All must be involved in overcoming economic crisis

All must be involved in overcoming economic crisis
13 June, 2008

By V. K. CHIN, The Star

IT is a fact that the Government alone cannot deal with the present economic crisis brought about by runaway crude oil prices.

The public must understand that the Government needs the support of the corporate sector, employers, employees, non-governmental organisations and individuals.

Otherwise, it is going to be a long and rough road for everyone to just rely on the Government to do the job. Unfortunately, many people are still in denial and still in shock over last week’s sharp petrol and diesel price hikes.

Prime Minister Datuk Seri Abdullah Ahmad Badawi has the unenviable task of reducing subsidies in view of soaring world crude prices. For this reason, he and his Cabinet colleagues had never spoken about retaining subsidies.

With the volatility in crude prices, it would be impossible to predict how high they would go. The price could go up suddenly, and the Government would have no choice but to reduce subsidies accordingly.

It is not that people do not realise Malaysia cannot buck the trend of providing subsidies for these two fuels since other governments are resorting to similar measures to balance their national accounts.

The people must lend their weight to what the Government did when introducing several cost-cutting measures aimed at its leaders, such as a 10% cut in ministers’ and deputy ministers’ entertainment allowance, to holiday locally or in the region, and a freeze on recruitment.

The entertainment allowance cut is more symbolic and, if necessary, the percentage should be increased. Even 50% should not be considered excessive since it can be reinstated later on.

When it comes to air travel, government leaders and senior officials should travel only Business class, which can mean quite a lot of money saved. Business class is just as comfortable on long journeys; First class is sheer extravagance, and more for prestige than anything else.

The freeze on recruitment is more meaningful, even on a temporary basis. There are already too many civil servants on the payroll, and there is really no urgency for more.

What the Government is trying to show is that people must practise thrift and not waste money unnecessarily. Spend wisely and try to stretch the ringgit.

But allowing civil servants to take up part-time work is inappropriate, even though the intention is good since it enables them to earn extra income.

However, the possibility of abuse is high and, when put into practice, more civil servants may take sick leave to spend more time on their second job or business.

Some are also likely to concentrate more on their second job or business and treat their government positions as part-time. There may even be conflicts of interest, especially if they should engage in outside business involving their departments.

The Government therefore should consider this measure very carefully, or the delivery service will suffer as a result.

Civil servants are not so poorly paid that they are in urgent need of additional income. Like those in the private sector, they should seek to live within their means.