Cutting Down of Subsidies Should Be Fair to the People

It is said (by the government) that the subsidies in Malaysia is not sustainable.

Maybe.

So they wanted to cut down on subsidies.

Fair enough.

Before we go any further, please look at the yearly audit of the government expenditure. And calculate in total how much we would have save on tax payers money instead of them being wasted by the government no less.

Then, estimate all the leakages (unaccounted money) and all the shady, legalized "illegal" commission.

Estimate also how much we would have save if we were to practice open tender, and well as doing away with blind discriminative policies when comes to choosing contractor (who would have earned so much that they can sub the whole contract away).

These are broad generalization that i believe is a fair line of thought.

Petrol Subsidy (and Proton, Perodua)

Now let us consider one very specific item of subsidy that make all the headlines - petrol subsidies.

And so it is said that we will be net importer soon.

Fair enough.

I say, remove the whole petrol subsidy.

But also remove all the vehicle tax. Especially those for imported vehicles. Then we will buy cheap, quality cars and pay as we use the petrol.

More than that, we can get rid of one big piece of related subsidy, namely national car subsidies paid directly by citizens of Malaysia. How much have Malaysians been paying for this uneconomic venture? How long?

Malaysians would have a better quality of life without having to pay protectionist tax (and thus subsiding national cars). This is a great tax Malaysians have been paying to subsidize the national cars.

Let the petrol corporations compete on their products and pricing. No need to subsidize. We might even get better deal than subsidies.

But please do away with any vehicle related tax.

Be fair.

More to Come

Thats all for tonight. More to come tomorrow on subsidies.