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Sakmongkol ak 47

Friday 28 May 2010

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.


Anonymous,  28 May 2010 at 07:28  

Its not the subsidy that matters, its how the peoples money been spent. If we have good and well planned public transport, that will make it more efficient spending. Imaging how wasteful the resources petrol n ttime when cars jammed the street in KL in the morning and evening. Imaging the repair works on the MRR2 that cost the people money and the MATRADE building. Those are subsidies too as they come from behind.

Lots of our money has been spent effieciently, if you check at the research institutes and universities, many equipemt bought are underutilised. Our AG ma not see this in their audit. That does not including spending lavishly for opening ceremonies and what not..
Mr Idris, please include your lab experiment with ordinary people and people in the street and not just public servants and top business people.
Please also include losses thru mismanagement in SDarby and PKFZ, where governemt tax revenues.

Anonymous,  28 May 2010 at 07:35  

I still maintain that the present government must be changed to bring immediate benefit to the nation. Mismanagement and corruption alone contribute a huge percentage of the country's deficit. Just imagine how much can be saved if fiscal prudence is practiced by the government.
This is a sick government that we have now.

Anonymous,  28 May 2010 at 07:46  

I agree with this Idris Jala, just cut the subsidy. Goverment already lost 74 billion. Public must be burden to death, so the goon inside the goverment can live happily ever. Why bother those public. Kill them like nobody bussiness.Cheer.

Oh, forgot to ask, whose money actually this subsidy? From where did the money come? I never learn that our goverment had any bussiness around the world to make money. Oh shit... it my money.


Anonymous,  28 May 2010 at 08:39  

More data required.
When it comes to these reported subsidy numbers, does it include what government uses as its own operating expense ie fuel, electricity, rations, government staff scholarships, . Then what percentage (of total) is it?
If it is already part of the numbers, then, if you remove subsidy, your other operating expenditure is whacked accordingly, save sini bayar sana. Fat tenders may become fatter.Hmmm.

Greenbottle 28 May 2010 at 09:03  

i don't understand economics...but if we pay the tax (and i pay fucking a lot compared to probably 95% of umno fuckers)i want my money well spent...

what dato sak itemized didn't seem bad to me if they are UTILIZED PROPERLY.

hell, i'd even support more subsidy for say, SCHOLARSHIP AND EDUCATION loans FOR ALL...

what i don't get is all these KETIRISAN shit...

fuck jala idris, this kafir monkey from borneo...i want MORE subsidy...but at the right place and to the right people...THAT'S WHY WE ELECT THE GOVERNMENT help us...fucking idiots!!!

sniper,  28 May 2010 at 09:18  


we should abolished subsidies and the tax system and replace it with a more effective and proven system of baitumal and zakat. Will najib accept it.

It's more berkat to the whole nation.

flyer168 28 May 2010 at 09:21  


Just to share this...

A Tribute to Dr Goh Keng Swee Pt3/6 [Ch5 English] As Defence/Economic Minister Listen to LKY's Speech & President Nathan's Reference to Dr Goh...

A Tribute to Dr Goh Keng Swee Pt4/6 [Ch5 English] Defence, Technology, Hi-Tech Industry, Agriculture, Defence Scholarships, Noah's Ark Memo to SAF, Finance & Defence Minister, "Mr Fix-it", Education Minister "Goh's Daring Dozen"....

Farewell to Dr Goh Keng Swee - eulogy from Minister Mentor Lee Kuan Yew part 1

Farewell to Dr Goh Keng Swee - eulogy from Minister Mentor Lee Kuan Yew part 2

Singapore rejected in Aug 1965...LKY cried & made the resolve - Singapore will Survive!

LKY had all the "Once Malaysian Brains" to create "what Malaysia could have been"....Singapore as it is 45 years!

Compared to what the UMNO/BN has done in that time, to "Abuse, Corrupt & Destroy" this once great nation... to be what it is now!


Anonymous,  28 May 2010 at 09:27  

The country is in trouble and we have this Jala fella who is trying to make thing simple and just like that and throw the burden to the poor people who will not be able to say anything.
Ingatkan Mat Jala ni otak nya bijak, rupa nya malas berfikir!!! the way he is doing thing anybody on the street can come out with the ideas and with the mindset who cares about the poor!!!
There is no military experts in the country but a plenty of apple polishing generals who is still dreaming and hoping that war will never happen as they can't even take care of the aircrafts' engines but still insist buying more military hardware which donot benefit the nation at all especially now- so what is the use of the submarines that cannot sink with all the deficiency and what is the use of a new helicopter which everyone knows that it will be a problem in the future. Jala should look at the military budgets and cut it off and use the money for the rakyat- our Southern neighbor is no more a threat, after all our PM has agreed to work together and develop the contentious KTMB land.
This Jala's lab may be is ready with the UMNO solution or the answer to solve the problem is already set-may be- I don't know!!!
Ini macam kita bolih mampus la Dato', Anyway gua caya sama lu la Tok....
Alahai... Mat Jala!!! ingat ingat lah mereka di Sarawak tu!!! Tak kesian ke?????

Anonymous,  28 May 2010 at 10:00  

Solid Dato'
Thanks a lot !

The Repoman

Ir. Hanafi Ali 28 May 2010 at 10:07  

Malu, sedih, seronok, marah bila baca artikel-artikel Dato.

Anonymous,  28 May 2010 at 10:18  

You have to add additional RM 4 billion for "GII Profit". Refers to Govt Investment Issues that are Islamic securities (so the interest component is declared as a profit rate)

Unknown 28 May 2010 at 10:19  


Looks like the guys who sold the stolen Aircraft Engines should be recruited to replace Idris Jala to think of new ideas (not old ones that Idris jala is espousing) on how to save or generate new money to cover for the petrol subsidies.

Your notion of "people participation" in the cutting of subsidies won't work.
Why ? People will only look at what money is left after all the subsidy cuts and revolt once they find out there is little left for essential spending!

Donplaypuks® 28 May 2010 at 10:31  

Idris Jala has very quickly been seduced and indoctrinated into the $77 million Rakyat fleeced and financed spindoctoring lies of Rosemajib and APCO!!

Out of $74 billion in "subsidies", $48 billion represents allocations for education, health and welfare. Since when was this cost a subsidy that was not meant to be borne from the taxes the Rakyat pay?

Also, this shameful sacremongering tactics by the very same Govt which has caused this unbelievable run up of $362 billion national debt should see everyone asking for the resignation of the UMNO/BN Govt en masse today and call for fresh elections!!

Instead of cutting back the fat layer in the Civil Service, GLC's and corruption filled Govt procurement system, they are proposing to increase indirect taxes by increasing petrol, electricity, health (hospital charges for the poor) and education (Uni fees)!

Jala's ill-conceived (read as stupid) proposal actually DOES NOT tackle the cosy automatic rate and tariff increases in the 1 sided contracts awarded to croneys during the Mahathir and Badawi era vis-a-vis AP's, toll highways, IPP's and water cos.

I mean how can we continue with this rape and plunder of Tenaga where 45% of its operating cost consists of guaranteed payments to IPP's without reducing & restructuring it? The early beneficiaries of these IPP's especially were:

Lim Goh Tong/Genting
Anandakrishnan/Usaha Tegas
Francis Yeoh/YTL
Syed Mokhtar Bukhari/MMC

Do you see anyone there who was/is not a croney?

And why give free AP's to 4 Kings (opportunity cost of $3 billion per year) and betting licences to Vincent Tan when Genting had to cough up over a billion for its Marina Bay Casino Resort in Singapore??!!

When even the "safe deposits" of Sime Darby, Tenaga, Telekom, Khazanah, PNB etc. are not secure, we know we have a very inept, incompetent and clueless Govt. That's what we have to change first - i.e. the Govt/Governors, not the subsidies.

If we acquiesce silently, we, the Rakyat will continue to pay heavily all the way to bankruptcy and 4th world status for the profligacy of a few crooks in our country!!

we are all of 1 race, the Human Race

nick 28 May 2010 at 10:34  


The things is that all of the Ministers from PM and down to this Jala fella make it sounds like the money going to the subsidies are from their own pocket and not the public's hard earned (taxed from them) money.

It is our money and Why shouldn't it be use for our benefits? Why should public monies be used less for us and more for paying cronies (IPP and Tolls), leakage (bribe or commission in buying arms) and luxurious spending (such as "First Trolley adverts in NY times and Disneyland holidays etc).

The gomen should tells us what they have done to plug the leakages, stop the fattening of cronies, halt the luxurious unnecessary spending and punish those who mismanage and misappropriate the funds (GLC losses, bail out and ridiculous infra work) AND THEN tell us to make do without the subsidy. NOT BEFORE THAT AND NOT WITHOUT THAT! The Government exist for the people and not the other way round!


Anonymous,  28 May 2010 at 10:48  

since the BN govt is going to bankrupt us by 2019, we should elect a new govt when GE13 comes

Donplaypuks® 28 May 2010 at 11:23  

Rosemajib, cancel today that $8 billion "UN Afghan monitoring" light tanks contract to DRB. We can't afford it!

And why is 1MDB sponsoring $5 million scholarships to Egypt when it has not even announced its 1st RoI statement?

Anonymous,  28 May 2010 at 11:24  

How do we explain this in economic term? The country going bankrupt but the rich gets richers.. this is based on the stock market value of their assets.
How about those assets owned by Mr Taib M and family, Pak Lah and family, UMNO leaders who are not listed. The country can go bust but the rich get richers..some thing Mr Jala has missed in his analysis....

Let change the government before its goes bankrupt..That clear indication and guide by Mr Jala who had been appointed by the government

SINGAPORE: The combined wealth of Malaysia’s 40 richest individuals has risen by 42%, spurred by the country’s economic expansion.

