ARTICLE: Loopholes for buying fuel with MyKad — Lim Sue Goan

Loopholes for buying fuel with MyKad — Lim Sue Goan

JAN 18 — This would be the busiest year for the Domestic Trade and Consumer Affairs Ministry. As the government is going to reduce subsidies on necessities, law enforcement officials would have to be diligent in their duties to prevent profiteers from fishing in troubled waters. Under the “1Malaysia” slogan, the government would have to take care of all Malaysians and for the very first time, it has listed turkey and pork as controlled items during Christmas and Chinese New Year.

However, there are many corrupt practices in the market, ordinary people are sometimes smarter than the officials. No matter how stringent the controls are, they still have ways to escape from being caught by law enforcement officials.

Take the implementation of buying fuel with MyKad, which is scheduled to be launched on 1 May, as an example, there are in fact many loopholes for the policy.

Under the new fuel subsidy structure, only Malaysian owners of vehicles with low engine capacity will enjoy full fuel subsidy, each person is limited to enjoy fuel subsidy for one vehicle and each person is allowed to pump limited amount of fuel every month. They have to face a lot of technical problems in order to implement such new policy.

Firstly, there are thousands of millions of different vehicles in the country. Would the government be able to match all the information of Malaysian citizens with the vehicles they own using computer system within three months? Moreover, some people have more than one vehicle registered under their names, how is the government going to ensure zero computer system error?

It is said that the government will also ask for assistants from banks, hoping to verify the information of vehicle owners through credit card records. The Road Transport Department (JPJ) will as well have to be psychologically prepared that many people may want to “change” the ownership of their vehicles to their relatives in order to enjoy fuel subsidy. Thus, it is not going to be a simple task.

In the first stage of implementation, there will be various errors and complaints for sure, including the computer system may be down; readers fail to read MyKad, no record in the computer system, some people are not allowed to enjoy fuel subsidy even thought they have not reach the limit amount yet, some small cars are not able to enjoy the subsidy while big vehicles can, or lorry drivers may complain that subsidised diesel is always sold out.

Secondly, how is the Domestic Trade and Consumer Affairs Ministry going to stop some Malaysians from lending their MyKads to foreigners? Foreigners may register their vehicles under borrowed Malaysian names to enjoy the subsidy. The readers in petrol stations recognise only cards but not the persons, the policy may become a profit-making opportunity for people living near country borders.

Thirdly, the policy in which vehicle owners are allowed to pump only a limited amount of fuel monthly may help to stop smuggling activities but fuel consumption is sometimes difficult to estimate. For example, we will have to consume more fuel during festive seasons as we have to return to our home towns. Also, sales persons and field staff have to go out very frequently. Such a policy will cause fierce opposition.

If a person does not purchase fuel up to the limited amount this year, could the remaining quota being carried forward to next month? How much is the reasonable fuel consumption amount? A total of 50 litres would be more than enough for those working near their houses but for sales persons, it may not enough even for two days. Also, those who cannot use up the quota may resell the remaining amount.

The government may think that the new mechanism can save a significant amount of subsidies but it does not take into account that if it is not effectively and smoothly implemented, it my affect the operation of industry and commerce, as well as cause an inflation.

The most crucial question is, how is the government going to use the billions of ringgit saved from the reduce of subsidies? The people will never wish to see their hard-earned money to be simply squandered and wasted. — mysinchew.com

END OF ARTICLE:

Source: 

1) 

http://www.mysinchew.com/node/34120

Thay's all folks, thanks for having the time and patience to read this SECOND WELL WRITTEN ARTICLE.

INTERVIEW: Still in the dark over system

The Star, Sunday January 17, 2010

Still in the dark over system

By SHAHANAAZ HABIB

shaz@thestar.com.my

The Government’s plan to impose a two-tier pricing mechanism for petrol by May 1 has given rise to many questions but answers are hard to come by. Just how will the mechanics be worked out?

THE Government wants to cut down on subsidies it pays on petrol by implementing a two-tier pricing system by May 1. Domestic Trade and Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob says the principle has been agreed upon but details are still being worked out. He has asked the public to give him their views via his Facebook.

The move to reduce subsidies, including for sugar and other consumer products, is a very sensitive and difficult process, he admits.

OTOREVIEW'S NOTE: Here's an Interview between, The Star Reporter, Shahanaaz Habib and Domestic Trade and Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.  ENJOY:

Q> People want to be informed early about the new fuel pricing mechanism so that they can be prepared.
A> I agree but we have not fully settled on the exact mechanism. It’s still under discussion, that’s why we are still unable to announce details at this moment.
What I was able to announce is the principle of the subsidy. Wherever you go in the world, subsidies are targeted at needy groups. In the case of petrol for our country, the poor or the middle income group.

