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by Tulang Besi at www.malaysiawaves.com The information about the hike in oil prices have been around for the last 6 – 8 years. In fact, as far as 6 years ago, Goldman Sachs had predicted oil prices would touch USD$100 per barrel. I fail to see any significant steps taken by Barisan Nasional in the last 4 years despite knowing that the price of oil would hit Malaysia like a bus.
Of course, Goldman Sachs has now revised their predictions to USD$200 per barrel by next year. UMNO and BN started to reduce subsidies bit by bit right after the 2004 landslide. And they did this knowing that oil prices would touch USD$100 per barrel or more. The government also promised several initiatives in place of the reduction of subsidies. To me, their initiatives are next to nothing. In the last 4 years, how many new LRT stations have been built? How many new buses have been introduced into the bus system? Was any system of subsidy distribution for the poor put in place by BN? Instead, what we see is that Pak Lah had used the last 4 years to make Khairy and his people richer. During this time, UMNO, being the backbone of BN, became more and more arrogant and corrupted. There was no sign of any of the reforms promised by Pak Lah before 2004 being implemented. All we saw was a group of people close to Pak Lah consolidating their control over UMNO and the government. As far as the impending rise in oil prices was concerned, nothing was done. I am sure BN could have accomplished these initiatives in 4 years: - At least another 5 – 8 LRT stations or tracks could have been built;
- The number of commuter trains could have been doubled;
- More commuter stations could have been built;
- Proper connections between the three LRT companies could have been made;
- The prices of cars could have been significantly reduced;
- Increased the number of cars running on NGV;
- Provided 50% of petrol stations in Klang Valley with NGV;
- Implemented a discount coupon system for poor and middle class families so that they can buy gasoline at a very cheap rate.
But have we or do we see any of the above being implemented? No. Instead Pak Lah and his 4th Floor cabal went on a rampage and in the process made themselves filthy rich with various dubious deals. UMNO, on the other hand, still maintained their hold on the country resources where the Ketua Bahagian has the final say on who or where government contracts are to be awarded, for a fee of course. This is where the country’s wealth is actually drained; it goes to a bunch of Ketua Bahagian UMNOs whose jobs are only to ensure UMNO’s hold on the Malays is never compromised. Instead of developing a Malay entrepreneur generation, UMNO has created a group of leeches that sucks the country’s wealth into their individual pockets while serving scraps to the rest of the people. AVERAGE PEOPLE SUPPORTING THE CORRUPTED FEW As a result, the majority of the public, Malay or not, have to spend through their noses to maintain the elites’ way of life. In short, the UMNOPUTRAS are feeding on the majority’s suffering. Latest figures state that oil subsidy is at 7% GDP. Without the current price rise in oil at the pumps, our country’s budget deficit will be at 6%. What is never analyzed or declared is that if the country’s finances are handled properly, the deficit does not have to be at 6% despite the subsidy being at 7% GDP or more. The laws of supply and demand apply. Right now, demand in Malaysia is high because our public transport system is bad and our dependence on gasoline and diesel too heavy. Any effort to reduce subsidies must be along the line of reducing demand. Another major step that the government can take is to impose a windfall tax on petroleum companies. As our petroleum is regulated, these corporations will not have the option to transfer losses due to the taxes to consumers. In fact, the windfall tax can be applied to all commodities companies in Malaysia who are enjoying a bumper crop due to increasing international demands. This windfall tax will reduce the deficit significantly and easily swallow the subsidy spent on oil. But, Pak Lah and UMNO cannot make such a move because these companies (Petronas, Guthrie, etc.) are UMNO’s cash cow. They provide easy cash to UMNO leaders. As a result of UMNO’s refusal to effectively tax the “Cash Cows”, the majority of the people are not enjoying the bumper crop of the country. Instead, Petronas’ money goes to the pockets of a few and these few are living life like heaven on earth. The picture above is just the tip of the iceberg as there are so many other sectors of our economy that the government can extract significant amounts of revenue to reduce the deficit. However, since UMNO wants to ensure that these Cash Cows are protected, they are therefore not taxed properly. Lastly, UMNO is beyond help and must be replaced. They are no longer serving the interests of Malays or Malaysians. UMNO is a mere instrument to serve a few individuals popularly known as UMNOPUTRAS. The rest of us Malaysians are expected to toil, suffer and strive to ensure that these UMNOPUTRAS can continue to live their lives like heaven on earth. Tulang Besi www.malaysiwaves.com
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