According to the Malaysia Rich List 2010 published by Forbes Asia, the 40 richest individuals are now worth US$51bil, up from US$36bil a year ago.

“The overall increase in wealth is also in line with the 32% rise in the FTSE Bursa Malaysia KL Composite Index and the ringgit’s 11% gain against the US dollar over the past 12 months,” Forbes Asia said in a statement yesterday.

Anonymous,  28 May 2010 at 11:27  

did the government take any action to recoup expenses paid in scholarship from those who had migrated

Anonymous,  28 May 2010 at 11:33  


whats a govt for? is it not to collect taxes and use them for the benefit of the people. called it subsidies or any other forms, should it not flow back to the people. whats wrong with that?

for goodness sake, before the poor becomes poorer and the fat cats in UMNO and their cronies become richer, clean up your act, Najib. Else, truly you will be the last PM from UMNO and RAHMAN prophesy fulfilled. Or is it destiny?

Anonymous,  28 May 2010 at 12:24  


Little wonder that this country is going bangkrupt looking at the way Najib is throwing money around during ByElections....

3 million here for a single school, 5 million there for some drains...10 million elsewhere so UMNO can win the byelections... When all the byelections are over there will be little left. And the best part is that he claims, THE MONEY IS COMING FROM HIM!! Same
as the Subsidies....It's coming from him ma!!

Joe Black

Masam Manis,  28 May 2010 at 12:32  

Dato Sak,

How did figure of RM12,900/head come about? Presumably with 30 million population (plus foreigners) doesn't the ave subsidy from RM74 billion should be RM2500/head.

The way Idris Jala speaks as if he is a Finance Minister . We all know he is just a Minister in-charge on NKRA. Who is then actually the Malaysian Finance Minister? Someone that will explain to the public and responsible to fix Malaysia economy and someone we can "hang" if Malaysia economy fail? I just hope DS Najib ponder upon this while reviewing his new cabinet line-ups.

chee,  28 May 2010 at 12:52  

"That reduces those top military experts to the mental level of my deep-sea going fishermen friends."

Dato/Sir, please do not insult your fishermen friends.

Anonymous,  28 May 2010 at 13:08  


I think the public should just stop paying taxes if the present BN govt can't manage finance appropriately. When they screw up, the public is left cleaning up the mess. What the heck!

Frank,  28 May 2010 at 13:12  

Well said, Dato Sak. And saying it as it is.


Anonymous,  28 May 2010 at 13:41  


The proposed subsidy cut is only a second best solution. It's painful to the 'rakyat' especially the poor and needy.

The better solution is to fight for a corrupt-free nation, that will save RM 100 billion, according to TI.

Donplaypuks® 28 May 2010 at 13:45  

If you divide 74 billion by 27 million, that gives $2,700 per person

To get $12,900 per family, Jala must have assumed 5 to a family on average. That seems a bit high for the 21st century.

we are all of 1 race, the Human Race

Anonymous,  28 May 2010 at 13:47  

Assalammuailiikum YM Bro…..

I am a very uneducated person trying to express my thought and please forgive me for my uneducated writing. Please forgive me again.

I’m so happy and felt so much blessed with the unseen income out of nowhere hanging somewhere in our thick and thick forest and our water with so much of distinctive feature that no human being on this earth would have ever experienced such gift unless they come visit and jump into our water………..than they can wonder why are they floating rather than drowning……. (WE are proud of our water. We don’t insult neither do we humiliate our own fishermen, farmer and be whatever you are but look carefully and give a deep thoughts who is actually insulting and humiliating us, are they not the want who we choose to represent us and put them where they are?)

Ole…RM 12,900 per head….show to us which idiot individual citizen enjoying that amount per head per annum. Good accounting, spreading it all over equally from the 23 million populations. Oh…we forgot one part, this is an intangible dressing expenditure given out only in the mindful not mouthful pieces.

Haa…..making us included or part thereof….since when?? Is it after 53 years of Independence or since Najib took office or Idriss Jalla graduated from economic class!!!.
The government is now the BIG, STRONG and FRIENDLY BANK who could immediately and promptly detecting NON-PERFORMING LOAN rather than the NON PERFORMING managers.

HOOO… we are told that such and such subsidy was been allocated. Even to such an extent that such an amount spent why are some of us still has to scratch from one end to another end by merely getting just for the day and only the basic needs. Obviously the answer from those elegant was that we don’t push hard enough and work hard enough. How enough is enough and how hard is the push that need be?

Look at the chosen structure of the allocate subsidy expenditure. There is always a double payment especially on debt servicing and price fuels and this even the half hearted and half blind economist could see it in a crystal clear water. But then again sabar lah the prime Minister is hip hopping and Anwar Ibrahim is back hopping and Nik Aziz busy punching heaven tickets and Vell Parry is the UMNO guru’s it seem.

For the Government Economist, what kind of policy does this fall into;- Monetary, Fiscal or whatever name that you like and prefer Or provide another theory just the like the submarine theory. It would be another great theory to be considered for Noble prize.

________________________________________Recipient Subsidy Contribution Expenditure________________________________________
Total Receipt 74 billion

Debt Servicing 10 billion
Price Fuels 10 billion
Pension 5.12 billion
Dividen Payment 3.1 billion
Mara 2.3 billion
Federal Road 2 billion
Uitm 1.5 billion
Human Capital 1.38 billion
KLIA 1 billion

Hostels Food 906 million
UPM 541million
USM 515 million
MU 497 million
Utm 382 million
Toll 394 million
Sub-Total 39.635 billion
Miscellaneous:- 34.365 billion
Purchased New Bus
To accommodate
Vell Pari-Pari Vell,
and PPP
Grand Total 74 billion 74 billion

Anonymous,  28 May 2010 at 14:01  

Why the hell do we need 2 KPI ministers. One is a dead wood and the other formerly heads a company that consistently depend on handouts to stay afloat (fly high) and now talk about cutting subsidies so that there is enough money for the handouts, one sided agreements and wastages to continue for the GLCs, monopolies, cronies.
BTW one high flying tycoon was handsomely rewarded half billion by the government and now is the proud owner of an English football club.
Is it fair for us to pay more now without subsidies and with added GST. With the 2 KPI ministers the country is going down the drain faster

Anonymous,  28 May 2010 at 14:39  

If this is the best that Jala can come up with, we are in terribly deep sxxt. His proposals do not merit his post. Seriously, how did this fella come to have a pedigree from Shell and MAS?

First thing to be done is to do a 'rationalisation" of the cabinet composition. Reduce the number of ministers, Members of Parliament and Senators by half and see how much we will save. The Dewan negara and Dewan rakyat do not need two Deputy Speakers, where one will do. Since they both sit on different dates, both houses of Parliament can use the same speaker and deputy speaker. Get rid of the post of the Deputy Prime Minister (what use is this post anyway?).
"Rationalise" the number of ruling families in the country. Have one single constitutional monarch for the country and all the states, or if that is too extreme, make the governors' posts redundant. Kedah can act as for Penang, Negeri Sembilan acts for Melaka, while Sabah and Sarawak have a single governor acting for both states. Call him or her the "Yang di Pertua Negeri Sabah dan Sarawak".

I'm more than prepared to attend this subsidy rationalisation "lab" if invited and can come out with a list of other measures that will save us the need to reduce subsidies.

The whole country should read and be briefed about this particular posting of yours, and open up their eyes.

sri hartamas

Fair play,  28 May 2010 at 14:39  

Ah ya Sakmongkol. Why do you have to allow your hatred of Anwar Ibrahim clouds your thinking? You know who (person and institutions) brought us into this dire situation and now you want to distract us with your diatribe against your punching bag.

amateur economist,  28 May 2010 at 14:42  

This "subsidy" have to include the amount the present government spent on the bloated and inefficient which has become bloated and inefficient because of the misguided way the NEP had been implemented. I just hope that the government will also train their sight on how to deal with this overspending on the civil service.

Ariff Sabri 28 May 2010 at 14:57  

anon 14:39

i bear no ill will towards Anwar Ibrahim. if you care to read my blogs sometimeback, you will note that i have always maintained that Anwar should be treated with decorum befitting of one who was once our DPM and i stand among the few in UMNO who deplore the insinuations behind the term BABI when referring to Anwar.
these just jabs not my elbow hit!

walla 28 May 2010 at 15:24  


B: 'Do? We are half a century late, Sofea. Those buffaloes have muddied and muddled everything in this country.

Ok, as i was saying, we must open our economy and market. This means Malaysia becomes completely duty-free. This means you can finally have that beemer hardtop coupe at one third present price. And also walla can borrow a batmobile for highflying kuldeep.

I don't care if the currency goes out. Go back to free float and old times. What i care about is to create the ultimate shopping paradise that is Malaysia and honey in all those unemployed foreign brains and industry experts, innovators and designers, machinists and marketers, until there is such a big number we can then build a cosmopolitan world inside this country and use it to crowbar new standards, not just of things but also of thinking and mindset changes, until we can all claw out of the hole dug too deep too long all these years.

Once you focus on tourism and investments like that, every able-bodied Malay can go and learn some foreign words so that he or she can moonlight temping at a hotel or somewhere. I don't care, just make some more money for a future already gone sour. Oh, makcik in Besut, fair thee well.