But now everyone is getting the petrol subsidy, including foreigners, which means the Government is subsidising citizens, non-citizens and the well-to-do. This is wrong. The principle of the new mechanism is that the subsidies will be given to only the targeted group.

Filling up: Details on the two-tier fuel pricing system are still being worked out.

Q> Since the Government is still discussing the mechanism, maybe it won’t be implemented in May?
A>That May 1 date is still on target but it will only be for the peninsula. For Sabah and Sarawak, the implementation will be later. The people there use four-wheel drive vehicles to get around and most are about 3,000cc. Even the poor are forced to use that because of the terrain. We will eventually have a mechanism for them.

Q> How can people give their feedback constructively if they are not given some details of the proposal?
A>But they are already doing that now. Even though no one is certain about what is going to happen on May 1, the debate and discussion have already started. Even the principle of the subsidy is being questioned. Even the rich are thinking they should be entitled to the subsidy.
We are listening to the opinions and suggestions.

Q>Is the Government looking at engine capacity or the make of the car to determine who gets the subsidy? What engine capacity are you looking at?
A>With cars, the best is to look at engine capacity. It’s wrong to go by the brand because that would be perceived as discriminating against a make. You can’t say whoever owns a BMW is not entitled to subsidised petrol; BMW would be mad at us. That’s why engine capacity is the best consideration. As for the engine capacity, we will announce later.

Q> How about expensive cars like the Mini Cooper, which has a small engine but cost over RM200,000?
A>There are also some kampung folk who use very old Mercedes Benz, which is very cheap – costing about RM10,000 – but the engine capacity is big. Whatever we do, we can’t cover 100%. There are bound to be some who won’t be covered. This is true of whatever policy we make; it can’t be 100% perfect. - Has the CHEEK to say  this comment, WHAT A DOOFUS! ED.  There will definitely be some who are not satisfied or who terlepas (escape).

Q> Will there be two different pumps at petrol stations?
A>We are still working out the mechanics but definitely not two pumps. We are looking at pumps having two prices or perhaps just having the market price on it but those entitled to the subsidised price get to pay less and get receipts for it.

Q> Who decides on the engine capacity at the petrol station?
A>We are considering putting a chip into our MyKad to register the car that’s entitled to the subsidised petrol. Each person is eligible for subsidised petrol for only one car. It’s not fair if you have 10 (small engine capacity) cars and you get subsidies for all 10. If the car is registered to different people, for example the wife, son or daughter, then each is eligible to the subsidy; one person per car. Children have to be 18 or above because, to own a car, you must be at least 18.

Q> So we won’t be handing our MyKad to some foreign petrol attendant to check?
A>I don’t think that will be the case because these days we are IT savvy. It’ll probably be swiping, like you do with the credit card. It will be a convenient system.  - What can I say!?? ED


Q> People who own big cars grumble that they already pay high duties for the imported cars. They are also paying high road taxes, so why shouldn’t they enjoy subsidised petrol because they are taxpayers too?
A>The principle of the subsidy is that those entitled are the poor and middle income group. But we are listening to all views and there have been so many because everybody has been talking based on presumption.

Q> But people argue that it’s better to disclose some details of what the Government is proposing so that they can give their views rather than speculate.
A>I can’t give details because we are still discussing (them). In due time, the Government will announce the engine capacity and whether there is a cap on how many litres per person per month. If there is no cap per car, people will abuse it. They will use their Mykad to buy as much petrol as possible, transfer it into a drum and then sell it to those who don’t qualify for subsidies. So the question of how many litres will be announced later. MAN!  This guy speaks without WISDOM! - Ed.

Q> How about those who travel outstation for work or those in big cities who travel long distances daily because they can’t afford to buy or rent homes near their offices?
A>We are looking at all angles. Someone who lives in a small town and goes to work nearby will benefit. We haven’t fixed a cap yet but if there is no limit, it will definitely be abused. Those near the Thai border will sell it over the border and, in other places, people will sell it to those who are not entitled. So there should definitely be a cap.

Q> Is the Government also looking at reducing the subsidy on diesel?
A>Not right now. The real market price should be RM2.09 per litre for diesel but fishermen pay only RM1.20, public transport such as school buses, public buses, lorries and prime movers pay RM1.43, normal cars RM1.70 and airport taxis RM1.58. - This is the ONLY PART OF THIS INTERVIEW HE SAID WHICH was NICE TO READ.  The rest?  Read on...  YOU'LL BE PISSED with what he SAYS!  You've been warned - ED


The multiplier effect of diesel is different from petrol because petrol is not used for public transport and to transport goods. If we increase the price of diesel, bus fares will go up and the price of goods will increase immediately because transportation costs would increase. School bus operators, too, would want to hike up fares. There are a lot more considerations with regard to diesel than petrol.

