The bottom line

The bottom line

JUNE 8 — A friend said he couldn't understand Malaysians.

They voted for change in the last elections and the Barisan Nasional government, which suffered its worst performance, heeded the call by putting in various measures in the first 100 days including cutting subsidies that have led to higher fuel and chicken prices.

"Well, they are getting it now. They have to pay more and what is left is pocket change. That's change," he said with a smile.

Of course what didn't change was the way the subsidies cut was announced. There was mixed signals from various ministers of a two-step hike or a one-step hike and whether the fuel tanks of foreign-registered cars are allowed to fill up at border petrol pumps.

After all, we Malaysians have generously subsidisd our neighbours for years with cheap fuel and food. Why should we stop now? Or stop subsidising our Malaysian brethren from enjoying subsidies despite earning Singapore dollars?

What else didn't change? The public perception that the ruling Barisan Nasional through Petronas is hiding billions of ringgit that could be used to continue the subsidies, after all it is OUR national oil company and we are entitled to its money, which I gathered with amusement from fellow The Malaysian Insider columnist Zulkifli Sulong.

Petronas' usually taciturn chief executive officer Tan Sri Hassan Marican had to explain the revenues and expenses of the national oil company while Second Finance Minister Tan Sri Nor Mohamad Yakcop also gave an insight in an interview with The Edge over the weekend.

But I think the government should clearly explain that Malaysia produces and sells its higher grade Tapis "sweet crude oil" while importing the "sour crude oil" that is refined into petrol, diesel and such for domestic consumption. We don't use the oil that we produce but import refined oil for usage.

The government needs to explain the relationship between the crude oil profits and the subsidised prices to the consumers at the petrol pump. Otherwise, they will believe the propaganda of cheap pump prices at various countries mentioned by Opposition members. Let's straighten them out with the facts.

After all, people should still remember the riots in the Iranian capital Tehran in June 2007 when the government announced fuel rationing of 100 litres for private vehicles with a short notice of two hours.

Yes, Iran has huge energy reserves but lacks refining capacity. It imports 40 percent of its petrol and is running a large budget deficit because of fuel subsidies and a rampant inflation rate estimated at 20-30 percent.

The biggest challenge, in my opinion, is while we explain the need to change lifestyles is to first change our own mindsets and lifestyle. As the ruling coalition, Barisan Nasional must discard the subsidy mentality and work hard to become more competitive.

Malaysians must learn to accept that car ownership will now become a luxury as the cost of fueling the car far exceeds its monthly payments. Perhaps if we have to pay real world prices for fuel, shouldn't we also pay real prices for cars and other vehicles? Or should all the subsidy savings go to buying up all the toll concessions so that we have a "free ride" on all roads.

There is no such thing as a free lunch. All that is perceived to be free has someone paying for it, directly or indirectly. Case in point is the previous low fuel prices that came at the expense of projects for the good of all.

But the Finance Ministry has to crunch the numbers and see the feasibility of lowering taxes for vehicles or buying up the toll concessions. But I fear that only takes care of the motoring public. Should we pander to motorists only? Are they the only ones who vote?

Those voted into Parliament last March 8 can do their part too. I would like to propose that we help save electricity costs in the Parliament by raising the ambient temperature and relaxing the dress code of suit and tie or formal wear. We just want neatly dressed lawmakers there for work and not for appearance sake.

The government should hasten technology usage and reduce staffing levels. The country has an estimated workforce of 10.4 million people. But only 1.1 million of the workforce pay taxes that help pay the salaries of the 1.2 million civil servants. There is a clear need to downsize the civil service. Or let them tele-commute and the employees figure out if they need a better quality of life with airconditioning and such.

The VIPs could show empathy with the rakyat by reducing their long entourage of escort vehicles and motorcyclists when they move around for public duty.

The list is endless. Just as debate on subsidies.

The bottom line is we should now ask ourselves the question, taking from US President John F Kennedy's famous line in his 1961 inaugural address, "Ask not what your country can do for you – ask what you can do for your country."

Datuk Nur Jazlan Mohamed wants to raise the ambient temperature, and possibly the political temperature, in Parliament, through his weekly column in The Malaysian Insider.