My Say

Read Jeff Ooi’s blog HERE.

“In summary, the Finance Minister stated that…

Untuk makluman Yang Berhorbat, subsidi yang ditanggung oleh Kerajaan Persekutuan pada tahun 2007 adalah sebanyak RM43.4 bilion. Daripada jumlah ini, sebanyak RM16.2 bilion adalah untuk subsidi produk petroleum (termasuk cukai terkorban RM7.4 bilion) dan RM18 bilion untuk subsidi harga gas kepada sektor elektrik dan industri. Manakala sebanyak RM9.2 bilion untuk pelbagai bantuan kepada rakyat…”

Bravo to Tony for asking the question. Now we know the true picture. The subsidy actually paid by the Government is NO WHERE near the RM43.4 billion. The actual subsidy paid for fuel is only RM8.8 billion (RM16.2 b - RM7.4b). The RM7.4 billion does NOT cost us any money, anymore than say, not taxing the 9 million working-but-not-taxpaying population cost us any money. It’s an opportunity cost. We do not measure our wealth using opportunity cost.

The biggest users of subsidy are actually the Independent Power Producers (IPP). So the increase in fuel prices has not addressed this AT ALL. The Rakyat has been taken for a ride yet again by the wonderful statisticians employed by the Government using the Rakyat’s and Petroleum money…

The average Rakyat has to suffer while the shareholders of the IPPs, many of whom are already listed as the richest Malaysians in the FORBES list released recently, continue to add to their immense wealth…

I’m DISGUSTED!!!….

Can’t help wondering what the PM is trying to say HERE… Is he saying that he has been able to satisfy the others? How many others has he bribed?

In Putrajaya!

According to the Malaysian Association of Automobiles (website: www.maa.org.my ) , a total of 487,000 vehicles were registered in 2007.

Doing a simple math: Assuming the average price of the vehicle was RM50,000 , and the average tax is 33% of the price, the total taxes amounted to RM8 billion. That’s right, it’s RM8,000,000,000. This is a very conservative estimate. Even then, it’s a whole lot of money. Where has it gone to?

Well, let’s see: Govt Allocates RM5.8 Billion For Staff Quarters In Putrajaya

That’s RM5.8 billion of the RM8 billion down the drain or should I say swamp?

Now you know why the Government always wins the parliamentary seat in Putrajaya?

If you want to recover some of the taxes paid on the car you bought, you should join the civil service and get yourself subsidised accomodation. Now, why is no one making a fuss about this subsidy?

The Government has been making a song and dance about how many billions of Ringgit it costs to subsidise motorists. With full page advertisements and billboards everywhere reminding all motorists how generous the Government is. With tagline like: Cheapest petrol in the region, etc etc.

This is typical of the Government - propaganda based on half truth and selected facts, not the full picture!

Are motorists really being unfairly subsidised at the expense of people who don’t drive?

I am sick and tired of hearing all these irresponsible one-sided lies.

Let’s do some math.

We’ve all heard anecdotal evidence that cars in Malaysia are among the most expensive in the world. But do you now how much of the price of each car is paid to the Government as taxes? Based on the latest National Automotive Policy, the lowest excise tax rate for a sedan is 70%. Take one of the cheapest cars in Malaysia, the Proton Saga, which retails at around RM30k. Around RM10k is paid to the Government in the form of excise duty and another RM3k as sales tax.

Assuming the following:
1) This car consumes around 5 litres of petrol for every 100km.
2) The driver makes around 15,000 km per year.
3) The subsidy per litre of petrol is RM0.50.

Total petrol consumed in1 year = 15,000/100*5 = 750 litres
Total subsidy = 750*0.5 = RM375.

If he drives the car for 20 years, the total subsidy he would have enjoyed is RM375 * 20 = RM7,500.

Even on an undiscounted basis, he would not have recovered the taxes he paid of RM13k upfront.

If we apply this formula to bigger and more expensive cars, with the most expensive duties up to 165% of cost, there is no chance that the taxes paid on any car can ever be recovered via subsidy.

So can whoever is talking about fuel subsidy please shut up!

I am all for removal of fuel subsidy, but please remove the taxes as well.

It’s about time the rakyat enjoy decent transportation, instead of being forced to ride on Malaysian made motorbikes (even this has a 20% excise duty!!) and Protons.

