Prelude: I liked the subject economics at Diploma level, though I found macroeconomics easier than microeconomics. Partly because I had a good lecturer. [You know the Swinburne University (Sarawak campus) economics lecturer, Mdm Heng, yup, she WAS my econs lecturer!!!]. Anyway, one reason why I did not consider becoming an economist was because I cannot bring myself to see eye to eye with other economists especially those highly paid - PhD economists, "think tank" experts and ivory-towered academicians who in typical fashionable "high-flown" rhetorical arguments are taking the side of the government's decision on recent fuel hike.

There was an interview with two economists about the fuel hike. Abstracts below are taken from here.

This is what RAM Consultancy Services’ chief economist Dr Yeah Kim Leng said.

Dr Yeah: No doubt the 40 per cent increase is the biggest jump in the history, it's significant and sizeable, but if it is properly channel for development projects and for the improvement of public transportation, the public will be able to support it.
I say: Do you know why I am all against this price hike? In 2006, the government promised us hat they will improve our public transportation. But did they improve it?? I do not know, but I'm very sure that the public transportation in Kuching, Sarawak has not been improved.

Dr Yeah: The government had no choice but to allow the price to increase as it had been holding back such a move or adjustment since one and a half years ago, despite the higher fuel prices.

“It has resulted in the budget deficit to go to an unsustainable level. So today, you see a 40 per cent adjustment, which is significant but it still comes with some form of subsidy,” he said.

I say: Hmm, the government had no choice?? Read what Tun Dr Mahathir said here. Note that Tun Dr Mahathir is the adviser of Petronas so I'm sure his words and figures can be trusted right? Oh yeah, the subsidy. Thank God for that. But like what I mentioned earlier, it's still not enough...

Dr Yeah: For the middle and higher income groups, the increase will not be significant and will only slightly dampen their demand. They can afford it but with a reduced in saving, which means, real income will be lowered.
I say: WTF?? Increase will not be significant. HELLO, the increase was a 40.6% for petrol and a 63% for diesel. You call this not significant. And you go on by saying the middle-income group and higher-income groups can afford it. Higher-income groups (like you??), I agree. Middle-income groups?? I personally don't think so. Wait a minute, you said earlier on that the increase of 40% is significant. Then you say that the increase will not be significant for middle and higher income groups. So are you trying to say that you do not belong to either the middle or higher-income group?? Thus, which group to you belong to? Lower group? IF that is so, I shall categorize myself as a hard-core poor then.

Dr Yeah: For the lower income group, the government’s proposal for the rebate was a relief as it would help them cope with the increase. They will be a reduction in spending too and definitely there will be impact on the consumption.
I say: Ok, no comments. I agree on this.

And this is what economist Prof Dr. Mansor Jusoh has to say:

Prof Dr Mansor Jusoh: The cash rebates to Malaysians who owned private cars or motorcycles would benefit the middle and lower income groups.

I say: Benefit us?? Rubbish. The RM625 annual rebate works out to be a rebate of RM52.08 per month. Is it enough to sustain our ever-increasing cost of living?? Let the people be the judge.

Prof Dr Mansor Jusoh: However, the benefit of the cash rebates would not be felt by the poor who had no vehicles but had to face the increase in the price of essential items following the fuel price increase. He suggested that the government put in place a special mechanism to help the poor.

I say: Okay, thank God Prof Dr. Mansor Jusoh has some common sense this time. At the very least, he's compassionate in some sense.

Prof Dr Mansor Jusoh: The government’s decision to maintain the price of liquefied natural gas and natural gas at RM1.75 per kg and 63.5 sen per litre respectively, would benefit the power-generation industry.

“So, the electricity tariffs should not increase and Tenaga Nasional Bhd should be able to absorb the fuel price increase in the global market,” he said.

I say: Correct, correct, correct. I am of the same view as you, Prof Dr. Can you please tell Yang Amat Berhormat Datuk Seri Abdullah Ahmad Badawi that??? Datuk Seri said that the increase in electricity tariff for Tenaga Nasional Berhad will enable TNB to absorb the fuel cost for gas and coal. So as an economist, please tell our YAB Perdana Menteri that. I'm sure Malaysians will remeber your kind deed.

Prof Dr Mansor Jusoh: The increase would however impact the public transportation in major cities and towns.

I say: Funny... Datuk Shahrir Abdul Samad told Malaysian Insider this: "No, the public transport operators, there is a RM1.43 price for diesel. It's being maintained for all transportation, transport companies and all the groups that used to get subsidised diesel. You see, what has happened with diesel is that there used to be three prices for it – RM1 for the fishermen, RM1.20 for river transportation and RM1.43 for road transportation. So, we have moved it to one level, which is RM1.43, and taken out the fishermen to be looked at and looked after by the LKIM (Fisheries Development Board). So we are still maintaining the subsidy for diesel for the various economic sectors, the critical economic sectors like transportation, public transportation, you know, various categories." Isn't Datuk Shahrir trying to imply that the fuel hike will have no impact on public transport operators?? Well, we've been told the Lorry Association are going to increase their transportation costs.

Anyway, like what NoktahHitam said, those who voted Barisan Nasional should not be complaining cos their wish has been granted. I have to say that those who did not bother to vote last elections should shut up too. They did not participate in the process of selecting who will legislate and administer the country on their behalf. Therefore they have given up their rights to criticize the manner on how they will subsequently govern them.

Okay, did I vote for Barisan Nasional during the 12th GE, one may ask. My answer: You bet. Else, I wouldn't be ranting here again. The fuel hike is enough to dampen my mood to study. Well, I voted but I lost.

If fuel hike was indeed inevitable, I'd be in support of the reduction/removal of the subsidy as long as the savings from it would be put to GOOD use. I'm just unhappy with the fact that:
1. Datuk Shahrir initially said that price of petrol will NOT be increased until August, and what happened the next day??

2. The drastic increase. At least a gradual one would not be so painful...(that is if there is a need for increase in the first place. C'mon, we are not a bunch of uneducated or heartless people. If the government can reason it with us why a fuel hike is inevitable, I'm sure we will understand. Trust me, nobody is that free to go protesting but the reason why some DAP MPs went protesting today was because they know that this fuel hike is ridiculous especially after learning from the advisor of Petronas's statement. So is the price hike inevitable?? Go ask yourself? I need not say more)

3. Announcement that price of petrol and electricity increase at the same time
4. The you-know, I-know stuff, thanks to Tun Dr Mahathir in his remarks here made me realised that I cannot accept the rising world crude oil price as an excuse.

Anyway, happy World's Environmental Day, people.

Towards a BETTER Malaysia.