Secondly, government minimizes its physical presence and maximizes its virtual transparency. Everything is to be processed online within twenty four hours. You want to set up a company? All documents ready in one day and printable online. Licenses, permits, approvals? All online by tomorrow five p.m latest. And nobody has to drive to Putrajaya to get a form. And everyone gets to see an annual to-pay checklist automatically viewable on the web on the 1st - from assessment to quit rent to whatever, even phone, mobile, etc bills. And you can pay by credit, debit or account deductions. Anywhere in the country. So start that national debit/octopus transport card. You should get it renewable in small denominations so as to reduce theft/hacking losses. Let me add, every civil servant, including politician, wears the same police-tag 'i don't take bribes so offer one at your own peril; and if my service to you is tardy, call toll free 1-800-8888; your call will be recorded and posted to the worldwide web with special incentives for the states of Sabah and Sarawak, and all Umno-run states when you do so. In other words, Sofea, clean up the frigging corruption mess.

Thirdly, and i am going to be thunderous on this - clean up the judiciary system. No one will invest his or her heirloom in a country where fairplay can be double-standardized. Would you if you are a politician? Oops, what am i saying here..'

A: 'I read you, Sir. But just as Idris Jala didn't say all that to his bosses because he already knew it would fall on deaf ears, they won't do all that for the rakyat.

My reading of them is that when they do something, they don't think at all of its consequences. Buy a dozen eurocopters at heavily marked-up price but ignore the financial situation that can be projected to 2019. We know how many examples the rakyat can quote. But do they even know the number of places where the losses are even bigger than the Sime losses? Do they, Sir?'

B: 'Oh no....Then change shall be the only constant in the rakyats' minds, Sofea.'

A: 'Any last words?'

B: 'Before i reincarnate, Sofea?

failing which

all because of things like...

so different from...

how was it then before, Sofea?

walla 28 May 2010 at 15:24  


B: 'And i have another question. It's puzzling me and it goes like this, Sofea. How can we be ranked the tenth most competitive nation today and at the same time face the spectre of being bankrupt in nine years time?'

A: 'Ah, a good one there, dear Sir.'

B: 'Indeed, the only inescapable conclusion we can thus draw is that our so-called vaunted competitiveness is founded on subsidies. But technically that is wrong because subsidies are an artificial distortion of market forces while competitiveness is a reflection of durable open market dynamics.'

A: 'Tun, we should air our concerns to the government.'

B: 'The rakyat are already doing so, Sofea. And let me tell you, they are so angry that things have come to this even the impending arrival of the World Cup series will not distract them from ventilating their anger at the marvelous financial planning of Barisan Nasional all these thirty to forty years.'

A: 'What can be done next, Sir?'

B: 'Open the economy completely. If the government is going to push the problem to the rakyat at the time the rakyat cannot make more to cover the extra they have to pay when subsidies are removed, let them at least get the chance to make more with new jobs and new businesses when the economy and market open up. I don't care where the money will be coming from or whether the investors will repatriate all their profits or leave some behind to reinvest. What we must tackle first is immediate - create more jobs, create better-paying jobs, create more businesses, expand existing ventures.'

A: 'But will the people be ready, Sir?'

B: 'Well, they better be. Do we have a choice, Sofea? Look around you, what do you see? Any ass-kicking local driving an industry to ass-kicking heights? Any announcement of superlative profits achieved from innovation or blue-ocean wins? Any trend-riding expertise available one phone call away? I am dismayed beyond words, Sofea.

Meanwhile our trainers and academicians are still living in their wonderland trying to salve their own parochial fears by toeing politically correct lines while our young are denied the chance to learn everything they must have in order to be relevant to the world. I feel like throwing up, dear girl.'

A: 'Can i get you something, Sir? A panadol, perhaps.'

B: 'Novocaine for my toothache may help. Or a hot cup of alicafe doused in tongkat ali, please.'

A: 'Sir, that's not healthy for your heart.'

B: 'Since this is a special day, i hope to go earlier and perhaps be reborn a norwegian.'

A: 'Ooh? why Norway?'

B: 'It has the best unemployment benefits in the world, Sofea. That can't be worse than opening your cupboard and seeing all those packets of mi seegar falling out, no? Come to think of it, the way we are lunging forward in our situation, we may have to try some tree barks instead.'

A: 'But there are no more trees in the city, Sir. Perhaps, they have all died from the sulphurated rain courtesy of our special-grade petrol fumes.

Tun, i think we need to be more positive-minded. What to do?'

walla 28 May 2010 at 15:24  

A: 'Sir, why the snarled look?'

B: 'Sofea, i am snarling between a smile and a grimace. What do you expect from someone who just had a cardiac arrest looking at the numbers?'

A: 'Oh dear. Grimace i can understand but why the smile, Tun?'

B: 'Because for years i knew it would one day come to this. All the imbecilic projects and stupid procurements are simply not sustainable. Now they are making the rakyat pay for their greed and stupidity.'

A: 'We shouldn't blame Idris Jala, Sir. After all, he's new on the job and probably made the suggestions after going through the numbers with his group. The mandate given to him must have been to justify the removal of subsidies. That would explain how come everything short of the kitchen sink was thrown into the calculation of what the government purportedly subsidizes. Hah! what about government services as well? It's also a socially subsidized service, no? So why don't they outsource the government to the lowest bidder and save some money to reduce the removal of subsidies? Let those nincompoops trying answering that.

Anyway, he must have first presented the findings to that wooden Cabinet. We can imagine the very moment the truths all spilled out - the looks of horror, the beads of sweat in that chilly room, the clearing of throats and those fixated pock-marked poker faces. You know, that cabinet table is so long it takes a few seconds just for one member to see another member from one end to the next.'

B: 'Haha! dear Sofea. You're cute. Personally i would prefer Maya Karin (cough) but only as Pontianak. Whose vision now preys my mind as i look at Idris' slides. OMG, (feigning surprise), how the hell did we get into such a frigging mess?'

A: 'I too am floored by the conclusions presented to us, Sir.'

B: 'Sofea, help me with something, won't you? This is 2010. The projection is national bankruptcy by 2019 unless subsidies are removed. So i ask a question - how were we doing nine years ago, say 2001? I remember 9/11 hit New York and much of the tech companies there nosedived. The global economy went down as well and many people were retrenched. We were somewhat affected...but we had our resources and they helped pull us through. Oil was our key resource.

Now Idris is saying we will be a net oil importer as early as next year. Exactly what dear walla has been saying and saying (that poor sweet and available girl).

What i see that means is this: we have so far been earning bonus from exporting our high-grade low-sulphur oil and importing lower priced low-grade oil. Effect on the environment notwithstanding, that has earned us extra revenue. Now come next year that extra revenue is going to be nullified by the cost of the extra oil we will have to import to meet domestic demand. On top of that, we will suffer more cost of oil imported, depending on its market price. It's a dynamic i wish the government has pinned down and let everyone know. We need to know because oil, and thus petrol, fuels inflation in everything - from electricity costs to transport charges to chemicals and food, and then indirectly into everything else. It's a sticky multiplier, malignant retrovirus if you will. Because if we become high-cost, our domestic investment will have to be high-priced which will reduce our export competitiveness. At the same time, we will be less attractive to foreign investors at exactly the time we need them the most to achieve high-income in ten years time, a period too short for our own domestic industries to ramp up high-value exports. Ask Proton, for example.'

A: 'I share your concerns, Tun. In making that statement, the government is also saying as much that Petronas hasn't been able to find a solution to this net oil importer problem.

In other words, there has been no significant new oilfield discoveries all these years which would have ensure we won't be having a new energy bill that no one in this country can afford to pay.'

Anonymous,  28 May 2010 at 15:41  

Ibrahim katak should come out and call Umno ungrateful. After all, Malays voted for BN in the Hulu Selangor to ensure they win. With the removal of subsidies which race will lose the most, obviously the Malays. They represent 60% of the population and most of them have bigger families than non Malays and will suffer most.
Strange he didnt make much noise when Umno gave his Chinaman buddy the 500 million gambling license gift. Tak boleh lawan taukeh.

Anonymous,  28 May 2010 at 15:49  

(1)Our stupid gomen have not improve our economy yet and now asked his henchman to warn us of the impending cut in subsidies. Just imagine the consequences of inflation once this is implemented. We have one of the lowest wage rates for semi-skilled labors & this will hit the workers in this category the most.

(2)Instead of addressing where the leakages are coming from and putting a STOP to all the wastages to address the deficit, our gomen instead goes for the easy way out -cut the subsidies!

Is this how a caring gomen take care of its rakyat? BN gomen= Barang Naik gomen, pttuii!

PANJI HITAM 61 28 May 2010 at 15:56  

You wrote,
"Don't lab here and there. Dont open day here and dont open day there. Open everything.

Rocky Bru wrote,
"That's why many of us Melayus inside and outside of Umno have been working so hard these last few years to weed out those Melayus in Umno and their friends outside the party who enrich themselves at the expense of others."

Very good one, Dato ...yes, panji will open more very soon.

Anonymous,  28 May 2010 at 16:08  

Reading all the comments here and in all the blogs, IDRIS JALA is being vilified. IMHO The problem with all the curses is everyone is pissed off, but PLEASE REMEMBER SOMETHING EVERYONE SEEMS TO HAVE MISSED, WHY SHOOT THE MESSENGER?

Than you have those morons out there calling him all kinds of names and what not for being a non-muslim!!!! but isn't he also a BUMIPUTRA, A MALAYSIAN? Reading between the lines I get the impression though, what Idris Jala has said with the RM74 Billion figure is only part of the truth, I wouldn't be surprised the whole picture is 3 to 4 times worse.

Ordinary tax paying people like me, a non bumi, just surviving above the poverty line but free with a conscience of paying my own way, I am pissed off.

