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Wednesday, June 4, 2008

Petrol Prices Plan By Government: Protecting the Corruptors Pt 2

The government has a lot of other options than removing the subsidy to adopt. But, these options are very painful for the cronies, for the “rent-seekers” in UMNO, for the “4th Floor boys and for the entire UMNO party that relies on sucking the government dry for their own benefits.

The latest information I received from inside sources is that the price of oil will increase to RM 2.69 a liter in a few days time. I propose that everyone go and fill up their tanks tonight before midnight.

The government has a lot of other options than removing the subsidy to adopt. But, these options are very painful for the cronies, for the “rent-seekers” in UMNO, for the “4th Floor boys and for the entire UMNO party that relies on sucking the government dry for their own benefits.
Here are a few options that I would like to propose which can be adopted immediately for immediate savings. Remember that the figures I listed below are all estimation.

a. Repeal all laws related to infringement of freedom of media i.e. Printing and Presses Act, Police Act etc. With a free and vibrant media, the level of corruption will be seriously reduced in a very short period of time. This will effectively reduce government spending. NET SAVINGS in one YEAR: RM 5billion minimum

b. Cancel all IPP’s that is supplying energy to TNB for an inflated rate. Let TNB run all their power plants. After all, the amount of electricity generated by TNB is already exceeding the need of the country. ESTIMATED NET SAVINGS: RM 10billion

c. Make Petronas reports it’s earnings and losses to Parliament. By doing so, Pertonas funds would be more transparent and less prone to abuses by UMNO’s “rent-seekers”. Not to mention the multiplying effects to our country’s economy when Petronas funds are spent properly. ESTIMATED NET SAVINGS: RM 10 billion minimum (Estimated GDP contribution: RM 10 billion). TOTAL : RM 20 billions.

d. Government should encourage “Work From Home” program for all corporations since this will reduce travelling of employees getting to work. This will reduce usage of petroleum significantly. I estimate at least 20% of normal consumption thus reducing burden of subsidy. ESTIMATED NET SAVINGS: RM 10 billion

e. Make all government projects “open tender” which will result in further savings to the government for all the projects spent. ESTIMATED NET SAVINGS: RM 15 billions

f. For major corporations (the real major user of oil), the government can charge “Affluent tax” on them for the amount of oil they use. If their usage is more than what they require, the government can tax them, or reduce subsidy. This is to prevent waste in use of oil and energy. NET EARNINGS ESTIMATED: RM 5 billions.

Should there be any spending, then it should be spent on:

g. Spend on alternative energy proposal. Petronas already have an NGV engine. TNB can start exploring wind energy initiative. Telecom and TM Net can start spending on better and more reliable broadband infrastructure which will make travelling less of a requirement. ESTIMATED SPENDING: RM 10 billions

h. Improve public transport drastically. All the people I know would opt for reliable public transport then driving because it’s better that way. ESTIMATED SPENDING IN A YEAR : RM 10 billion

Therefore, let’s all do the mathematics(Refer to the table above).

Please bear in mind that RM 16 billion is nothing compared to the revenue Petronas is generating due to rise in oil prices.

It seems that if the government reduce corruption, introduce more transparency, and implement serious programs to reduce oil consumptions, and are serious in combating cronyism, nepotism and corruption, tax the real waster and polluters, we do not really have to reduce the burden of subsidy.

Readers are welcome to add and improve the figures and initiative I listed above.


Here is my respond to a few very good comments on my first article.

