Supp Youth Press Statement by Publicity Secretary on 2/10/2014

suppadmin | October 3, 2014

Regarding the government’s reduction of RM0.20 on petrol/diesel subsidy effective from 2/10/2014 at 12.01am thus making the new price for RON95 at RM2.30 & for diesel at RM2.20, SUPP Youth Publicity Secretary Milton Foo has posed the following questions to the Ministry:

1. It was stated in an official statement from the Ministry of Domestic Trade and Consumer Affairs that despite the hike of 20 cents on Ron95 & diesel, the government will still have to subsidize an enormous fund of RM21 billion on the petrol for the year 2014.

Notwithstanding that and although Malaysia is still considered as one of the countries having the cheapest rate in petrol in Asia Pacific region such as China, Japan, Taiwan, Thailand, Singapore, Indonesia & Philippine (except Brunei which has only 390,000 population), the government is obligated to tell the people how the sum of RM21 billion is calculated or derived at?

Has the calculation taken into account the reduction of 20 cents on petrol/diesel subsidy which was announced officially yesterday?

Government subsidies in whatsoever form are indeed generated from the people revenue and national resources and they are thus the people’s money whereas the government owes a duty of care to the people in terms of the proper management of the subsidy.

2. The Ministry had in its official statement emphasized that the monies saved are for better and more productive fields or expenditure such as enhancement of education and training, medical healthcare, public transport and national security etc, which may also help to reduce smuggling activities of the subsidized petrol or diesel for a fortune hence usurping the people’s interests and benefits.

SUPP Youth has no objection to the rationalization of the petrol subsidy undertaken by the government.

However, SUPP Youth has called for and demanded transparency by the government in the reduction of petrol subsidy.

What is the total amount that could be saved after the reduction of 20 cents per liter? What is the exact amount that will be expended on by the government and where does the monies go to thus truly benefiting the people at large such as building new schools, new hospitals and new low cost houses etc.

Sarawak in particular, being the major contributor in oil and gas resources for Malaysia, where its education, medical healthcare, infrastructure and road, public transport system etc are far behind most of the States in the West Malaysia, should be placed in priority with such reduction of subsidy. It is therefore imperative for the government to make it clear to the people as to the usage of such “savings” in more specific manner by devising a mechanism to ensure that the sum of monies is properly expended on and utilized for the best interest and welfare of the people at large, especially the Sarawakian.

A more transparent manner over the use of such saving by the government is therefore warranted for, failing which unfairness or prejudices may be caused at the detriment of the people.

In light of the difficulties in life that the people especially the middle class or middle lower class may face, SUPP Youth calls for not only a more considerate but also accountable government. Given the high inflation rate and costly standard of living which may cause further hardship to the people, the rationalization of subsidy in any form or at any instance must be made fully transparent and comprehensive to the people to avoid misappropriation or misuse of the funds saved.