Abdullah Badawi should adopt a caring and sharing economic policy by distributing Petronas profits to the rakyat to reduce their financial hardships from rising inflation and the impending fuel hike
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Speech at DAP Anti-Crime Leaflets
launching
by Lim Guan Eng
_________________________________________
(Prai,
Saturday):
Prime Minister Datuk Seri
Abdullah Ahmad Badawi should
adopt a caring and sharing
economic policy by
distributing Petronas profits
to the rakyat to reduce their
financial hardships from
rising inflation and the
impending fuel hike. The
government can no longer
maintain fuel price at
present levels with the
record rise in international
price of oil to over US$100
per barrel despite assurances
by Abdullah that oil prices
will remain unchanged for as
long as the Government can
sustain them.
The last petrol increase was
on Feb 28, 2006 when the
international price of oil
was less than US$60 per
barrel with a 30-sen increase
in the price of petrol to RM
1.92 a litre, diesel to RM
1.58 and liquefied petroleum
gas (LPG) to RM 1.75 per kg.
With the international price
of oil increasing by more
than 40% since then and fuel
subsidies expected to cost
more than RM 32 billion
yearly, the only reason that
fuel prices have not been
increased is due to the
expected general elections.
However fuel hikes are
inevitable and the government
has a responsibility to
reduce the people’s hardship
by following Singapore’s
example of giving cash grants
to low and middle-income
families.
DAP regrets that BN has
chosen to ignore the economic
hardships faced by the people
caused by rising inflation
with lies that inflation rate
is only 2% last year when it
is running at more than 20%
or that the country will go
bankrupt by using the RM 70
billion annual profits from
Petronas. Fuel subsidies cost
the country around RM 32
billion in 2006 and as much
as RM 40 billion annually
this year or next year if the
international price of oil
reaches US$100 per barrel.
Savings from fuel subsidies
should be transferred to low
and middle-income earners in
the form of cash grants. DAP
had suggested that those
earning less than RM 3,000
per month be given an annual
grant of RM 3,000 and
families with a combined
income of RM 6,000 per month
be given RM 6,000 annually.
Such a scheme would cost
between RM 30-40 billion, the
same amount of fuel subsidies
spent.
Every RM 4 spent on
development projects is only
worth RM 1, with the
remaining RM 3 lost to
corruption, waste,
inefficiency and leakage
For this reason DAP fails to
understand the perverse logic
by Deputy Prime Minister
Datuk Najib Tun Razak that
the country will go bankrupt
if the opposition reduces
petrol prices. DAP is not
suggesting reducing oil
prices but that the earnings
from Petronas be shared with
the people. From 2004-6, fuel
subsidies cost the country
more than RM 71.3 billion.
Would not the money be better
spent by distributing this to
Malaysians than inefficient
fuel subsidies?
Or is Najib half-right in
that the country will go
bankrupt not from the
opposition reducing petrol
prices but by corrupt
practices of BN leaders. US
Morgan Stanley had estimated
in 2004 that over the last
two decades corruption cost
Malaysia US$100 billion (RM
380 billion). With Petronas
earning more than RM 500
billion since it was
established in 1974, one can
imagine how much was stolen
and that only RM 120 billon
or 24% of the RM 500 billion
in Petronas profits were
channeled to the people with
the remaining 76% or RM 380
billion stolen by corrupt
officials.
In other words for every RM4
spent on development
projects, the value of work
done is only RM 1 with the
remaining RM3 lost to
corruption, waste,
inefficiencies and leakages.
The actual loss may be higher
as the scandal of repairing
Chinese primary schools in
Muar showed that RM 30,000
was spent when the value of
work done was only RM
3,000/-.
The time has come for
Petronas’ profits and oil
revenues to be shared with
ordinary Malaysians. Only by
reducing the financial
burdens of rising inflation
faced by working families,
can the government be
responsible in economic
management and ensures good
governance that increases the
welfare and benefit of the
poor, not just the rich.
(05/01/2008)
* Lim Guan
Eng,
Secretary-General of DAP |