HOW MUCH OF THAT SUBSIDY,(is the bumi-NEP subsidy which we the non bumis have been paying for,) will also be greatly reduced is actually passed down to me the great unwashed in the first place. which according to Umno- PERKASA KETUANAN SYNDICATE> the pendatang- but a tax paying pendatang though, how much of this susidies, like education scholarships, tolls, APs etc have actually benifited me- THE NON BUMI?
We drill for our own oil, so wtf is the govt talking about subsidising my petrol, when you are screwing me through tolls, PDRM, road tax, sales tax, import tax and pukiwak taxes for parts of my 1995 proton. Put it like thislah, I am a porous rock which has been squeezed for all it's moisture and nutrients till all I remain is just the solid core, the BN GOVT WANTO Now SQUEEZE SOME-MOREKAH, baju, seluar, underwear sudah ambil sekarang saya tertinggal telanjang, THE BN- UMNO GOVT. (WBTW TOLD ME TO TUKAR CARA HIDUP) NOW WANTS ME TO BEND OVER AND GET FARKED UP THE BUTT!!!!! No need lah, before anybody wanting to put their thingy up my butt, I taruk them balik. NO MORE BN SUPPORT, NO MORE TAXES, My children are over seas so I will make appropriate plans by first telling them, tausah balik, fark all these pukiwarks who after screwing me with their nep bullshite. BIARKAN, ENOUGH IS ENOUGH. TUKAR CARA HIDUP, MY ARSE, I WILL TUKAR THE CARA I VOTE FROM NOW, WITH ALL MY PENDATANG RELATIVES.
The putras how? Will the direct nego. contracts and palaces and shiok sendiri longest roti chanai mentality continue? Who is bodoh now, who will suffer the most- all revolutions that happen have a very similar theme at its very core, when corruption among the elites and their cronies lead to abject poverty and hunger among the masses- the orang kampung, especially the malays, their anger cannot be controlled, how many bullets will the POLICE OR ARMY SHOOT, IF the majority of the rabid crowd is of their own kind, people in the same shoes as them, poor lowly paid civil servants- the scenario I see is NCO's turning their weapons against their own officers> maybe a military junta is an answer, roll out all the elites and line them up against the walls. UMNO HAS NOT YET SEEN THE FULL EXTENT OF THE RAKYATS ANGER, SQUEEZE SOME MORE, WHEN THERE IS NO MORE TO SQUEEZE, YOU WILL MEET WITH A MASS AMOK UPRISING.Only those who have quick exit plans will survive, the rest will make peace with their maker. Impossible? Watch and learn. tsunami 08 also impossible what.
Rakyat Malaysia

Anonymous,  28 May 2010 at 16:13  

BTW info from deeeeeep inside, regarding the 2 parcels of oil producing oil plots given to Brunei, that is badawi's golden handshake to himself and family for his old age. Held through international proxies.
Mengapa tak bankrupt. Go and korek deep enough, that's why TUN is so pissed off, he didn't think of it first.

Anonymous,  28 May 2010 at 16:22  

Hi Dato,

Allow me to make my humble comments.

1. BN had been elected to govern the country for more than 52 years and from the beginning in our formative years our economy was on solid foundation.

2. The question on everyones's mind is why our PM is now pushing the ball into our feet to make the decision on whether to accept the subsidy cut or not ?

3.Is it not the responsibility of a good government to be able to steer the economy into safer waters ? The BN government was given the mandate to rule and make these steely decisions for the majority of 24 million Malaysians.

4. What went very wrong ? Didn't we have capable Ministers and senior Ministry officials to be able to digress and debate what is the best option for the country ?

5. Why at this very moment on the eve of a possible " bankrupt " Malaysia that the alarm bells are now sounding ?

6. Well, it is at this crucial stage of our country's development that with the subsidy cuts, the very people who are going to be affected are the hardcore poor in the kampongs, interiors and new villages as well as the urban poor.

7. How are they going to survive the day to day hardships ? They have schoolgoing children and need to pay higher bus fares, pocket money for the kids while in school, paying for higher essetial food items like sugar, flour, cooking oil and higher education fees. Mana lah cukup!

8. What do the government expect the ordinary rakyat to do with no foreeseable increase in their take home pay ? To beg steal or what have you ?

9. The burning question on everyones mind is how come our government under the stewardship of BN allow such a rich country like Malaysia to happen ? I would have expected Indonesia to be hit first and ironically it is us.

10. Talking about plugging leakages and financial fraud and mismanagement. Didn't the government learn ? The PKFZ fiasco, the submarine that cannot dive, the fighter jets that has no engines, the Maminco tin propping up issue, the BMF scandal, the MRR2 cracks, the stadium roof collapse in KT, the bailouts regarding MAS, Halim Saad's company and of course the PMs own son's company Konsortium Perkapalan and many more.

11. Where did the money come from ?
The answer is obvious.

Anonymous,  28 May 2010 at 16:29  

RM 12,900 per head
X 28,000,000 approx. population
RM 361,200,000,000.00
The cat's out of the bag, actual deficit and subsidies are worse,
x 4++
We Malaysian also pandai to read between the lines

alan hiley 28 May 2010 at 16:31  

A subsidy is not necessarily some cash paid out to the subsidised party. It may be tax and duty exemption, preferential or subsidised interest rate of financing,etc in other words it may be cash issued out or cash not received (opportunity cost like the case of a tax exemption)- right dato'?

Subsidy is also not necessarily given to the rakyat only. A subsidy may also be given to business entitities or the industry - right dato'?

The RM74billion is a huge number and it gives the impression, that must be it, surely there aren't anymore subsidies, like surely it cant be more than humongous figure.

But wait a minute...

Doesn't the industry (the private sector -commerce and industry) recieved any subsidies at all.

Idris Jala certainly didn't give any hint that there are subsidies given to the Industry at all.

I wonder what the following list of things are? :-
Main Incentives for Manufacturing Companies
Main Incentives for Manufacturing Companies
Pioneer Status
Investment Tax Allowance
Incentives for Relocating Manufacturing Activities to Promoted Areas
Incentives for High Technology Cos
Incentives for Strategic Projects
Incentives for Small & Medium-Scale Companies
Incentives to Strengthen Industrial Linkages
Incentives for the Machinery and Equipment Industry
Incentives for the Production of Specialised Machinery and Equipment
Additional Incentives for the Production of Heavy Machinery
Additional Incentives for the Production of Machinery and Equipment
Incentives for Automotive Component Modules
Enhanced Incentives for the Utilisation of Oil Palm Biomass
New Companies
Existing Companies That Reinvest
Additional Incentives for the Manufacturing Sector
Reinvestment Allowance
Accelerated Capital Allowance
Accelerated Capital Allowance on Equipment to Maintain Quality of Power Supply
Accelerated Capital Allowance on Security Control Equipment
Incentive for Industrialised Building System
Tax Exemption on the Value of Increased Exports
Group Relief
Incentive for Reinvestment in Food Processing Activities
Reinvestment Allowance
Incentive for Reinvestment in Resource-Based Industries
Incentives for Modernising Chicken and Duck Rearing
Accelerated Capital Allowance
Agricultural Allowance
Accelerated Agriculture Allowance for the Planting of Rubberwood Trees
100% Allowance on Capital Expenditure for Approved Agricultural Projects
Tax Exemption on the Value of Increased Exports
Incentives for Companies providing Cold Chain Facilities and Services for Food Products
Double Deduction for Expenses to Obtain “Halal” Certification and Quality Systems and Standards Certification
Double Deduction on Freight Charges for Export of Rattan and Wood-based Products
3. Incentives for the Biotechnology Industry
3.1 Main Incentives for the Biotechnology Industry
3.2 Incentives for Investment in a BioNexus Status Company
• Investment by a Company or Individual in a BioNexus Status Company
• Tax Incentives for Mergers and Acquisitions with a Biotechnology Company
3.3 Biotechnology Funding for Bionexus Companies
4. Incentives for the Tourism Industry
4.1 Incentives for the Hotel and Tourism Industry
• Pioneer Status
• Investment Tax Allowance
• Enhanced Incentives for Undertaking New Investments
• Incentives for Reinvestment in Hotels and Tourism Projects
• Incentives for the Luxury Yacht Industry
4.2 Additional Incentives for the Tourism Industry
• Double Deduction on Overseas Promotion
• Double Deduction on Approved Trade Fairs
• Tax Exemption for Tour Operators
• Tax Exemption for Promoting International Conference and Trade Exhibitions
• Deduction on Cultural Performance
Incentive for Car Rental Operators

alan hiley 28 May 2010 at 16:33  

Incentives (cont'd)
5. Incentives for Environmental Management
5.1 Incentives for Forest Plantation Project
5.2 Incentives for the Storage, Treatment and Disposal of Toxic and Hazardous Wastes
5.3 Incentives for Waste Recycling Activities
5.4 Incentives for Energy Conservation
5.5 Incentives for Energy Generation Activities Using Renewable Energy Resources
5.6 Incentives for Generation of Renewable Energy for Own Consumption
5.7 Accelerated Capital Allowance for Environmental Management

6. Incentives for Research and Development
6.1 Main Incentives for Research and Development
• Contract R&D Company
• R&D Company
• In-house Research
• Second Round Incentives
• Incentives for Commercialisation of Public Sector R&D
6.2 Additional Incentives for Research and Development
• Double Deduction for Research and Development
• Incentives for Researchers to Commercialise Research Findings

7. Incentives for Medical Device Industry
7.1 Incentives for Medical Devices Testing Labaratories
• Companies Investing in New Testing Laboratories for Medical Device
• Companies Upgrading Existing Testing Laboratories for Testing Medical Devices

8. Incentives for Training
8.1 Main Incentives for Training
8.2 Additional Incentives for Training
• Incentives for Unemployed Graduate Training Scheme
• Deduction for Cost of Recruitment of Workers
• Deduction for Pre-employment Training
• Deduction for Cash Contribution
• Special Industrial Buiding Allowance
• Tax Exemption on Educational Equipment
• Tax Exempetion on Roayalty Payments
• Double Deduction for Approved Training
• Human Resource Development Fund

alan hiley 28 May 2010 at 16:34  

Incentives (cont'd)
9. Incentives for Approved Service Projects
9.1 Main Incentives for ASPs
• Exemption under Section 127 of the Income Tax 1967
• Investment Allowance (1A) under Schedule 7B of the Income Tax Act 1967
9.2 Additional Incentives for ASPs

