Cutting subsidy- 1

 

Forgive me for this pun. I know why the government is bending over to convince us that subsidy cutting is good. It's Anwar Ibrahim. The government doesn't want to be known as worse than Anwar Ibrahim. 

Why? Subsidy is derived from the Latin word subsidium. It means coming with help FROM BEHIND. Right now the government doesn't want to have anything to do with anything coming from behind. It has done enough from behind screwing on us.

I asked for forgiveness first right?

It's nice to hear Idris Jala raising concern about the amount of subsidies our government is paying. Last year the government spent 74billion on subsidy and he quickly adds that's about RM12, 900 per every citizen in Malaysia.

Now, was that call justified? You spent RM 74 billion last year and quickly qualified that by saying, that's RM12, 900 per head.

Was that supposed to make us feel guilty and therefore malleable? Don't lab here and there.  Dont open day here and dont open day there. Open everything. 

The decision to cut subsidies may have already been made. The lab/Open Day on subsidy held at KLCC is just a public relations exercise to make us the public feel 'included' in the new inclusiveness. We are included only when it comes to sharing the burden but excluded when it comes to sharing benefits. Or in the case of the 74 billion spent last year, that portion going to deserving public was much less that the portion going to wasteful and unproductive entities.

You do what you have to do. Which areas do you want to cut? You want to potong the subsidy in the form of cash or near cash handouts to the poor and needy and the infirm? Or those government agencies and entities that took up huge loans previously? Or those public universities who soaked in money but failed to produce good results. You have got to differentiate between non performing subsidy recipients and really subsidy dependent recipients.

Cutting expenditures is better. Wasteful expenditures. Defense for example. Who are we fighting that necessitate us getting the latest and most expensive armory? We have cheap natural defense- I like the answer given by the deputy defense minister when he explained the reason why the submarines cannot submerge, is because here in Malaysia, the water is different. Man oh man.

That reduces those top military experts to the mental level of my deep-sea going fishermen friends. They have long realized the sea in Kelantan and the sea off Pahang are different and therefore the fishing nets need to be modified. Please check- our submarines- have they been modified? If yes, at what cost?

Tell you what- next time you want to buy any more submarine- like weaponry, call me please, I will recommend you some of deep-sea going fishermen who can offer subsidized advice. No need to call up a Razak Baginda or a foreign interpreter.

Let me define what subsidy is from the beginning. Its public money (ours that is) taken by the government and given to private hands. That's what it really is. But the way Idris Jala says it, once those people took the money and then that money taken becomes a problem, the problem MUST be shared once again by the public. You don't believe me? - look at the subsidy components. What portion of the 74 billion spent last year went to target groups- the poor and the needy and what portion of the subsidy went to those people who needed subsidy least? Or look at how much of the 74 billion when to debt servicing? What portion went to recipients who don't contribute to the nation at all?

So Idris Jala( whom Pak Lah mistook to be a Muslim) mustn't give the impression that this is a burden borne by the government to help out poor people. In 2009, the govt spent 84b. In 2010, it spent 74b. It has already reduced 10b.

Before making sweeping statements- please identify which areas absorbed most subsidies.

10 b went to debt servicing and 10b went to subsidize the price of fuels. Pension payments 5.12b, 3,10b went to dividend payments, 2.3b went to MARA, 2 billion went to federal roads achieving minimum standards, 1.5b went to UITM, 1.38 billion went to human capital development, KLIA got 1 billion, 906million went to makanan asrama, 541m went to UPM, 515m to USM, 497m went to MU, 382m to UTM, toll subsidies- 394m

In the next part, we shall discuss further. I think enough heart palpitations in the morning today.