TEN companies have been hauled up for raising the prices of goods as result of price hike stemming from the unity government’s fuel subsidy rationalisation exercise.
With the targeted diesel subsidy, the price per litre of diesel has shot up from RM2.15 to RM3.55, an increase of more than 50%.
The targeted subsidy was rationalised on the grounds of government saving money to the tune of RM4 bil, getting rid of diesel smuggling and other forms of leakage.
As I have said before, the targeted diesel subsidy was introduced without understanding its full ramifications. There were suggestions for gradual targeted subsidy but the government took no heed.
Financial experts had warned that the targeted diesel subsidy will trigger a chain reaction leading to the rise of the prices of goods and services.
Hardly a week has passed with the introduction of the targeted subsidy when the prices of goods and services started to soar. It is merely the tip of the iceberg that only 10 companies have been identified for I am sure that there are more companies which have hiked the prices of their goods and services.
The targeted diesel subsidy would not have been necessary, if only the government through its various enforcement agencies checked and controlled the leakages of diesel fuel.
However, rather than relying on the enforcement agencies, the government sought to opt for the targeted fuel subsidy measures with RON95 likely to be ‘freely floated’ in the later part of 2024.
‘Worst has yet to come’
The only good thing of such subsidies is the payment of RM200 per person on a monthly basis from the special Budi Madani fund. This minuscule amount makes a mockery in terms of surmounting the difficulties posed by inflation.
I believe that even with the backing of effective enforcement agencies (which is unfortunately not up to par at this moment in time), the government might not be able to control the price of goods and services. The country has yet to see the worst as a result of its targeted diesel subsidy policy.
It is strange that Prime Minister Datuk Seri Anwar Ibrahim targeted the rich and powerful for the government policies having gone astray in assisting the poor.
Anwar is an accomplished leader in the politics of rhetoric. He fails or pretends to understand that given the skewed economic and social structure, whatever egalitarian policies introduced would have their shortcomings.
What is the point of saving money when inflation becomes unmanageable? The burden as usual will be shifted not to the rich but to the poor who can hardly make ends meet.
What is the point of saving money by the provision of targeted diesel subsidy when the financial burden is complemented by the rise in the price of goods and services. Yet, the government boasts of keeping inflation under control.
Well, if the government is facing the financial squeeze, is the targeted diesel subsidy the answer? Why should the poor and unfortunate of the country pay for the mistakes and follies committed by those in power?
Why should the poor in the B40 category be financially squeezed by those who continue to indulge in corruption and financial misdeeds?
Surely, Anwar’s rhetoric against the rich and powerful cannot validate the half-baked targeted diesel subsidy that invariably affects the poor and the unfortunate.
Wouldn’t it be wise for Anwar and his cheer leaders in the cabinet to take another look at the premature introduction of its targeted fuel subsidy policy?
From now on, can I humbly suggest that Anwar stops talking about reforms. What we have under his Madani government is anything but reforms. – June 17, 2024
Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the United Rights of Malaysian Party (Urimai) interim council.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
