74 billion last year to avoid becoming a bankrupt nation by 2019.
According to the minister, the government had spent a total of RM74 billion on subsidies last year.
Idris outlined areas in which the government could slash its spending on in order to increase the country’s per capita income.
Areas which have been identified include fuel, food and infrastructure as well as tolls.
“The government subsidy bill, it is not just about the amount of money to the man on the street, it is also amount of money given to big corporations, crony companies, if you like.”
“I think IPPs (Independent Power Producers) was highlighted quite well up there, they take about RM13 billion in gas subsidies per year. Compare that against food subsidy bill, RM3.4 billion. Where should the government be focusing their attention on?” said Pua.
Pua stressed that more money could be saved if the government stopped doling out cash to giant corporations.
“A lot of plans proposed today can only take place after certain benchmarks are achieved. You cannot increase electricity rates without first dealing with fat profits IPPs are making.
“If you increase the burden on the people but you maintain the billions of profits for IPPs that would be a very unfair policy, (then)you are creating an additional burden,” he said.
#1 by k1980 on Thursday, 27 May 2010 - 8:33 pm
After cutting subsidies, the GST will be imposed.
Double dose of penalizing the rakyat just because bn could not manage the economy. The Finance Minister should quit and let someone more capable take over
#2 by taurus 88 on Thursday, 27 May 2010 - 9:09 pm
It does not matter what they do cos whatever they do will be to no avail. Like RPK said in London, it is no good attempting to treat the symptoms cos it just simply will not work. It is the disease that should be treated. So therefore as long as UMNO is in the seat then absolutely nothing could be done. Before anything else, UMNO will first have to line their pockets, then their families pockets, then their cronies pockets and then whatever morsels left to the selected segment of the rakyat. So how much is enough? It does not matter how much natural resources Malaysia possess for come one day these resources will eventually be exhausted. Then what?
Be like Singapore one might suggest. But do our leaders have that mentality and matureness to do so? With the present government – not by a long mile mate!
So what can we the rakyat do? Well we can change all these just by a stroke of the pen. Quoting RPK, ‘We the rakyat is the boss’. So come GE13 with the stroke of the pen, we could effectively change the government and consign UMNO/BN to the gutter. Well not totally to the gutter but enough to effect them to be the opposition as at the end of the day checks and balances are still needed irregardless of who is forming the government on that day.
#3 by baochingtian on Thursday, 27 May 2010 - 9:21 pm
As a rakyat, I’m angry.
I do not see what the gomen has done for the people except the bragging of 1Malaysia. But one thing for sure, there hv been price increased in petrol, sugar, flour, poultry meat, etc over the past 2 years. I see that the nation resources and revenue have been mismanaged to the extent that apart from paying income tax, the rakyat are reqd to suffer to absorb the inefficiency of the mgmt system. I only hear if there’s no cut in subsidies, the country will go bankcrupt. But what’s the root cause? Is the gomen spending on things which benefit only some individuals like disneyland trip, full page advertisement in the US, etc.? The attitude of “u help me, i help u” can only suggest improper management of public funds. Where are the KPIs? How come there’s no monitoring to prevent things from going downhill till the extent of bankcruptcy in few years’ time? How come the Penang state govt can turn their financial standing from deficit to surplus in just a mere 2 years but not the fed gomen? What does it suggest?
Leaders of the nation, can we not take a clue or two from there? When people go out of job, they struggle, they work things out, they never ask the gomen to pay their salaries. Here, the gomen got an easy way out, get the people to fill up the financial hole with price increase, GST, RM50 credit card tax, toll increase, and the list goes on and on… Baka!
#4 by limkamput on Thursday, 27 May 2010 - 9:24 pm
See, now these bankrupt leaders talked about the government subsidizing us everything including toll roads. These farting leaders should have their farting brains examined. Hello, you are not subsidising us; we are subsidising the toll operators and those benefiting from the piratisation programmes, got it?
It is that simple, get rid of APs for cars, sugar, rice, stop moronic privatisation programmes like toll roads and IPPs and we shall pay our petrol on market price.
I can solve the fiscal deficit in one year without cutting the subsidies. Just cut 10% across the board the budget of all ministries and agencies and tell them in no uncertain term they must perform the same level of activities with 10% less. If they can’t do it, ask them to go fly kite. I can say with 100% certainty all government ministries and agencies are over budgeted or can do 10% less of whatever they are doing. If the government do 10% less, the economic efficiency of the economy will increase by 10% and our competitiveness catapults to number 1 in the world. For some of you who do not understand what I am saying: many of the things the government does is not service but disservice. So by doing less, the economy can actually perform better!
By the way, a 10% cut is equivalent to our current budget deficit.
