Tuesday, September 03, 2013

Malaysia vs Tongkat aka Subsidy

The RON rush in Puchong last night
The 20 sen/litre increase in RON95 petrol and diesel price h e r e created long queues at petrols stations last night. Some waited as long as 45 minutes (imagine the fuel they were burning) to cling on to the subsidy. 
There is good news and there is better news. The good news is that the savings from the 20-sen increase will be enough for Najib Razak to double the BR1M money menat for the lower income, something the PM's likely to announce in the Budget later this year. The better news is that Malaysia is now committed to a subsidy rationalization program which will ensure subsidies don't go to people who don't actually need or want a "tongkat". 
The fiscal committee meeting chaired by Najib, which decided on the gas price increase yesterday morning, will meet again in February 2014. I think the committee should meet more often. say every three months. 
To find out how much the 20-sen hike will impact you (if you are the average Malaysian), read HishamH's sassy analysis h e r e.

29 comments:

trifling-jester said...

rocky, when u say "subsidy rationalization program will ensure subsidies don't go to people who don't actually need or want a "tongkat".", do you mean rich malays wont be getting hand outs anymore? no more bumi price for houses? wow progressive!

Anonymous said...

The price for tongkats just went up !!

Anonymous said...

Rocky,

It not about subsidy, the rakyat is concern about the wasted fund by Najib goverment. How much being paid to consultant, cost of renovating PM resident. fund provide to venakular schook and so many more. In this era rakyat aint dump and stupid. Are you aware that the low and middle class income is not competative, they are getting poorer. We dont want BRIM we want where all malaysian can benefits. Why not cpme up with affordable subsidiase insurance scheme for the poor and midle income that includes medical.

charleskiwi said...

Just you wait for the rest of the new taxes that will be introduced before you comment on this further. What about the much talked about GST that is to be introduced ? Everybody and everything in Malaysia will be taxed and unlike the fuel tax that according to the morons it will not affect the poor in the Kampong because they do not have cars to worry about the fuel increase.
Therefore am I right to assume that all those in the city who voted against the morons are paying for their votes for the opposition and not so for those in the Kampong for having voted for the morons ?
Whatever, just you wait for the new taxes that will be introduced in the coming months. Most of all just wait and see what will happen when the black gold has run out just like Indonesia ?

tpac said...

saudara
kalau saudara buat pemerhatian teliti di stesen-stesen petrol, saudara akan dapati, kebanyakan kereta-kereta mewah masih mengisi ron 95. Masih ada yang tidak layak menikmati brim, tapi dapat.
jadi rationalization of whatever itu ialah lebih kepada non-rationalization.

Anonymous said...

Why "subsidy rationalization" only affect those using RON95 only and those using RON97 are not touched ?

If the price of RON97 is also increased, wouldn't the subsidy would be much lesser ? Thus all Rakyat will be affected.

Is pressing the poor is the Govt new vision ?

Bru said...

Anon 136pm,

RON97 is not subdized.

GRA said...

Yes, lets remove the subsidies for the rakyat as the savings will be pocketed by the UMNO putras ON TOP OF WHAT THEY HAVE STOLEN FORM US

Yes, the poor UMNO putras they really need subsidies to maintain their 1-4 official wives the many unofficial ones.

Yes, they need subsidies so that their kids can get the best education at private schools here and abroad.
The poor sods also need it badly as they have to maintain their mansions here and abroad.

Yes my fellow Rakyat we have to forgo our subsidies to make sure that the UMNO PUTRAS get to keep theirs.

HIDUP UMNO.....MATI RAKYAT

Anonymous said...

put it this way..if they cant control the chain reaction cause by the price increment, tak guna ckp less gomen burden. Its passing the burden to us.

Timing pun kinda bad, after u get people rile up behind u.. u taruh kow.. wtf man..

20sen its kinda high..its like doing a "Pak Lah"

so..Pemandu or what ever u called your team.. You have failed. say goodbye to your boss..
PAU is coming.. hope umno members got balls to unseat him.

Anonymous said...