Q> What products is Malaysia still subsidising? Are we moving towards a no-subsidy regime?
A>Sugar, cooking oil, flour, ST15 rice, petrol, diesel, LPG gas, and NGV gas for taxis. The fuel subsidies make up the highest amount. It was RM5.6bil last year (in 2008 when world oil price was higher, the subsidy was RM18.8bil).


We are not moving towards a no-subsidy regime yet. I don’t foresee us doing away with the subsidy for basic items like rice and petrol. What we are trying to do now is to focus on the target group. There has been too much leakage because people who are not eligible are getting subsidies.

Q> It has been reported that Malaysia by 2011 will be a net importer of oil, so shouldn’t we stop giving subsidy for oil?
A>The people are not ready. When I raised the price of sugar by just 20 sen, people got angry. We must educate our people. The problem with us is that when we get something, there is no way the Government can take it back. Sugar was never a subsidised product. The Government only started subsidising sugar in 2009. Before that, because the world sugar prices were low – at US$14.50 per kg – we had no subsidy at all. But last year, the price shot up. The Government wanted to cushion the effect and started subsidising sugar. Taking it back now is very difficult because people think it is their right. - I AM SPEECHLESS with What he said... He clearly speaks without thinking...


Q> Isn’t there ample justification to withdraw the subsidy on sugar because less consumption is better?
A>Many people, including consumer and health groups, feel there is no reason for the Government to subsidise sugar because it is bad for health. It can be likened to subsidising cigarettes. The sugar subsidy only makes people use more sugar every day and this will increase the number of chronic illnesses in the country.

This is what people should understand. We have to educate people and make them aware. If we do not educate them, it would be difficult because we have been enjoying subsidies for too long. Last year, the subsidy for sugar was RM720mil. This year, despite the 20 sen increase, the Government will have to fork out an even higher subsidy of about RM1.008bil.

Q> Biscuit and soft drinks manufacturers buy sugar at subsidised prices too. So can we have a two-tier system where industries pay the real market price?
A>We should actually do this. The problem is if we do, there will be a shortage of sugar because people will start hoarding sugar. Retailers, too, will manipulate the supply and sell to industries as they pay higher prices. This will cause problems for consumers. As far as retailers are concerned, why should they sell to consumers for RM1.65 when they can sell at higher prices to factories?

For example, if the real market price is RM2.45 and the factory offers retailers RM2.20, the factory saves cost and the retailer makes more money than selling it for RM1.65 to consumers. That’s our worry about putting two prices for sugar in place. This is what happened with subsidised diesel being sold on the black market.

Q> What is the hardest subsidy for the Government to withdraw?
A>Everything! The Government will spend RM104mil this year to subsidise flour. Last year, it was RM89mil. If we cut this, the Indians and roti canai lovers will make noise. So we are maintaining the price at RM1.35 because it is a staple food for Indians. Rice, too, is staple food for the Malays, Chinese and also Indians. It is also very hard to raise diesel price because the price of other goods will go up.


As for petrol, we just have to raise the price by 5 sen and people will get angry.

 With sugar, too, people made noise when we hiked the price up by 20 sen even though sugar consumption is known to cause harm. However, they are not really worried about sugar consumption at home because they consume only 1kg or 2kg a month and a 20 sen hike per kg is not a burden at all. What they are worried about is the multiplier effect – the effect it would have on food prices outside.

Q> Has the objection against the sugar hike been very serious?
A>Not so much because consumer associations have come out in support of the Government. We argue that for health reasons people should consume less, so why buy sweet things outside? But people still fear a hike in prices of food products. That’s why we will continue our campaign of reducing sugar in food and drinks.

END OF INTERVIEW.  

Man, I have only 2 WORDS after reading this INTERVIEW.  I'm very disappointed with what he said.  Clearly, he is INSENSITIVE with what he said, saying the RAKYAT Spoiled, RAKYAT will make noise, this and that...

He even have the CHEEK to quote this:  "Whatever we do, we can’t cover 100%. There are bound to be some who won’t be covered. This is true of whatever policy we make; it can’t be 100% perfect. There will definitely be some who are not satisfied or who terlepas (escape).".    WHO DOES HE THINK HE IS?  Reading the above makes me PI$SED OFF!!!

MY 2 WORDS: "SACK HIM!!!".   This will END ALL THIS HAVOC he's trying to CREATE BY MAY 1.

Why?
Cause he's Insensitive to the RAKYAT NEEDS. As I highlighted the above article in "BOLD AND ITALIC".

The Star: Fuel price by car size + my opinion after the article

The Star, Friday January 8, 2010

Fuel price by car size

By ZALINAH NOORDIN

PETALING JAYA: The bigger your car, the more you will have to pay for petrol from May 1.
This is because the Government is going to change the way fuel is subsidised.

