Friday, October 03, 2014

(Easily) The best analysis on the latest subsidy cut

Petrol, diesel prices up  - pix and story by The Malaysian Reserve

With Subsidy Cut, blogger HishamH has penned what I think is the best defence of the 20 sen increase in RON95 and diesel prices. The latest increase, he reminds us, has put Malaysia on the verge of abolishing the fossil fuel subsidies entirely. The quantum is reasonable and the timing couldn't have been better, he argues:
If support for the disadvantaged is the goal, subsidies for petrol and diesel are an incredibly inefficient and wasteful way to go about it. Most of the benefits of energy subsidies goes to higher income households, not the lower income group ... On average, the top 20% gain six times more from energy subsidies than the bottom 20%, and that petrol subsidies are the most regressive (i.e. the benefit climbs higher the higher your income level). Cash transfers are a far more efficient and effective way of supporting the poor.
HishamH makes mincemeat of DAP economic expert Chong Zhemin's attempt in No Reason ... to compare Malaysia's increase in fuel prices with a reduction in India and the UK. Basically, he's saying that Zhemin is trying to chong the readers lah.

For years now bloggers like HishamH, SatD, Jebat Must Die, A Voice, Big Dog and even Bujai, to name a few, have been helping the government explain its economic policies and defend the execution of these policies and they are still doing it despite the fact (yes, it is a FACT) that the government spends hundreds of millions of ringgit on clueless consultants, PR agencies and e-con advisors. I wish the government would see that: saving a few million bucks so that you can splash it stupid is not on. One day these bloggers will grow tired of you. Like Annie says, we ain't superheroes, man! 

15 comments:

Anonymous said...

Go tell that to Pak Yan in Baling lah.

He'll understand that
1. Harga minyak naik
2. Penulis nak kenakan cukai GST 6% ke atas harga minyak yang telah naik

Anonymous said...

Hey Rocky, how about blogger PARPUKARI? He has been defending the government too….. by MAKI HAMUN. You should give credit to him or her too.

Anonymous said...

If oil prices go up, patrol prices also go up. If oil prices go down, patrol prices will keep on going up. Haiya, ini macam mati wo, lena liwat depan belakang.

Anonymous said...

Gomen really don't know everything ... ever heard of 'strategic planning'? You know, I know & every Tan, Din & Ari knows gomen & oppo (if they r gomen too) will reduce the subsidy, so make a planned schedule when & how much it will happen & make known lar to everybody ahead of time. So rakyat prepared.
Ni tidak ... naik mengejut, macamana rakyat tak melenting! Lagi ... tak boleh tunggu lepas hari raya Haji ke? Bod*h lama tak habis transformasi kepada bod*h baru!

Anonymous said...

Kesimpulan nya You All lah yang Habis Bodoh dan Bangang Sekali...

Bukan Najib dan Rosmah..Mereka Enjoyyy...

trifling-jester said...

what rocky is really trying to say to the government is we the online-machai-posse (aka bloggers) can only spin so much of shit for you for so long ON THE CURRENT ARRANGEMENT, eventually you'll need to up to game to something comparable to these outside consultants..

Anonymous said...

Kat Mlysia ni, kena ada 2 set penerangan berbeza;satu, kpd laymen biasa. Satu lagi dgn golongan yg perasan bagus.
Tu tk termasuk golongan tengah yg kkadang blur, kdg2 cerah.
Politician kena pandai adjust. Tapi kalau mcm penerangan yg 'Some pak menteri yg macam bagus' beri, mmg tak blh belah, dua2 golongan tak leh terima.
Tapi argument Pak Jib semalam, logik harap nya to the normal laymen. Hahh, bagi golongan yg perasan baguih yg ramai dlm pkr, bagi dia penerangan yg real economist bagi, baru tak faham sepatah.

Anonymous said...


Hi,
The bloggers you mentioned in your posts are not explaining the issue but SPINNING the issue. For a payment of course!

Anonymous said...

According to you remove completely then and see how clever you can try to explain.

Anonymous said...

Latuk: your boss is finished. After all the daylight robberies committed by UMNO, there is no more money for subsidies......

Godfather

Anonymous said...

Why pick on the relatively poor people who use RON95. No one has asked the question. Why is RON 97 used by high performance cars owned by high performance players subsidised.

MAJID KADIR said...

Dear Bro Rocky Bru...

Sampai lama mana kita boleh bertahan dengan UMNO-BN? You have to gauge the sentiment on the ground. It is very very negative now... Unless you are deaf and blind..the Malay bashing..harga barang naik..The negative feelings is settling in..Not among the opposition supporters... But among people like us bro...the diehard UMNO-BN supporters. We can't support a system which is disengaged with the reality.

Anonymous said...

What about my comment on RON 97

Anonymous said...

Agreed that RON97 should not be subsidised.Only rich people use RON 97.Take away fully the subsidy the Government will save a few million dollars.

The increase of 20 cents RON95 has multiplying effects on cost of living, of which the poor will find hard to coup. Now their buying power has been reduced drastcally due to inflation.

The government does not have the capacity to control the consequential increase in prices of goods and services.

The government should find ways and means to cut wastage and do away with non-important projects and expenses.Not take away the subsidy.

Let's see how Najib's BN will fare in PRU 14.


Anonymous said...

tu direct punya citer...kalu indirect...hancus