By the way, I wonder where all the taxes go to? That is the story for another blog…

Another brilliant piece of commentary from our minister. Read here. My comments:

1) If anyone is willing to stand for election to public office, then he/she should be willing to accept criticism. It’s not a question of whether the person ‘bashing’ the government is clean or otherwise. Being ‘bashed’ is the price to pay for being elected to Government. No member of parliament is forced to stand for election. If one can’t take the heat, then resign, just like the Batu Gajah MP, Fong Po Kuan. I’m fed up of politicians making a big fuss about how much they sacrifice to serve the people. Hey, it’s your job. It’s what you are paid to do, not to sleep in Parliament! It comes with the territory and all the privileges they get as MP.

2) There’s no freedom of expression (of speech, feelings etc) in this country. So how can the people who are frustrated express themselves? In blogs like this, of course. This is nothing more than a technologically enabling of the old coffee shop talk. Why, if anyone had bothered to listen to the talks in the coffee shop in the good old days, one would have heard the same ‘bashing’. Of course with technology, it’s easier for the ‘talks’ to be spread in cyberspace.

3) The bloggers are not condemning themselves. Question: Has the DPM ever condemned himself? This is human nature-lah. Why kick up a fuss. Everyone thinks that he/she is right and the whole world is wrong. Something new? Grow up-lah!

4) This blogger can honestly say that I’m not guilty of the things that I’ve ‘bashed’ the Government about.

There you go…

Another brilliant idea from the Government. I’m perhaps just a little cynical, but someone is going to be made very rich with the impending contract for the new curriculum, instruments, vehicles etc etc.

Anyone knows the problem with our our drivers is not the syllabus or the test vehicles. It’s due to corruption. Unless the corrupt JPJ officers are dealt with, this is another great idea by someone to make himself some money.

If there is a worse decision than cancelling the talk with VW, then this could be it: If the Government now decide to let Proton have a local partner. Hopefully some common sense will prevail and Government will negotiate with GM instead.

Well, what more can anyone say, right? After all the Cabinet has made the decision. Read here for what the deputy PM has to say about this rather sad episode.

It reminds me of the true story of a girl (’S'). A quiet, unassuming, nice girl, S was the target of many suitors. Suitors who saw her ‘inner beauty’, as she wasn’t someone one could describe as beautiful or even pretty. S was blissfully unaware of the many boys who were too shy to make known their intentions. One day, all this changed, when a ‘high profile’ person (’P') joined in the fray and he immediately professed his feelings for her and showered her with all sorts of gifts and attention. S changed overnight as a result. She swapped her glasses for contact lenses, changed her old-fashioned wardrobe for more daring clothes and even started to walk and speak differently. Her original suitors didn’t like what they saw and quietly left the race. The only party left was P. P enjoyed going out with S for a while but soon lost interest and looked elsewhere. S was dumped unceremoniously. She then started to realise that she was better off when she was her old self. Sadly, even when she changed back, she found that there was no one around, who was interested in her. No one waited for her..

This may sound like a page from the Dear Thelma column in StarMag, but this is probably what is happening to Proton. What, just by turning the corner in a c0uple of quarters, Proton wants to walk away from her suitors? Whatever were they in the Cabinet thinking of? Every single car maker of note in the world is part of a bigger automotive group, even fierce independent makers. Does Proton (maybe the question should be answered by the ‘expert’ in the government?) know what it takes to be a profitable car maker without government support? Can a pampered lady who has never set food in a kitchen cook up a feast? What’s the chance of a fireball in hell?

Sigh. Many people are probably rueing -”if only”… there goes the chance for many people to drive decent cars at decent prices…

Statements like these appall me. Any fool can give out loans. The real question is can they be collected? The Chairman should take into consideration a couple of factors:
1) Micro-credit. This is an euphemism for sub-prime. With the recent global financial crisis caused by imprudent lending, he should really re-consider this strategy.
2) The Malaysian economy. Despite all the good news in the headlines, the next economic recession is probably due. Let’s see: 1985, 1997, X. Let the Mensa members figure out ‘X’.

The sad reality is that the Chairman and most of the senior management probably won’t be around when these loans turn bad. Some one else will have to clean up the mess. And maybe some taxpayers’ money will be wasted in the process.

So what is the best course of action? Why, go borrow from BSN, of course! With any luck, the loan may never need to be repaid!

I must admit I never knew that the ‘made in Malaysia’ tag can be used to improve sales. Read this. Albeit, the recognition is for all the wrong reasons. But it does show what we are capable of, if quality is taken seriously. Proton should certainly take a page out of this!