The government has been on spending spree mode for the past several years and it is a matter of time for it to happen. They have exhausted their resources and it is time to refill the tanks. If you were to do it, please do it prudently and in stages so we could be prepare for it.
We understand somehow the subsidy have to go away; little by little.

Anonymous said...

Rocky.... the brim has no impact on malaysia economy. Only people with incomr less than rm3k will benefit (if not mistaken)

But with petrol price increase.... cost of transportation will increase.... so basically everything increase.

To stop brim polict which bring no benefit...we should change PM.... tan sri cab perform better

Anonymous said...

Vote BN la..Barang Naik..bagus..

Apa cina mau??

Mau minyak turun lo...

Rocky n co must be very busy thinking of excuses n spinning for their paymasters..


LMAOROTF

Bru said...

Anon 249pm,

People with income less than RM3k a month make up 40 per cent of the labour force. That, by any measure, is significant, mate.

And if you don't want the BR1M because you do not qualify, that reflects you. Me, I wish the Government would give more BR1M-like handouts but minus the fanfare, the photo sessions, etc.

In Singapore, professionals get ex-gratia paid by the Government, desposited straight into their bank accounts, almost for the heck of it. Call it the PAP's way of trying to stay in power and remain popular, but it helps working population with their year-end budget at least.

safiai saad said...

Sdr Rocky,I was told that the current revenue of the country was rather alarming.Our budget will continue to be deficit.No new source of income is available to the goverment.Petronas the chief supplier of our oil also faced AIDS=Acquired Income Deficiency Syndrome,since new source of oil is rather scarse.Our export and current account was dismal.
The easiest way to increase the income is by raising petroleum price.Most people who use RON 95,is middle income group.They are not eligible for BRIM which government claimed to be main beneficiaries of the price hike.
The question is why the middle class need to finance the recipient of BRIM who earned less than RM3000 per month.While the rich people use RON 97 and there is no hike in the price.Taking the money from left pocket and give to right pocket.We have been informed that rating agency is looking to Malaysia as a very vulnerable country.Our's can trigger another Greek crisis.Well I am willing to support the government move but she must cut unnecessary expenditure. Balance the budget please.Reduce wastage,even cut off questionable procurement by ministries.Look at our house debt,the usage of credit card to support life style.

Bru said...

GRA,

That kind of blind hatred may just get you a heart attack. Touch wood but if it does, dial +60326178200 for IJN.

Anonymous said...

Salam datuk.

It just occurred to me that if Dr M had read this sterling advice about reduction of tongkat (minta maaf for the suggestive phrase : ) for people who don't actually need them, then Tajudin Ramli and other cronies might have contented themselves with just skimming millions, rather than billions, off the taxpayer for free.

Current economic turmoil is like cancer. Sometimes it's unavoidably caused by external factors, sometimes the patient's own lack of prudence causes it.

This patient has abused the national coffers for a long, long, long time.

Let's hope we don't reach stage 4.

Ah Jib Gor said...

Proton's "subsidy" tarak bisik-bisik bising-bising pun...
Apa Lagi Mahathir Mahu!???

borhan said...

Pi mai pi mai tang tu jugak.Batalkan subsidi petrol untuk membiayai subsidi BR1M.tahniah datuk untuk lawak bodoh minggu ini

Anonymous said...

GRA,

You can dig your own hell hole and jump into it!!

Anonymous said...

same justification during the slumberjack era when they raised the fuel price. Tengoklah berapa lama lagi Najib akan jadi PM, pengusaha2 lori & pengangkutan awam (bas) dah mula hendak mendesak kerajaan untuk menaikkan tambang dsb. tick tock tick tock

maae said...

he...he... minyak naik sedikit semua meracau, menggila ! Kebanyakkan gaji-gaji professional sekarang beribu-ribu, belas ribu, puluh ribu malah ratus ribu.... malah dapur-dapur rumah cantik dan canggih. Tak pernah masak. Makan di luar dengan belanja bil yang tinggi. Almost hari-hari...