#5 by yhsiew on Thursday, 27 May 2010 - 9:43 pm
If Lim Guan Eng could turn Penang’s deficit into surplus, how come the BN government could not turn the country’s deficit into surplus?
The rakyat must vote for a smarter government come GE13.
#6 by son of perpaduan on Thursday, 27 May 2010 - 10:15 pm
You see….I’ve told you! your next generation buta buta own the umno corrupted lead gorverment. You pay and pay till you die then your children continuing paying. Joymerai!
#7 by chengho on Thursday, 27 May 2010 - 10:17 pm
tony’s cuber village , can we trust you?
” In the 2005 annual report, Ernst & Young Singapore (pg 13) wrote:
As at the financial year ended 31 December 2005, the Company’s current liabilities exceeded its current assets by $260,077, and for that year the Group incurred a loss of $2,187,404. These factors indicate the existence of an uncertainty which may cast doubt as to whether the Company and the Group are able to continue as going concerns….”
#8 by cseng on Thursday, 27 May 2010 - 10:44 pm
Go ahead, cut!. Either way you die, you don’t cut you bankrupt by 2019. If you cut corruption and stop supplying money to GLC today, by tomorrow dawn Najib no longer PM. If you cut subsidy for the rakyat couple with help of Perkasa you could survive the next GE…
#9 by House Victim on Friday, 28 May 2010 - 12:23 am
How can one expect a Truck loaded with Lazy Passengers, with Bad Engine, Lousy Driver, with Poor Maintenance, no sense of Directions, with ignorance of Speed, Petrol and Temperature meters will work??
————————————————–
1. All subsidizes for the maintaining of the Stability of living and health running of the Society MUST be emphasized. Therefore, what should be subsidized MUST be identified.
a) Petrol, Toll and electricity are unfounded as they are from the natural resources where the basic cost should speak for itself.
-Petrol is from the “State” company who are earning!
-Many Tolls should not be there as they were built by the State concerned by the Tax-payer money on the State Land. And, many of them are even within the Municipals or inter-city (not inter state) Highway.
-Electricity are using gas/oil from the State. They are earning!!
– Water, especially in Selangor, was/is running by a rotten system with bully in management. The change of Company name had not provided a clear account, especially on WHERE those Water Deposit had gone!! One of the PR assemblyman was pushing for NEW Water Meter Deposits at that time!!
– Rice is due to “Monopoly” by those “sucking” license” and Poor running of Agricultural Plan!!
2. The Genuine of Budgeting – Inflation of Budgets or expenses.
a. Taking Subang for an example. Why MPPJ/MPSJ cannot even afford having a Town Park after taking assessment from Subang for the last 30years or more? Condo have been paying far far higher rate than the landed house with much much less to be spent. Yet, road was not maintained until 2003 when the Developer want to launched a new building.
Same for the 2 Buildings in Wangsa Baiduri where Service and Maintenance Charge was collected from around 200unit for more than 1million annually and extra-rental income. With only 5 lifts (2 are 2nd hand at the start), car park and a few sq feet of green land. The security are sharing with the Townhouse and the administration was meant for all, including the Townhouse.The account were not clear and in broken sequence and with a start of “no account” but with around half a million deficit. Up to now, no proper transfer of anything from the Developer, especially with the missing of the Club House and other facilities!!
A snapshot of the Administration??
3. Efficiency
Going to Government Offices, there are crowds of staffs. But, many are contributing to delays or dragging with answers. HOW MANY DID THEIR WORK PROPERLY.
Don’t fall into the Trap of “the Thief is summoning to catch Thieves”.
Looking into the Truck before taking the next Trip!!
MHT had “created” a great number of Ministers, either overlapping duties, or, just another Block to perform.
Asking a Fat-fellow with Belly to do high-jump?
Start doing Due Diligent on those PR states. Only when worms are caught and stopped, then, it could give a NORMAL Growth even with much less resource!!
WHY SOME BANK ARE PROMOTING INVESTMENT FUND FOR OVERSEAS AND NOT MALAYSIA??
Both the Car and Road are stuck!!
It took one year for Telekom to change the address of a client after having moved for one year, even the client has amended the address online for months. Causing disconnection and imposed of Re-connection charge. The Clients has to spend months talking to Call Centre, Account Department in a marry-go-round. It was considered as an application for WAIVER of charge.
These had become part of the working “Culture”! Be it be in the Government, or Public Sectors!!
Unless such Attitude be changed, NO MIRACLE will come!
#10 by Jos10 on Friday, 28 May 2010 - 12:57 am
Quoate:#5 by yhsiew on Thursday, 27 May 2010 – 9:43 pm
If Lim Guan Eng could turn Penang’s deficit into surplus, how come the BN government could not turn the country’s deficit into surplus?
