Making Up for Fuel Subsidy

http://www.freemalaysiatoday.com/2011/05/17/fuel-subsidies-like-opium-to-be-cut-gradually/

There was no more jovial cosmetic joking on the radio about Manchester United, late tweeter nights that piss the missues off this time from the Prime Minister.

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Fuel subsidies, like opium, to be cut gradually
May 17, 2011


Prime Minister Najib Tun Razak says the estimated cost of fuel subsides for this year had soared from RM11 billion to RM18 billion.

OXFORD (England): Fuel subsidies are “like opium” to the Malaysian economy and will have be reduced gradually to bring the budget deficit under control, Prime Minister Najib Tun Razak said yesterday.

He said his government had budgeted for fuel subsidies to cost the economy RM11 billion this year but that the estimate had soared to around RM18 billion because of high international crude oil prices

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Apart from failing to mention that being addicted to (and jealously & irrationally guarding) uncompetitive handouts from public funds is also an opium that breeds complacency, extremely unhealthy work culture and credit worthiness, what is glaringly missing from 1Malaysia Prime Minister's (previously known as “Change Your Lifestyle DPM”) explanation is how much additional revenue Petronas is enjoying, and how much dividend Petronas can and have to pay to the Federal administration.

So out of desperation to find out if the doomed Malaysian consumers can be saved, I spent an hour in the Internet and manage to present some areas where savings at least equalling to the subsidy expense can be made. Let's see if a broken down accountant with bad eye sights can offer any suggestions:



1) we probably do not need some fancy Cougar Armour Personnel Carriers which gobble up RM7.5 billion over 10 years, that will save us RM750 million a year.

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http://www.malaysiandefence.com/?p=1417

The Cougar project has just started while the SGPV/LCS project will be signed, most probably, at Lima 2011 at the end of the year. Again as I had mentioned I am wary of having the government announcing the ceiling budget for any project under negotiations as the final price had always tracked the approved budget. In this case, the LOI was worth RM8 billion and the LOA (contract) is RM7.5 billion, a discount of RM500 million.

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The greatest threat we are facing now are probably candle holders, black coffee drinkers, cross country cyclists, people who want to give a teddy bear as a birthday gift, people who lay down on their faces protesting against poison plants etc. Or maybe some idiot with a loud month yelping senseless, outdated and definitely irrelevant provocations from Kelantan to Gombak recently or some lunatic who fancies himself as a respectable journalist or editor.


2)Subsidies paid by Tenaga (recovered from consumers) to IPPs which the then CEO objected and subsequently was retired from his position.

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http://semutfire.blogspot.com/2009/11/pengeluar-tenaga-bebas-ipps-sebenarnya.html


Menurut 1 temuramah akhbar The Star dengan bekas CEO TNB, Tan Sri AniArope. Semasa perjanjian pembelian tenaga (Power Purchase Aggrement –PPA) di buat. Dia hanya diberi seperti, ini harganya, ini jumlah tenaganya dan ini jumlah tahunnya, kamu hanya perlu setuju sahaja. [6]. PPA yang berat sebelah antara IPP dan TNB itu dikatakan menjadi punca Tan Sri Ani meletak jawatan sebagai CEO TNB. Dalam temuramah tersebut, Tan Sri Ani berkata – TNB dipaksa untuk menerima harga yang ditetapkan oleh IPP
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Base on the latest audited accounts of TNB, RM12 billion was paid to these IPPs (Incredibly Profitable Privateers)in 2010




Note at the bottom, "purchase from IPP"; note 5 of Tenaga Berhad's audited accounts 2010


3) Toll compensation paid to Plus Engineering Berhad which in substance is a tax payers' guarantee to the annual dividends declared by the company to its shareholders as the amount of compensation received (RM777 million) correlates nicely to total dividends paid on 18 May 2010 and 24 September 2010 totalling RM875 million.





compensation paid by the government (i.e. tax payers like you and me) to Plus Engineering Berhad; note 5 of it's audited accounts 2010




note the dividend paid by Plus Engineering Berhad as mentioned in note 14 of it's audited accounts 2010, almost the same amount as the compensation. Since when tax payers' are suppose to pay dividends to private investors?


4) Now why does a single Prime Minister Department needs so much money for? Isn't it suppose to be "kepimpinan melalui teladan"? Leading by example is a much appreciated form of leadership, especially from some one who famously and correctly tell people to "change their lifestyle". The allocations for PM department in 2011 budget bloated up to RM15.8 billion. (refer http://en.liewchintong.com/?p=835)


Previously in 2005, the PM's department budget was RM4.1 billion (Source: The Budget - How the government by spending our money by Teh Chi-Chang)

So lifestyle definitely changed and for the better for certain people! Surely halving the allocation to benefit all Malaysians to a tune of RM7.9 billion rather than selected individuals and exclusive contractors make sense, right?


5) What do we need submarines for? They are no good for chasing pirates and I simply do not see the need for potential sinking coffins in our defense needs - against pirates, peaceful protesters, possible armed lunatics hiding in the natural or concrete jungles. Maintenance cost alone of RM290 million can be saved, even excluding the purchase cost, some dodgy commission which attracted interest from north of China to south of England. (OI did not say the "M" word)



6) if even your own staff do not buy your products and services base on an advertisement that does not reflect the actual quality and substance of your product and services, one should not engage the consultant and professional advertiser in the first place.

the great 1Malaysia sales pitch have been shredded to pieces smaller than micro bikinis by one's own brochure editorial team, own's lietenants, one's outsource contractors etc

No point advertising something that your team do not internalised and associate with, let alone deliver it. Better to save the money, do not advertise and buy some petrol or sugar with it instead---lah!


Well I think I clock up RM22 billion within the hour. Too bad none of it is coming my way, not in a million years!

2 comments:

  1. It's a wonder this country is still standing.

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