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

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Source: 

1) 

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

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ARTICLE: An approaching nightmare: Leisure days have LONG GONE...

An approaching nightmare

BY — Lim Sue Goan,

JAN 15 — The Malaysian fuel prices in 1997 was cheaper than mineral water. The price for mineral water was RM1.50 per litre while the price for fuel was RM1.10 per litre at that time.

The country was almost as rich as Arab countries. Such a scenario was not far away but a few months later, we will have to use MyKad in order to enjoy subsidised fuel. Leisure days have long gone.

Malaysians no longer enjoy cheap fuel and sugar. It tells us that our national treasury is short of money. Factors that caused the shortage of money have been mentioned for many times.

They include mismanagement, overspending, corruption, declining petroleum revenues and economic recession.

In order to increase revenue and reduce deficit, the government has to reduce subsidies (the government will reduce RM4 billion of subsidies this year) and impose more taxes (service tax for credit cards, tax on disposal of real property, as well as the Goods and Services Tax).

Therefore, the public must be psychologically prepared to face the bitterness of price hikes.

In order to lead the country out of the current economic predicament, the government has introduced a new economic model to turn the country into a high-income economy.

Firstly, the people are still not clear about the structure of the new economic model. We only know that it is going to be a knowledge-based economy that requires the creativity of the people to develop the areas of services and technology.

In order to turn an economy relying on foreign workers into a knowledge-based economy, there must be a solid foundation and conditions, such as high value-added areas, experts and research bases. And it is impossible to be achieved overnight.

Secondly, Malaysians are lack of high standard skills, effectiveness and competitiveness. How are employees going to increase the staff’s salary? The level of income is measured based on the average.

It will be meaningless if only a small number of people are able to gain high income while the majority earn less.

It is worrying that before the increase of the average income of Malaysians, we must first bear the pain of “high costs”, including the inflation brought by subsidy reduction, as well as the possible increase of water and electricity tariffs and tolls.

In fact, Malaysians earn very low incomes. For example, the monthly basic salary for security guards is between RM350 to RM400, while factory workers earn RM480 and estate workers earn RM600 per month.

These low-income earners will starve to death in urban areas and only this year, the government announces the minimum basic salary system for security guards, private clinic assistants, estate workers and those working in the catering and hotel industry. How are we going to achieve the dream of turning the country into a high-income economy?

It is reported that more and more wage earners in Singapore enjoy luxurious life in the Iskandar special economic zone during weekends. For them, luxury houses in the economic zone is cheaper compared to a three-room apartment in Singapore and the monthly house loan is even lower than a car loan in Singapore.

Even a semi-detached or a detached house is relatively cheap compared to housing prices in foreign countries or if it is calculated with foreign exchange rates. However, wage earners in Malaysia cannot even afford a RM300,000 house, not to mention a luxurious one.

Malaysians have become “second-class people” in this piece of land because of low income.

Many people are likely to become “poor” if we have to face inflation and at the same time, pay various taxes while our incomes remain unchanged. It is an approaching nightmare for Malaysians. — mysinchew.com

END OF ARTICLE:

SOURCE:

1) http://www.mysinchew.com/node/34017