10. Incentives for the Shipping and the Transportation Industry
10.1 Tax Exemption for Shipping Operation
10.2 Exemption from Import Duty and Sales Tax on Prime Movers and Trailers

11. Incentives for the Multimedia Super Corridor
11.1 Main Incentives for MSC Status Company

12. Incentives for Information and Communication Technology (ICT)
12.1 Incentives for the use of ICT

13. Incentives for A Knowledge-Based Economy

14. Incentives for Manufacturing Related Services

15. Incentives for Operational Headquarters
15.1 Approvals for OHQ Status, Incentives and Other Facilities
15.2 Equity Requirements
15.3 Incentives
15.4 Others Facilities
15.5 Expatriate Employment

16. Incentives for International Procurement Centres/Regional Distribution Centres
16.1 Approvals for IPC/RDC Status
16.2 Equity Requirements
16.3 Incentives
16.4 Others Facilities
16.5 Expatriate Employment

alan hiley 28 May 2010 at 16:34  

Incentives (cont'd)
17. Representative Offices and Regional Offices
17.1 Activities Allowed
17.2 Activities Not Allowed
17.3 Equity Requirements
17.4 Incentives
17.5 Expatriate Employment

18. Other Incentives
18.1 Industrial Building Allowance
18.2 Industrial Building Allowance for Buildings in MSC
18.3 Infrastructure Allowance
18.4 Deduction of Audit Fees
18.5 Tax Incentives for Venture Capital Industry
18.6 Tax Incentive on Costs of Dismantling and Removing Assets
18.7 Incentive for Acquiring Proprietary Rights
18.8 Tariff Related Incentives
• Exemption from Import Duty on Raw Materials/Components
• Exemption from Import Duty on Imported Medical Device for Purpose of Kitting
• Exemption from Import Duty and Sales Tax on Machinery and Equipment
• Exemption from Import Duty and Sales Tax on Spares and Consumables
• Exemption from Import Duty and Sales Tax for Outsourcing Manufacturing Activities
• Exemption from Import Duty and Sales Tax for Maintenance, Repair and Overhaul (MRO) Activities
• Exemption from Import Duty and Sales Tax on Solar Photovoltaic System Equipment
• Exemption from Import Duty and Sales Tax on Energy Efficiency Equipment
• Exemption from Import Duty and Excise Duty on Hybrid Cars
• Sales Tax Exemption
• Drawback on Import Duty, Sales Tax and Excise Duty
18.9 Incentives for Export
• Single Deduction for the Promotion of Exports
• Double Deduction for the Promotion of Exports
• Double Deduction on Export Credit Insurance Premiums
• Double Deduction on Freight Charges
• Double Deduction for the Promotion of Malaysian Brand Names
• Special Industrial Building Allowance for Warehouses
• Incentive for the Implementation of RosettaNet
18.10 Incentive for the Use of Enviornmental Protection Equipment
18.11 Donations for Environmental Protection
18.12 Incentives for Employees' Accommodation
18.13 Incentives for Employees' Child Care Facilities
18. Other Incentives
18.1 Industrial Building Allowance
18.2 Industrial Building Allowance for Buildings in MSC
18.3 Infrastructure Allowance
18.4 Deduction of Audit Fees
18.5 Tax Incentives for Venture Capital Industry
18.6 Tax Incentive on Costs of Dismantling and Removing Assets
18.7 Incentive for Acquiring Proprietary Rights
18.8 Tariff Related Incentives
(i) Exemption from Import Duty on Raw Materials/Components
(ii) Exemption from Import Duty on Imported Medical Devices for Purpose of Kitting
(iii) Exemption from Import Duty and Sales Tax on Machinery and Equipment
(iv) Exemption from Import Duty and Sales Tax on Spares and Consumables
(v) Exemption from Import Duty and Sales Tax for Outsourcing Manufacturing Activities
(vi) Exemption from Import Duty and Sales Tax for Maintenance, Repair and Overhaul (MRO) Activities
(vii) Exemption from Import Duty and Sales Tax on Solar Photovoltaic System Equipment
(viii) Exemption from Import Duty and Sales Tax on Energy Efficiency Equipment
(ix) Exemption from Import Duty and Excise Duty on Hybrid Cars
(x) Sales Tax Exemption
(xi) Drawback on Import Duty, Sales Tax and Excise Duty
18.9 Incentives for Export
(i) Single Deduction for the Promotion of Exports
(ii) Double Deduction for the Promotion of Exports
(iii) Double Deduction on Export Credit Insurance Premiums
(iv) Double Deduction on Freight Charges
(v) Double Deduction for the Promotion of Malaysian Brand Names
(vi) Special Industrial Building Allowance for Warehouses
(vii) Incentive for the Implementation of RosettaNet
18.10 Incentive for the Use of Environmental Protection Equipment
18.11 Donations for Environmental Protection
18.12 Incentive for Employees' Accommodation
18.13 Incentives for Employees' Child Care Facilities

kuldeep 28 May 2010 at 16:47  

Mr Jala's track record as a "futurist" is not exemplary if based on his fuel hedge just prior to leaving MAS.Only the magic of accounting saved him from a fate worse then Zubir of SimeDarby who presided over a smaller loss.

Its not about subsidy but "judicious and austerity " budgetary measures that gives the optimal value add to the rakyat.

Obviously,MK1,2 and EPU boss have annointed Jala as the national scapegoat but eventually we will be the crash test dummies.

Anonymous,  28 May 2010 at 16:50  


The single most important subsidy which impacts every Malaysian directly and indirectly is the fuel subsidy.

Will the government be willing to cut excise duty on imported foreign cars and introduce open tender procedures for APs to mitigate the increased fuel cost?

There is no developed country that I know off which expects their citizens to pay 300% tax on a car and pay market fuel rates at the same time. We are not even counting the cost of APs.

Anonymous,  28 May 2010 at 17:02  

Kalau ya pun, janganlah bawa isu Anwar dalam perbincangan datuk. Biarlah mahkamah kangroo kita putuskannya.

kuldeep 28 May 2010 at 17:29  

We have only 9 years at max before we go bankrupt.PM will not follow the advise of Idris due to the potential political fallout.

Idris will be labeled the scare monger..and an opposition plant to belittle BN's exemplary policies.Idris is the Trojan Horse for PR.

Will MAS Internal Audit Comm recommend an oversight Directors Comm to look into the 2008 fuel hedge?I don't think so but who knows?

But,why worry cos economy is booming..the top 40 is 42% richer.There's the big huge devt profits from S'pore KTM land?Nusajaya?Sg Besi?RRI? to look fwd to.Petronas got billions of bucks..

And we can drink Coke bottled at a new RM 1 billion plant (with subsidized sugar) and have our data from Western Digital HDD (subsidized electricty)..

No worries..we are ok.

The lesson we can learn>>never keep ppl locked in 5 Star hotels (like Jala does for his labs)cos they can become confused and irrational.

Anonymous,  28 May 2010 at 17:30  

I like your comment on 'natural defence'.It does not take a trip by our ministers to Oxford to learn about it.All it takes is a trip to Saigon,now called Ho Chih Min City to visit the Cu Chi Tunnels.By just using primitive earth digging tools and natural materials such as bamboo pipes for ventilation the Vietnamese could defeat the Americans by having up to three levels of tunnels under a 200 kilometer area.
Unlike Sadam's Iraq who used concrete,the Vietnamese could easily clear the rubble when bombed because it is just earth.The holes were made for the small vietnamese size so the big americans could not get in.Even when the americans got their small tunnel rats in the viets could save their bullets by using bamboo spiked booby traps.

We spend so much on defense weaponry but so far I have not received any briefing or guidelines on what we,ordinary citizens must do in the event of a war.

samsaimon,  28 May 2010 at 17:58  

Dato Sak,

You are what you are.
What a waste of calibre !

Wenger J. Khairy 28 May 2010 at 18:26  

I think most of the commentators miss the point. Accounting RM 74 billion as subsidy can only be accepted by a a bona fide idiot - and thus should be restricted to the supporters of Tun Dr Mahathir.

What Dato has presented is the true account of what is known as "Transfer Payments". As what is shown, direct subsidies are only a very small fraction, the bulk of the numbers are due to overhead cost of Government operation in its bloated and inefficient sense.

On the other hand, the KPI minister in whose hands the national airline 's carrier cannot even make a sustained operating profit includes expenditure to run a public education system as a subsidy. No wonder MAS can't be profitable if this the HAIR raising aptitude of its senior management. Providing education, defense, universal health care and maintaining public infrastructure is the role of Government - thats why a Government exists in the first place.

In places like the US, student loans are guaranteed by the Federal Government, so there is nothing special in periodically making contributions to the

So in truth - the direct subsidy is perhaps at the most RM 10 BILLION but that too is shared with the IPPs whom is the brain child of that the worst PM in history of mankind.

And to defray the cost, the Government collects Petroleum Income tax. I am not sure whether this is a pure Petronas account or a combination.

So bottom line - subsidy at the most inflated level is RM 10 billion, not RM 70 billion.

Malaysians who consider themselves above the intelligence of an amoeba and thus not supporters of that worst PM in history should not be fooled so easily.