Sebahagian bekerja sendiri, kais pagi makan pagi lebih mulia hidup mereka dan redho dengan rezeki yang di beri. Malah orang-orang kampung( yang di hina j-star dan saudagar belatuk lima bintang) realiti nya pasukan hadapan PENYELAMAT anda semua.. hidup terarah ke hari ini.

Harapkan mereka di bandar ? Majlis makan untuk semua, depan-depan bersikap biadab tidak hirau sekeliling, membungkus makanan bawa balik ( cina kata tapau) tamak semacam.... begitu lah sikap hipokrit dan cauvinis.

Bersyukur dan berterimakasih kerana kita semua tiada menghadapi kesengsaraan ! Semua makan sedap-sedap, tidur lena, rumah selesa anak-anak bahagia..... masuk sekolah cina...

Anonymous said...

Rocky, besides removing the fuel subsidies, the government should also consider reducing the RON of our fuel to be on par with other countries. In Australia, for example, RON95 is considered premium petrol, not regular. Their regular petrol RON is at 91 or 92. In other countries, their RON is even lower. Reducing the RON will not only save the government further but also perhaps reduce the acceleration power of motor vehicles here which could help reduce accidents.

Anonymous said...

Oghang Tanjung garu kepala...harga minyak naik, harga air naik, harga hartanah naik.. Jenuh hangpa.

UBAH lagi

Anonymous said...

Rocky i hopre you are not stupid and be blind by THE HAND THAT FEED YOU.
Say a low income earner earn less then 3K a month and only manage to send 100rm to 200 rm to kampung to support their old parents , with the increase automatically he will lose the many that he suppose to send back kampung so you expect the parents live with BRIM for whole year.
You are rich so dont feel a pinch , 40% of this people will eventually effected , you think Malay and Chinese trader wont increase the price and services ?
So Rocky the more you age the more you become moron and stupid .. Sorry to say .

Anonymous said...

sorry rock..
if they wanna take subsidy away..then do give something else back..

economy is for the rich, houses cost a bomb, crappy cars, then..u put toll booths every corner u can..wtf

so u see.. as ive said earlier.. the chain reaction will start to heat up..

br1m,tr1m or whateva it is..its not working out..

So..guys sorry..i voted for the BN guy..not bcos i like him.. its bcos the other candidate at my DUN is a complete asshole..

-camshial-

Anonymous said...

Hahaha....Rocky the economist wannabe trying to justify the petrol price hike. No need to spin lah, Latuk. Your boss said it was done for fiscal prudence, but in the same breath, he said he will increase the BR1M, so whatever you save on the petrol subsidies will be spent on BR1M. Fitch immediately picked up on this, and said that it won't make any difference.

Lu tau macam mana kira ke ? Satu tolak satu pon kosong.

All I know is that even the consumer minister talks cock when he said the petrol price hike will only have an increase impact of 0.1 pct of other goods. He, like you, never studied arithmetic in school.

Zheng Ho Abdullah

Anonymous said...

Rocky,

Ron97 = RM2.70 (no subsidy)
Ron 95 = RM1.90 (subsidy RM0.83) - old
= RM2.10 (subsidy RM0.63) - new

So Ron 95 without subsidy would be RM2.73 which is more expensive than the premium Ron 97?

Where's the logic?

Bru said...


Anon 8.24pm,

This article might interest you: RON97 to cost 15sen more ..
http://www.thestar.com.my/News/Nation/2013/09/04/ron-97-price-hike.aspx

Anonymous said...

Salam....
pd saya tersangat elok lah kalo subcd minyak dihapuskan sahaja...asyik2 diulang2 di ungkit2 pasai subcd minyak nih...tak nak bagi jgn bagi...
gaji saya bkn riban riban rutusan riban ribun tp sgt menjengkelkan dok dgr pasai ungkit ungkitan subcd nih...mansuhkan pemandu kew dreba kew
tu pown membazir duit gak kan kan kan.....minta tolong lew blogger2 pro bn jumpa najib dan hilait kan ketidakpusanhati marhein sumer....10q para blogers