It is planning for a fuel pricing mechanism that will ensure only targeted groups, particularly those from the lower-income, will receive fuel subsidy.

Also, foreigners who drive into the country to fill up their tanks will not be eligible for subsidy and will have to pay more for fuel.

“The bigger the engine, the higher petrol will cost,” Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said yesterday.

The move was based on the assumption that those in the lower income group would normally drive a car with a lower engine capacity and thus be eligible for the subsidy, he said.

“For RON95 petrol, the subsidy is 30 sen per litre. The current price of RON95 petrol is RM1.80 compared with the actual price of RM2.10.
 
“Malaysians who are not eligible are those who drive a higher engine capacity car or non-Malaysians. They will have to pay RM2.10 or more for RON95,” he told a press conference after launching the new corporate identity of the F&N soft drinks division here yesterday.

Besides introducing the new structure, the ministry also plans to make the use of MyKad compulsory when buying petrol. “There are some Thai nationals who drive into Malaysia to fill up their tank because petrol is such an expensive commodity in their country,” he said.

In Muar. Deputy Prime Minister Tan Sri Muhyiddin Yassin said the Government was in the final stages of drafting a policy on the fuel subsidy which will be a “win-win situation” for both the Government and the people. He said that the new policy would identify people who were eligible for subsidy.

Umno Youth chief Khairy Jamaluddin had previously broached the subject about giving petrol subsidy to the right people. He said the subsidy must reach only the people who needed it most and giving subsidy across the board was a misallocation of funds.

On the subsidies for flour, sugar and gas, Ismail said they would be retained.  “Although the price for sugar has been increased by 20 sen, the Government is still providing subsidy for the commodity,” he said.
Ismail food outlet operators should not take advantage of the increase in sugar price to mark up the price of their products. “Food outlet operators should not regard this as an opportunity to raise prices,” he said.


END OF SOURCE: http://www.thestar.com.my/news/story.asp?file=/2010/1/8/nation/5431667&sec=nation

MY (Jeff Lim's) OPINION:


What a STUPID IDEA!  Why I said so?  Here's 2 scenario. 

Senario 1: BIG CC car owners DOESN'T mean RICH okay!!!  My father's friend who's in his 70s owns a 1989 BMW 740i and he's NOT RICH.  His 740i now only worth RM10,000!!!  He bought off this car 10 years ago upon retirement for mere RM80,000 only.  Ie. the price of a new Toyota Vios.


Scenario 2: Those Mercedes C200 Kompressor, E200 Kompressor and LATEST E200CGI, E250CGI owners will BENEFIT THE MOST as these cars were 1796cc only and were price up to RM458,000 for E250CGI Coupe.   I forsee that the above mentioned cars' sales will SHOT UP as SMART RICH people will take advantage of this LOOPHOLE.  They will LAUGH ALL THE WAY TO THE BANK!  Another Example: VW cars with 1.4TSI engine (eg. Jetta).  They costs roughly RM160,000 yet they enjoyed the SUBSIDY being a 1400cc car.

Lastly,  a NEW MAZDA RX8 which costs RM228,000 buyer pays only 1.3CC Roadtax! 


THe Government people CLEARLY OVERLOOKED the above scenario folks who'll TAKE ADVANTAGE of the SUBSIDY!!!



Jeff Lim signing off...

BJD 8282, Red S2000 You are the champ!!!

This is NOT MY BLOG ENTRY Definitely. Rather, It was taken from this blog: Apparently written by "Yoon Kit" aka. drifter... Source 1: http://yoonkit.blogspot.com/2008/10/mental...ed-parkers.html
wyat forum.

Source 2:http://yoonkit.blogspot.com/2008/10/mental...ed-parkers.html

I know this is a used car review blog, but these kind of driver is TOO MUCH. "Orang Kurang Upaya" (OKU) parking space also park. Somemore, parked at 2 parking lot. He/she knows it's a designated bay for OKU. Here goes for this WONDERFULLY WRITTEN Blog entry:

"While in McDonalds Shah Alam, this young scrawny punk drove his red sports car and parked in the middle of the two handicapped parking bays. So not only did he park in a space allocated for the Physically Challenged, he also took up two spaces for his precious car. I managed to snap a picture of him as he walked by:



user posted image

Me: Please don't park in the handicapped bay
Doofus: Huh?
Me: Are you physically challenged?
Doofus: No?
Me: Then why did you park there?
Doofus: Cannot ah?
Me: No!
Doofus: Who are you?
Me: Just a concerned citizen.
Doofus: So? ... Do what you have to do lah

Fine! So I took this picture:

user posted image
http://yoonkit.blogspot.com/2008/10/mental...ed-parkers.html