Wenger J. Khairy 28 May 2010 at 18:42  

If this Minister wants to talk about subsidy, lets talk about the subsidy given to MAS via its bloody WAU nonsense crap programme. Its USD 2 billion dollars that need to be paid off. This is a subsidy to MAS because the bill will be picked up by tax payers because of Idris Jala + Tajuddin Ramli (Mahathir's favorite son)

Anonymous,  28 May 2010 at 19:24  


I have to agree with Anon 14:39 on your small cheeky jab at Anwar. If only because it might trivialize an issue that may just prove to be our undoings. Your response was equally good and I hope long may we desist from smearing a person. Take Anwar to task for his actions but let us not judge based on innuendos.

The way I see it, while the subsidy issue is an important matter, very little is made known on why the deficit is so high in relation to the GDP. Again, everyone will have a theory and everyone may be spot on on the causes. Logically shouldn't the government look into these causes before prescribing the antidotes? And as many have said, the removal of subsidies may well be beneficial to the very few but harmful to the many that matters.

But I suppose being a typically naive Malaysian who have been told countless times that I owe my life to the largesse of government of the day, I may just be dreaming.

alan hiley 28 May 2010 at 20:14  

Thats a bloody long list of incentives and exemption of tax, duties....
What about grants? like the the RM100 million recently approved to be granted to an american company to do research on solar. What !!!?
Oh there are lots of other grants too- MOSTI grants, Bionexus grants, CIDB grants.
Lots of sugars, flour, scholarships and medication money given away to the private sector.
And all this while you're pissed off with the RM 1 billion MARA gets for scholarship to bumis.

What's my guestimate? All subsidies to the Industry including IPP gas, IPP diesel, Labour Subsidy and all the incentives, tax exemptions, holidays, vacations and honeymoons and cheap loans to SMEs and big boys too --> RM 80 billion per year is my guess.
RM 80 bil per year!!

Are the republicans and goldman sachs ruling the country?

Wenger J. Khairy 28 May 2010 at 22:42  

Allen Hiley,
The way you try and argue makes me sick to the stomach. You must be a Mahathir supporters because you don't know jack!

You want to know how the govnt runs a deficit?
Think the bloody stimulus program in 2008? 60 billion
Think the cost of just operating the civil servants? RM 42 billion, an increase of RM 4 billion year on year, with RM 40,000 per month going to the goons in Pemandu.
Think the cost of supplies? MoH alone requires RM 2.8 billion for supplies, but in case you get the wrong idea, only RM 700 million goes to the purchase of medicine. RM 807 million is required for supplies to "manage" the State Health Offices + additionally RM 381 million to manage the hospitals!

Of the RM 6 billion MOH wage bill we have RM 1 billion allocated to the Family Health Division with 0 disclosure! Additionally RM 900 million for management of the offices. Dont think that RM 6 billion wage bill goes to doctors and nurses.You must be a fool to assume that.

Govt revenues will max out at RM 160 billion. They can dream if they think they can get RM 180 billion on a sustained basis.

So govt is inefficient, spends a lot of money on "Pengurusan" - RM 9 billion on wages, RM 16 billion on overall (wages+supplies+transfer payments), hires a HAIR to scare the public, some wise guy tries to confuse the situation and in the end blames the public.


matklawar 28 May 2010 at 23:06  

This problem of Govt debt began much earlier and it has little to do with helping the poor. It started from the time Mahathir. To quote an example - Putrajaya: a town that cannot support itself finacially yet tries to potray an image of grandeur at the expense of income from other Federal Territories. Bakun is another example. Langkawi another fialed project burdening the public. Yet the Govt continue to make these project "feasible".Protectionism is another form of subsidy. The high import tax on cars allow local manufacturers to raise price even they are not competitive. Proton can only achieve cost effective through protective measures. Yet Govt continue to impose import tax. Is this not a form of subsidy? There are many more examples of infeasible projects forced down upon us if we care to look. That is why we are in dire straits now. We spent as though we have bottomless pocket. Before cutting subsidies across the board the first step is to plug economic leakages. Second to enhance revenues. But this can only be achieved if an equitable business environment is in existent. Given the current mistrust on Govt institutions this is indeed a very difficult task to achieve. Further, it is something that guarantees the survival of the current regime. Finally, to ensure that subsidy really benefit the target recipient. Without comprehensive database this is just unachievable. So we are caught is an irreversible downward spiral. Be prepared to become another Greece or Zimbabwe. Solution - migration.

kuldeep 28 May 2010 at 23:13  

I can't see the difference in Hiley's and Wenger's arguements.Bottom line is the government's inefficiencies,bloated bureaucracy,pork barrel politics and other similar misdeeds.

The only real solution is to have a new government or KJ as the PM if BN continues in power.

Wenger J. Khairy 28 May 2010 at 23:17  

Anon 16:06,
Before you go and get mental with the Non-Bumi pays all the nonsense crap, remember income tax accounts for only 11% of Government revenues. Bulk of revenues is the Petroleum Income Tax, Corporate Tax (RM 30 billion - both bumi and non bumis pay this, unless non bumis make all the profit and then give away grudgingly RM 30 billion) and Government GLC (strict bumi) ROI (exclude Sime Darby unless the fools borrow to declare a dividend. But they are fools so why not?)

So hope u see this from a BIGGER point of view!

flyer168 28 May 2010 at 23:32  

Alan Hiley 2:14,

Just to share this with you & all,

As Lincoln himself stated:

The money powers prey on the nation in times of peace and conspire against it in times of adversity.

The banking powers are more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy.

They denounce as public enemies all who question their methods or throw light upon their crimes.

I have two great enemies, the Southern Army in front of me, and the bankers in the rear.

Of the two, the one at my rear is my greatest foe. As a most undesirable consequence of the war, corporations have been enthroned, and an era of corruption in high places will follow.

The money power will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed.[25]

Wall Street has killed main street...


Anonymous,  28 May 2010 at 23:53  

Me plus the wife salary is 25,000 per year.Is this same as Dato Seri idris Jala calling as household income?
And if no more subsidy my cost go up by RM 12,500?That is can I be alive?

But if I don't agree to no more subsidy now,in 2019 when my children going schooling,the country already bankrupt.This meaning my children have no education?no doctor?no food?

Is my EPF also bankrupt if Malaysia become bankrupt?

Our beloved PM saying we are New Economic and I will get more money.How to be more money if Malaysia going to be bankrupt?

So,please YB Dato Seri can take my money now then making my children got no education,no food like pictures I see on TV of Africa.YB Dato Seri Idris pay salary one million ringgit so 12,500 not so much problem.

Why Malaysia become so bad now?Last time we are very good and we are very happy.Now,in 9 years we go bankrupt unless I give half my salary back to pay no more subsidy.Is bad because now Pakatan Rakyat disturb too much?

This is very sad day.I see my children sleep so much peaceful but they are innocent.We are bad because we waste and make them no more future.I pray that our bosses and big Ministers will help to suffer to save more money.Take bus to work like us.Eat nasi bungkus when big meeting.No more go see DisneyWorld.No more buy big machines like submarine,helicopters because if we are poor I thinking no one want to attacking us.Even bad man don't rob people in low cost flat.

So,I saying to YB Dato Seri Idris you can take away 50 % of my salary but don't make my children bankrupt.But before you do the taking away make sure it is not like your buying oil at USD 110 for MAS.

Thank you.

Mat Biasa

Anonymous,  29 May 2010 at 01:54  

Well, maybe we may have to start sending our daughters to work as maids if we cannot get them to work as managers in other countries.

Without subsidies and the extra cash STILL being siphon off... and to less 12,5000 per family would mean no more money to spend.

Malaysia with its huge cheap foreign labour continues to export money.

So logical choice... send our daughters to become heroines of the country like Philipines and send those money back.

Well like we said again again and again- there is no free lunch. Money MUST come from somewhere.

Yesteryears they weree able to get from lots of Professional and businesses. Today with massive losses last year plus top professionals leaving to work somewhere .. where do the rest of us stand?

Ask Ibrahim Ali .. to get( or steal) the 67% of country's wealth by sending his "daughters" to work as maids and maybe employed by those well do to Malaysians working overseas on big fat pay?

Look lately sooooo quiet because the latest issue is the Gambling licence. Silence ...

Really this country got this kind of people waiting for food on the table (provided by others)and shameless be a 67 (ask a cantonese guy what 67 means) LOL. really 67.

Red Alfa 29 May 2010 at 02:02  

Salam Dato'

Your critical take on Govt proposing cutting subsidies really got this posting one heck bumper harvest of passioned responses.

All this is you trying to tell the Kepimpinan cutting subsidies with all that Idris Jala's reasoning will be the harbinger of GE13 wipeout for the beloved UMNO?

For what is worth, please, Dato' don't ever let up on this issue.

Perhaps after more comments to your coming takes, everyone will see to the URGENCY of the cutting the wastages and leakages and not the cutting the subsidies.

Anonymous,  29 May 2010 at 04:22  

Mat Biasa

I share the same sentiment - since 2003 Islam Had Hari I also take that LRT to work and pay my tax also without fail

Children also can count only 2 times a year can eat best like pizza hut or maybe go out if got extra cash

Why only now strike out the subsidy?

Weird la this UMNO calculation

What happen that time raise RM2.78 per litre where all that money gone into?

That Khir Toyol also said bad move for PM to do this as expected backlashed or People sure get angry one

Aiyo we all die sure mati one like this even Zimbabwe also laughing watching us.

Anonymous,  29 May 2010 at 04:25  

Just cut the Corruption or commission for very goverment project, this would turn the budget Positive!!

Don't use the nice wording like waste or inefficient. It is simply Corruption!!!

flyer168 29 May 2010 at 07:28  


Let us all understand the ground rules of the "Global & National Elites", the Powers that be & their game plan....

There is always that "New Kid" on the Block....

Upon investigation, he seem to be the "Common Denominator" in all the Billion $$$ projects/failures in the past, present & possible future...