The rakyat must vote for a smarter government come GE13.
__________________________________________
What make you expecting they can? Hahaha…If they can, it should have been done. It over half a decade now for BN but it is still the same. DAP only captured Penang in 2008 but yet they can turn Penang deficit’s into surplus.
Same like what you say, we need smart government….show those stupid idiot the out door….
#11 by PRU13 @ pollkad.com on Friday, 28 May 2010 - 1:55 am
already expected – mahathirism make msia poorer and eventually bankrupt.
you see – mahathirism’s NEP impl. leads the country to bankruptcy.
#12 by albert308 on Friday, 28 May 2010 - 1:56 am
Idris Jala…….Idris Jala, Umno trained newcomer. Malaysians are watching you, listen to what you say from time to time. Beware of Idris!
Are you another Umno stooge?
One day you said gomen bankrupt in 5 years if subsidy not reduce, then you twist 9 years.
Long time and experience PR leaders should aware of UMNO BN ‘SANDIWARA’. Do not fall into their trap. Playmaker still BN, controlling the game. When you reach Putrajaya, only you comprehend the reality.
Never ever believe UMNO LANUN statistic. All are just ILLUSION!
#13 by negarawan on Friday, 28 May 2010 - 2:00 am
Idris Jala quit MAS in the year when he knew they will report a major loss. So, what’s the big deal about this guy’s assessment? He and UMNO are merely misleading the rakyat into believing that subsidy is the cause of Malaysia’s economic woes. Let’s not be hoodwinked by UMNO. The economic and FDI problems Malaysia is facing today is purely due to mismanagement and serious corruption in the UMNO government in the last 50 years!
#14 by boh-liao on Friday, 28 May 2010 - 2:39 am
Norway has oil money n Norway’s citizens enjoy their oil money.
M’sia has oil money n what do M’sians get? Money? No. Monkey business, yes n we r oredi talking abt bankruptcy
By now if UmnoB can still continue 2 fool ppl into voting 4 UmnoB/BN, dis nation is doomed
D fact is so clear: UmnoB Malays n their cronies ARE NOT FIT 2 govern M’sia
Let DAP/PR govern M’sia so dat all M’sians benefit
#15 by boh-liao on Friday, 28 May 2010 - 2:56 am
Ha, ha – Moo moo’s challenge to find a local Tiger Woods, hilarious indeed
Find a local chap in terms of TW’s golfing ability or sexual exploits?
Mooooo, go no further, his own Johor mate is almost a local TW with VCD 2 prove too
#16 by monsterball on Friday, 28 May 2010 - 5:49 am
Sick of those one sided news..from government.
Not once they give you the real truths.
Tony Pua have said it all and it takes an idiot like Chengho…reading audited reports from UMNO who needs to keep two sets of books…if not three …..covering up upon covering up…with false balance details submitted for auditing.
Auditors paid by the millions from corrupted governments all over the world have been exposed to help crooked governments…later..caught and exposed.
In Malaysia…UMNO B controls eveything. Therefore difficult o expose them.
So many documents are classified secret documents..when some should be open to the public for viewing…no can do.
If we are at war or planning some counter fights against evil outside forces…understandable.
Our country is a straight forward one. Why so much secret documents?
The fact is our government is so crooked..theY need two sets of books….if not three to keep truths away from the public.
#17 by yhsiew on Friday, 28 May 2010 - 7:12 am
Tony Pua said currently the Independent Power Producers (IPP) enjoy RM13 billion natural gas subsidies from the government whereas the rakyat only get RM3.4 billion for their food subsidies. Now the government wants to maintain the subsidies for the IPP but lessen the rakyat’s food subsidies. Why kind of government is this?
#18 by Bigjoe on Friday, 28 May 2010 - 7:50 am
Its better for the country to go into default and like Greece first than to get rid of subsidies and give GST without fixing corruption, police, judges etc.
If you let them have GST and take away subsidies just like that, it just delays a few years before we end up like Greece also. THEN what? What do we use to fix the system and pay for the mess?
I say to Idris Jala – bring on the bankruptcy and default.
#19 by rahmanwang on Friday, 28 May 2010 - 9:11 am
Sometimes people have to learn the hard way.I always advise my son that not to ride his bicycle too fast, he thinks he was good and one day he fell and bruised and cut himself.Same for Malaysia.Why does a nation or a person become a bankrupt?It is spending more than it’s earning.Simple.Remember the excesses the government paid for hammers, screwdrivers, government contract,army uniforms and so on …..This way of excessive spending will surely drive a nation to bankruptcy.Monies lost in PKFZ, motorcycle company bought for half a billion ringgit and then sold for 1 Euro are all excesses.Who will be bankrupt at the end?The people of Malaysia.Except Mahathir(bought Augusta Rm500 million) Badawi (sold it for 5 ringgit).You do the maths.We either bought it too expensive or we sold it too cheap.
