A good thought by Dr Rafick

 

BN… Barang Naik…Hujan saja yang turun

I have been following the issue of oil price hike and the last few days, I went around and assessing the impact of the oil price increase. For once, I would like to say. Those people who put the current government in power have just got the taste of their own medicine. It is quite obvious that the current government lacks foresight in managing the problem of rising oil price and its impact. For me, it only shows the lack of creativity in managing the problem.

Is the issue is about Petronas Money?

We are the next exporter of oil and as such we should be enjoying relative cheap oil. The government is to damn focus on Petronas income in assessing the problem. I disagree with the government and the many people that harp on the issue of Petronas income and the pump price. These 2 issues are not related.

The real issue is the way government manage its income and expenditure. We are a rich country. The country income is not dependant on oil revenue only. If the subsidy is affecting the government income then the government should find ways and mean to increase its income to maintain the subsidy of fuel. The problem is that the government is not looking at ways increasing its income. It is just to focus on the issue of global oil price and Petronas income. The government must go out and find ways on doubling the government income.

On the aspect of expenditure, it is quite clear that time is hard. The government must ways to reduce its operational cost. It must review the implementation of those non critical projects. When the government don’t have enough money, it should behave in manner that reflects such position. The problem with out government is that we seem to overpay for everything that we buy, be it a pencil, a jet, submarines or a service. There is a lack of cost consciousness on the part of the government. Many governments GLC are top heavy. There are many GLC that has not been making money for years but this company is still continues to be in operations. It is time to cut cost. Do the right thing.

Can the government control the impact of increased oil price?

The short answer its NO. They can threaten but it will not work. Public transport service has increased their price. Cost of goods has gone up. Rental has gone up. Salary remains the same. In other words, the government action has made many Malaysian poorer. Not all Lorries enjoy subsidy diesel. Many farmers have no choice but to increase their price because the price of fertilizer goes up and it cost those more to send their produce to market. Reality is, once fuel goes up, everything goes up and from record it is quite clear the government has never been able to control the price of goods. History has shown this. Our government has not learnt.

What is the real issue then?

I believe the real issue lies with the outflow of cash of the country when subsidies are paid to foreign oil company. Petronas being the 100% Malaysian own company should be given the privilege of selling subsidize oil and the other foreign owned company must sell premium petrol at prevalent market price. This way, the amount of money flowing out is minimized. Whatever subsidy that is given to Petronas will go back to the government.

If this measure is taken, then the price of goods would not be affected. The wealth of Malaysian would not be reduced. The recent action of the Government has increased the level of poverty in Malaysia. If it is used to be RM525 but Now, for a city folk I believe it is RM1500.

Conclusion

I have been having neutral thoughts about the BN government past few years. The action of the government in managing its finances in times of hardship is now under my scrutiny. In my view, it has failed. I am now changing my perspective of the government from Neutral to Negative. Don’t tell people to change their lifestyle. The government must change the way they govern. Maybe the BN MP’s can lead by example take a salary cut.