Just to share this with you....for the holistic picture.

We already have many, many, many senior Malaysians even from before our Independence, across the spectrum of soceity, the recent ones, the present ones and the future ones...

Who got enticed (Self Inflicted) into the world of "Connections, Glamour, Partying, Wine, Women & Song, $$$, Power, etc only to fall straight into the "Group's Network Tentacles" to be recruited into the "Brotherhood Cult"....

Also our ISIS heads incl our "Fort Knox" Bosses, etc also got roped into the G8, G20, Carlyle, CFR, Bilderberg, Illuminati etc Group Network...

There are also many, many more "Younger Recruits" in the past, the present & future from the Tavistock Institute network.

All of them are given secret assignments to penetrate their nation's database & Powers that be, etc...just like our MLM and our Triad strategy...

To be "Pawns/Perpetrators" to ultimately create chaos & destroy their nation into submission towards the NWO agenda...

From their Tertiary Educational background of indoctrination....
University of Pennsylvania
Wharton School of Finance & Commerce..

One of the prominent "brain trusts" of Tavistock, the University of Pennsylvania's Wharton School of Finance and Commerce (founded by Eric Trist) has become one of the most important Tavistock brainwashing institutions, insofar as "Behavioral Research" is concerned.

Wharton attracts clients such as the U.S. Department of Labor, which teaches how to produce *cooked* statistics at the "Wharton Econometric Forecasting Associates Incorporated".

This method was very much in demand as we came to the close of 1991, with millions more people out of work than was reflected in the USDL statistics.

This "institution" has graduated such *prominent* alums as Donald Trump, a shining testament to the "callous and glibly egotistical mercenaries" it churns out to do "its bidding".

Trump's daughter, Ivanka, also "graduated" (one can only wonder how many favors Donald had to agree to do in order for that feat to be accomplished!) from this pretentious brainwashing center." Unquote....towards the NWO Agenda.


New faces on UBG board following acquisitions - Monday September 22, 2008

The final revelation....

Do we still want to discuss & ague on the merits/demerits of the Subsidy issue???

Let us save our "Brain Power" towards "Prevention rather than the Diagnosis/Cure."

Knowledge is Power & to be "Forewarned is to be Forarmed."


Anonymous,  29 May 2010 at 08:59  


Everytime I pass Jalan Duta, I see this HUGE NEW Istana being built.Don't want to appear Durhaka but I believe the BRITISH QUEEN is a very prudent Monarch (It seems she sews to repair her own clothes). And she doesn't need new palaces as she already has enough. So when I see this ISTANA which probably cost a bomb and I hear Idris Jala says we are going bankrupt.....It doesn't seem real. Not with the Istana we are building and other projects the government is spending on?

Maybe Idris Jala is just fooling around with us or he is just lying

Joe Black

Anonymous,  29 May 2010 at 09:38  

Now that people has awoken, it is time to have the 3rd Force. More details on Jala blunders, wastages and leakages here
The 3rd Force

Anonymous,  29 May 2010 at 10:00  

Attending 'tahlil' at my friend house the other night. One of the guest informed us that he just started his gov's construction job along a busiest road in the city at RM297million and proudly announced he managed to get the extras RM from the actual estimated cost of RM90million. Whoa... RM207 million extra....

Don't think it is 'the only' one of this kind of arrangement... And did our Jala talked about this? Don't think so...

Anonymous,  29 May 2010 at 10:32  

Couldn't help to resist as to what you have said in many of your writings against the govt. I totally agree with your comments.
Lets talk about Idris Jala who was sent to MAS supposedly to 'save' MAS but what happened. One could easily get the answers by talking with the MAS insiders. Yes. He further screwed up MAS before depature. He engaged certain people in his effort to 'rescue' MAS, some were cronies and some who were outside the aviation industry to understand the abc's of the industry. Final analysis, he further screwed up MAS. The account that was shown to say that MAS was in the 'black' was derived from ALL the MAS assets that were sold out just to show MAS's account in the black. I could do that. Now, they have put ex flip flop PM as MAS adviser. So what much do you expect. Thats Idris Jala's bit of introduction. The rest is history. Till today the so called 'report cards' on Ministries has yet to prove anything. Good example is the PDRM. What have they acheived. Shooting innocents?
Now, it the turn of subsidies to take a whacking from the Idris Jala camp. He is just a tool. Rhe govt I perceive has already decided which subsidies are to go. The Reuters has carried this in their report. As usual, Jala is not looking at the malpractices of the govt to save the billions. He is being told to touch only on subsidies given to the rakyat. If Jala has any moral and any conscience in his soul, he should put forward decisions that require the govt to take positive steps to save the billions squandered by the ruling elites. Can he ask the govt the billions spent on unnecessary spendings. Good example the money spent on Formula 1 team. Is it the govt's responsibility to run automobiles. Internationally it's the auto companies that put their cars on the track to gain public support for their brand. What's the Malaysian govt doing spending the tax payers money on the track. I could go on writing but 'rasa muak' with the govt's hypocrisy.
Look at the Malaysian cabinet set up. Does a small country with a total population of less then 27 million need a cabinet thats filled with 32 ministers not included the assistant ministers and the hundreds of 'sectaries'. Now all these ministries need MONEY to function beginning from salaries logistics and the functions of their existence. We the rakyat with a bit of intelligence know that these oversized cabinet is done to 'accomadate' the various factions within UMNO and to accomadate the other component parties. Is this not a waste of rakyats money.
If at all Jala is genuinely concerned of saving the country from becoming the next GREECE, please give your tru, teas TRUE comments and resign from the govt's payroll coz Jala is also a factor in the wrongly spending of the rakyats money. Till then, we the rakyat wait in suspense to watch the nation go down.
I call upon Dato and all Malays of right thinking to join effort with the opposition to save this country coz when this country hits rock bottom the rich malays will not be left out from the ordeal.

Jebat Jr,  29 May 2010 at 10:42  

ayat yang paling glamer bagi pihak kerajaan dan penyokong tegar kerajaan

Anonymous,  29 May 2010 at 10:52  

We have seen a number of bloggers from Malaysia, sadly all Muslims selling their soul to the UMNO/BN govt after becoming 'acclaimed' bloggers.When the rakyat has become fond of their writings and their hammering of the govt of UBN, they in return become 'acclaimed' or well known. I sincerely hope and pray to Allah that you are one Muslim who is holding to the truth as demanded by God in the QURAN.
My personal plea, 'Please work for the good of the country and it's people and ALLAH shall repay your kindness in 'janaat'. Afterall, money and position are only temporary and 'Not applicable' after death.
I have seen good people when they dies their funerals are well attended. Don't compare their funerals with top leaders of the country whose funerals are also well attended. There is a difference with the crowd attending them. I leave it to the readers imagination. TQ. Keep on writing SINCERELY Dato.

Anonymous,  29 May 2010 at 12:29  


Looking at the numerous comments, your article truly touched the nerve centre of us all.

Whatever it is, little can we change the past mistakes of the government. However all of us can work together for a better Malaysia.

Recognising the present dire financial state of the nation is but the first step. And making tough decision is the only way forward to a better future for all the 'rakyat'.

kuldeep 29 May 2010 at 12:42  

“(Capacity payment) per month would be RM30 million for this year. For coal-generation plants, for the first year, we pay 50% of its full capacity charges. The full capacity charges will start from 2011, which would amount to RM1 billion for the full year,” Tenaga CEO Che Khalid was quoted as saying in The Edge.

Electricity from "non subsidised" (gas prices based on MFO S'pore posted) gas plants cost 40 sen/KWh whereas coal gen electricity is 18 sens per KWh.Thus running JIMAH can save almost RM 3 bil per year i.e almost 60% of domestic consumer electricity bill.

The issue here is of cos GAS is subsidised whereas Tenaga have to bear the cost of COAL at full market price.As an entity Tenaga will maximise the CHEAP gas but as a nation we ,the rakyat is asked to be burdened because of the "subsidy anomaly".

With current generating margin of 56%,there is ample scope to maximise coal and reduce expensive (if unsubsidized) gas.

I believe,there are ways to optimise the generation mix in a holistic manner and iron out the anomalies for the sake of the rakyat. Pen pushing Drama Queen approach of Mr Jala is too superficial to understand the intricacies.

Habib RAK 29 May 2010 at 14:17  

AK 47, Collectively, all possible suggestions have been given to the UMNO/BN government. We all know that the root of the problem is corruption. Until we solve the corruption problem, no amount of good measures will be able to contain the rising debt. You cannot fill the barrel, if the big hole is not plugged! Its very obvious to me that the only way to save our country is to boot out the UMNO/BN government. This government is the one who has put us in this cronic situation and they are addicts to corruption. There is no way they will self medicate.

alan hiley 29 May 2010 at 17:00  

The poor complain; they always do
But that’s just idle chatter
Our system brings reward to all
At least all those who matter.

alan hiley 29 May 2010 at 17:30  

All I am trying to point out is that i) the list of subsidies that totals RM74 billion according to Idris jala is not exhaustive.
ii) the private sector also receives a lot of subsidies

Do you agree or do you disagree, wenger?

Just answer that first, don't try to be a smartass.

Khun Pana aka johanssm 29 May 2010 at 17:30  

The NEP is part of the subsidy.
Can't deny that.
Removal of subsidy also means removal of the NEP.
NEP cost a lot and somebody or somewhere are subsidizing the NEP right?
Why umno is briefing to the public that subsidy removal will only affects prices of fuel , electricity , sugar , highway tolls and rice (maybe more than those items )?

Why not trim down our giant "fleet" of govt servants as we have more than 1.2 million govt servants. Many depts overlapping each another functions as well.
The govt is overspending and wants to pass the cost to all of us in order to cover their arse.
In private sector if the CEO fails to perform . The shareholders will kicks out the CEO.
This is a clear signal that najib & rakan rakan will be at the helm for one term.