#20 by k1980 on Friday, 28 May 2010 - 9:38 am
Who are the fools that voted for bn to rule year after year for 53 years until it is going bankrupt within 9 years?
I can name a lot, but here is a short list— Koh TK, Chua SL, Samy Vell, Razaleigh……
#21 by boh-liao on Friday, 28 May 2010 - 11:57 am
Yeah, cuts cannot be limited to subsidies
D easiest n fastest route 2 recovery is d fast n furious way: line up d incompetent, corrupt individuals in front of a firing squad n say bye bye – kaboooooooooom
#22 by albert308 on Friday, 28 May 2010 - 12:06 pm
Malaysians are SUBSIDIZING gomen tens of billion taxes from car sales of 500,000 unit annually. Our car prices are among highest in the world.
#23 by mycuntree on Friday, 28 May 2010 - 12:40 pm
Completely agree with boh-liao. Put them up against a wall. That’s the only way to deal with these people.
#24 by johnnypok on Friday, 28 May 2010 - 2:23 pm
Sabah and Sarawak should pull out as soon as possible, and let Malaya face the bankruptcy alone, but before that, all the stolen money must be paid back to Sabah and Sarawak first.
#25 by monsterball on Friday, 28 May 2010 - 10:42 pm
hi idiotic.. Johnnypok …why do you keep harping and wishing Sabah and Sarawak should pull out from Malaysia?
Money matters problem?
How about vote UMNO B out and solve that problem?
Why are you so one track minded…stubbornly talk same cock talk…with no feelings for Malaysians..yet you faark UMNO B left and right.
You faark Najib for stealing and ask Sabah and Sarawak to run away?
Why no guts to stand and fight crooks ah?
Is that your logic?
When are you going to stop talking this nonsense again.
Run away for what?
Run away…so that you can come back from oversea to be with your love ones..under independence from Malaysia?
Most will ignore your stupid comment…but I need to faark you up for the sake of young readers not to listen to a crazy nut like you.
Yes…we comment to win voters to vote..for change in government…and not like your sickening comment. STOP IT!!
#26 by monsterball on Friday, 28 May 2010 - 10:45 pm
hi Johnnypok….have you seen crooks stealing billions…return the loots?
Please stop taking cock.
#27 by monsterball on Friday, 28 May 2010 - 10:48 pm
I mean stop talking cock…and not taking your cock to somewhere else……hahahahahahahaha
Keep faarking UMNO B and Najib.
That’s what you are good at.
#28 by johnnypok on Saturday, 29 May 2010 - 12:26 pm
Abolish AP and sell car cheap, while price of fuel can be sold at market value like in America.
… and force all the lazy majorities to do some productive work, and no more “double-standard” in paying taxes.
investigate how toon bak kut teh son has so much money.
#29 by kklim78 on Tuesday, 1 June 2010 - 4:23 pm
I went to the Open Day by Idris Jala last week. And I think we should look at this issue based on facts and fiscal aspect.
For the last 10 years, our debt and GDP are increasing. But the fact is that our debt is growing faster than our GDP. Our debt has increased by 12%, but as for our GDP, at only 3%.
And you have to understand, IF we continue to let this happen, our debt will be equal to our GDP (DEBT = GDP). IF this happens, our country will go bankrupt.
There are several things suggested by Idris in order to avoid this situation from happening. (Yes, we can actually do something to prevent it from happening, now!) :-
1. Increase our revenue and focus on 12 NKEA’s
2. Reduce expenditure (including subsidy)
The Govt already begins a total of 12 NKEA labs. These labs are participated by business leaders from various sectors, and will be running for 8 weeks. The objective of the labs is simple: to find solution on how to achieve higher GDP and national income.
According to statistic, to avoid the bankruptcy, our GDP needs to grow at 3% per annum (or higher).
But GDP growth is not enough to cover our debt. We must reduce our spending. One of the ways to do it, is to rationalize our subsidy. Our govt organized a Forum and an Open Day to gain feedback from the public. It proves that the govt is still concern abt the needs of the people, especially the middle or lower class citizens.
You may claim that this is all abt politics. Actually, it is not. It is abt our own economy, our living. If we dont help ourselves, no one is going to help us.
Let’s put aside our political standing and beliefs. Its abt our competitiveness, our future and younger generations. I am sure that, we dont want debt to ruin our kids. We have to develop this country without compromising the ability of future generations to meet their own needs.