1) alvin lee said...
Yes, I for one also cannot understand why our country can be so adversely affected by global oil price increase when we are an oil producing country. Just wondering where Petronas fits in our oil price calculation formula.
My Comments: Exactly Alvin I think the best reply is given by the next comment by anonymous:

“ Anonymous said...
Petronas is just another UMNO cash cow. No one knows where they park the money & no one is able to access their audited accounts. By the way, the Petronas F1 sponsorship is another waste of good money. The F1 races are held in many countries where Petronas products are not sold.”
2) Anonymous said...
an LRT station in each housing estate? To give you a sense of reality, there are nearly 1000 housing estates in the Klang Valley alone. 1km of LRT costs approximately RM200 million. mya
MY REPLY: Dear MYA. It’s RM 200 million because it’s UMNO/BN building it. If it’s done properly then the cost should not be RM200 million each
And when I mean each housing estate, I mean like Subang Jaya should have one, USJ one, Subang Bestari and surrounding one, Kota Damansara one etc. Make the train easily accessible and practical.

First part of the article can be read here.
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  1. May I enquire as on how do you derive the numbers from?

    I don't think anyone can put NET SAVINGS in CAPITAL when it comes to issue like corruption.

  2. It's an estimation. And i beleive it can be done

  3. Thanks... nearly exactly what I wanted to say.

    So, some have been saying "Thank you for voting Pakatan Rakyat, Here is Your Hadiah"

    Others said "Vote BN? They are raising the price of petrol after the GE. Vote us & we will do something"

    The rest of us, can only wait & suffer!

    The system has clearly failed & capitalism has surely failed. When or when will the tipping point come... yawn

  4. Pakatan Rakyat !!!Pakatan Rakyat !!!Pakatan Rakyat !!!Pakatan Rakyat !!!Pakatan Rakyat !!!

    Anwar!! Anwar!!Anwar!!Anwar!!Anwar!!

    Lets pressure BN government for a snap election... we don't need those Sabah/Sarawak/UMNO frogies!!! PR will winn 2/3 this time!!!

  5. anonymous,

    i based my estimtation on a lot's of economist assesment that MAlaysia can save 40% of it's operating expenditure if they can reduce corruption

  6. Thanks to all BN and especially UMNO strong supporter, we all having nice raise in rice, petrol, electricity and to be continuous.

    Pak Lah come on, carry on! They no enough money to maintain their cronies.

  7. It is a sad day for the poor. How many raises can one take? Electricity 20%. Rice 70%. Petrol etc etc.
    Our food prices have increased. I went to the hypermarket and I came back with less for RM200. Less, less, less.
    And Najib can tell us to spend less. Hey DPM, we are not in your category, we cannot afford to spend. We can't even afford to pay all our core and necessary bills much less "SPEND"!
    We don't take holidays overseas, go to resorts and spas in Malaysia and shop at Gardens etc. We shop at Giant and our local grocers at times and live a pretty ordinary life. Even now that is ruined due to all the increases.

    Get your money back ( our money, we pay tax remember?)from Scholarship defaulters. Get rid of your corrupted officers etc. and give us ordinary citizens a peaceful and trouble-free life. You can receive your pahala.

  8. There are more ways to continue to provide subsidies. Pak Lah is always saying our petrol price is way cheaper than our neighbours. But the fact remains, comparison is done with non oil producing countries.HOw come we are not compared to Brunei who is also an oil producing countries instead of comparison with our neighbour who are not producing any OIL!

  9. Malaysia at the moment has around 4.2 billion barrels of crude oil left to extract. Worldwide there's around 1200 billion barrels left. The daily global extraction is 87 million barrels. If we leave out the factor of emerging China and India and assume that the need for oil will be stable, it is quite easy to tell that in 41 years all of today's oil will be used up. Malaysia is just a very small player with it's 4.2 billion barrels and should value it as good as possible. Wasting it for unnecessary and unefficient (those with only 1 person - the driver) trips will damage Malaysia more severe in a few years than a necessary increase in petrol prices today. Still, Malaysia ranks amongst the cheapest countries for petrol. The comparison with the Middle East cannot be seen as sound, as those countries have much bigger reserves. Saudi Arabia has more than 60 times more oil than Malaysia, but the same population. Of ocurse it is much easier for them to supply their people with cheap petrol and still they can export a lot for world market prices.


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