Unknown 29 May 2010 at 19:23  


Looking at the Feedback you are getting after your comments, it looks like the ruling Cabinet is made up of 2 Categories of Ministers:

Category 1) The likes of Idris Jala and others whose job is to crap on the people about how the country is going bankrupt and they should start living with as little as possible.

Category 2) DS Najib and the Aristocrats, whose world is Business as Usual, i,e Yelling slogans of Rakyat didahulukan (whilst the rakyat are being crapped on by the other bunch)and Spend like there's no limit. Throw more money to fish for votes and seats, More 1Malaysia Celebrations, Martha Steward and Ramsay for Rosmah and endless other shopping lists.....

If DS Najib is not careful, he may end up tasting the RAKYAT's world when he is thrown out in the next elections.

Wenger J. Khairy 29 May 2010 at 20:51  

Allen Hiley,
I disagree. The number RM 80 billion as a subsidy can only be accepted by the mentally deranged. Why not check out the amount of money the Govt used to earn on tarrifs - its only abou 4 billion or so.

My question to you is this. Are you mentally deranged to suggest there is anything near an RM 80 billion subsidy per year?

Just answer yes or no

kuldeep 29 May 2010 at 21:21  

Idris got Hiley & Wenger right where he wants them to be i.e confused and arguing on semantics.

Idris never defined "subsidies"..he just threw a number and a few kitchen sinks to scare us to complete submission.Mat Biasa is driven to suicidal limits and is ready to sell his soul to the Jalaman.

Of the opex of 160 billion Jala reckons 74 bil is subsidy i.e 45%.It goes to the rhetoric as to whether buying a candle light exclusive dinner for a gal is a subsidy or an investment?If ur Brad Pitt,reckon its a subsidy but for us mortals its an investment.

I would also think paying most Ministers more than 6000 per month is a subsidy ( for the value of output)..thus we taxpayers are subsidising the Cabinet & crew about 60 mil per year.This is not inclusive of consequential losses..which historically ranges between 160 to 288 bil depending whether ur talking about the Sleeper?or ur believer of Wain?

Thus,simplistic approach..I would guess the subsidy i.e funds given with no specific long term output target is about 24 billion.Matches nicely with the amount they're targetting to save in 5 years ;if you assume inflation is non issue of course.

Jala is ok as long as he is not expected to do petrol shopping.

Are You Gonna Go My Way,  29 May 2010 at 21:56  

Looking at the response you’re getting….we don’t need any Lab….just ask Jala to read all comments..That will at least save government expenditure instead of renting some convention centre.

Is cutting back on subsidy the only life or death decision to make? What about using our own resources (the human capital) to the maximum.. .there are plenty of geniuses waiting to lend a hand to this country but they’re being denied chances to prove their worth.

How many times have Malaysian invention and product or system been rejected by government agencies simply because it was not made in USA or made in France? They prefer to spend 20million instead of 1million on the same product.

How to ….Lu Tolong Gua, Gua Tolong Lu….if you don’t believe in our capabilities..

Some commented here that we should change the government…..kick out UMNO and Barisan Nasional..

While I respect their wishes, I don’t believe that those in power now are UMNO or Barisan politicians anymore…those are free loaders, free for all…of a different species . They don’t belong to any political group…how can they belong to UMNO or Barisan….its absurd..

people without principle don’t belong to any group……I just cant figure out where to put them..Democrat? Republican? Communist? Socialist? Islamic?.......

I guess “The Devil” is the best to describe them…

Anonymous,  29 May 2010 at 22:58  

If I remember well, sugar king was Robert Kuok. Recently, FELDA Holdings bought over sugar from Robert Kuok and immediately raised the sugar price by 20 cents. The question is, Di Felda gain this 20 cents or was it someone else at the helm of Felda who made the extra buck from this deal. Can the MACC investigate to determine where the profit of 20 cents wnet to.
Today, there seems to be a sugar shortage? The KPDNKK are running helter skelter looking into the various outlets in their hometowns to determine where all the sugar has gone to. I am also wondering where has the sugar gone to. Is it somebody in Felda is hoarding untill the govt declares a price hike. Then again, will it be Felda that is making the profit or someone from the UBN govt wants to cash in for the coming general elections or repay whoever financed the 'turning over' of PR kataks to the UBN fold.
Can we ask some independent accountants ( price waterhouse )to do the Felda's auditing to see where the 20cents profit went to.
This is a question of wrong doings. The govt of UBN has been doing wrong doings for the past 50 plus years. It's high time they are ousted but how to do it when people like you Dato, refuse to put your foot down. See what the MIC Mugilan declared,if the Indians do not turn up this sunday to protest against Samy Vellu, he will quit and go back to his buisness. So Dato, please be brave enough to take a side. It's no point trying to save a ship that is already destined to hit rock bottom. The UMNO today isn't UMNO 1946 when teachers and normal people head the divisions. Today it's corporate UMNO. It's all done by Mahathir and it's not easy to reverse a system thats running for the past 22 years.
So, Dato bring your fight in the open and take sides. Side the truth and Allah will guide you.

Wenger J. Khairy 29 May 2010 at 23:36  

I am not confused. If you know what I do in the background before I shoot my mouth off you would know that everything I say has been backed by verifiable fact. I have thrown so many numbers - just prove any single one of those numbers wrong and I will shut up. The details are in the Government Budget, approx 200 pages thick. You can download from the Treasury website

Subsidy is an economic term. Its treatment is based on the rules of economics. The Government is not a bunch of fools in the sense they themselves know how to account for it. Its under the subcode for the Operating Budget e.g. 10000 is for emolument, 40000 is for transfer payments. Transfer payments are payments made without a beneficial return in service i.e those transactions are excluded from GDP. The bulk of those payments went to service the debt, service pensions, the Government themselves, IPP cronies and a measly pitiful amount went to the people. That measly pitiful amount that went to people and the IPP cronies is the amount which we call subsidy. Jalanomics says that this number should be inflated to RM 70 billion. He is talking rubbish.

Larger question - will Malaysia go bankrupt with or without the subsidy cut? Quick answer - cut all the subsidies i.e oil, sugar and flour, Government will still go bankrupt because that number is a pitiful small number. Btw, the Government cut this number by RM 10 BILLION for 2010 budget.

To avoid bankruptcy - cut the development budget by half i.e less monies for cronies. Will they, won't they...hmmm I wont answer that.

Donplaypuks® 30 May 2010 at 00:01  

Wenger KJ & Allen Hiley

I think we are all on the same wave length on this issue and so let's be friendly.

However, I have to agree with Wenger that other than petrol, rice, flour and cooking oil, the rest of the $74 billion are not subsidies.

$10 billion Govt debt servicing, ex-gratia gifts of $1 billion to KLIA. $5.2 billion pension cost and $5.74 billion for MARA, UITM (why aren't these budgetted under the Ministry of Education??) etc are certainly NOT subsidies.

As for the list provided by AH - capex allowances, pioneer status etc. - these constitute INCENTIVES for re-investments etc. and there is a direct correlation to FDI's and stimulus provided for local private sector growth and employment. ALL advanced western economies provide these incentives as well.

In a level playing field of course such incentive would constitute indirect subsidies but otw its fair game.

It's therefore clear the PM Rosemajib and Jala are using red herrings to distract us from the
real problem - the elephant in the
room national debt of $362 billion which is entirely attributable to mismanagement by successive UMNO/ BN Govt. There's no two ways about that!!!

I reckon we can easily add about $80 billion to our reserves over 5 years ($16 billion per year) if we re-negotiate one-sided contracts awarded to IPP's, toll highway operators, water monopolies and an intial 5% downsizing of the civil service (annual cost $42 billion)!! There's also that unnecessary $8 billion light manoeuvrable tanks contract to DRB Hicom we can shelve permanently!!

Yet Jala and Rosemajib are completely silent on the obviously workable solutions!! Croney politics at work again?

we are all of 1 race, the Human Race

Anonymous,  30 May 2010 at 00:50  

Charge more tax on luxury items but please don't cut subsidy on items that to be used regularly among the poor.

For example, tax on the imported rice could be hiked in order to add more subsidy to the locally grown rice.

By increasing tax on the luxury cars which consumed large amount of gas, tax on the locally assembled cars (low fuel con) could be reduced further.

Anonymous,  30 May 2010 at 00:52  


I think you should read this document Minsky's Financial Instability Hypothesis.

Kuldeep, don't argue with Wenger. The guy knows his staff


Anonymous,  30 May 2010 at 02:58  

Attention Perkosa & Bahim Ali Baba a.k.a "Theres nothing wrong working with the chinese"


Where are your voice & the rest of the bru-ha-ha crew on this matter?

I dont see Perkasa saying anything on this?

A bunch of Morons - Perkasa my ass

kuldeep 30 May 2010 at 12:17  

Wenger,mr Cheers..

not arguing..if u read wat i wrote..i reckon the actual subsidy is abt 28 bil i.e electricity,gas,sugar,flour,toll rates (compensation to toll owners for not increasing toll rate as per contract) ..

Wat I am trying to get across is that a big portion of the above goes to industry/commercial.Presumably Coke pays same price for sugar as we do?And don't forget the industries churning less healthy stuff such as cigarettes,snack food,sweets,alcoholic drinks are also enjoying subsidised goods n services.

Idris says sugar subsidy is almost a billion.On household basis its RM 200 per annum.If subsidy is a ringgit per kg..its 200 kg per household or 0.7kg per day?Thats some sugar.

Anonymous,  15 December 2010 at 12:12  

Merry Christmas and Happy New Year, may all your wishes come true!

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