Friday, June 4, 2010

Reiterating the Points.

To reiterate my point of our Government getting their priorities really wrong, once again, allow me to point out yet another disappointing news that has befallen onto our nation.
The Government has recently announced the motion to slash subsidies off from our daily necessities. It is a motion that receives mixed emotions with some lauding the move while others cringed so much at it, it almost look like they have been suffering from constipation for the past thirty years.
As someone who views our nation's economy in a long term, I approved the motion, though not whole-heartedly. It is partly because of a flaw in the motion, hence why the rejection from several parts of the Rakyat.
First off, the cut of subsidies in the wrong necessities of course, earns the nation's wrath as it was deemed as unnecessary and almost trivial yet causing a nationwide problem. The cut of subsidies in wheat, sugar and petroleum was of course, frowned upon because of the imbalance it might trigger in the market. Here's the reason for the flaw. Suppose you propose a cut of subsidy, wouldn't it be fair and wise to actually impose a minimum wage ruling to help out our Rakyat? A minimum wage, in the long term, boosts economy even if there is a price hike in local commodities. It's basic economy that the Government has failed to look at thoroughly.
I know, some of you people out there are already chiding me for being naive. I do agree that the minimum wage policy can't be implemented because of Malaysian's attitude in general. Lazy, unmotivated, yet wanting an easy job that offers high salary. Now you tell me, where in the world can we find such a job? Even prostitutes in Taiwan have to make a living by working hard, not forgetting the part where they have to pay taxes too. Honestly, part of the reason why the Government is suffering from a deficit every year is due to very VERY obvious reasons. Let's list them.
A. Corruption.
B. Unnecessary spending on stupid projects. (Like planting stupid deco flowers along the street only to change the entire plot after a month with NEW different flowers or incidents where there are ten people from the Government sector working on digging the road where three are working and the other seven supervising. Once again, wrong priorities.)
C. Tax evaders, and we know who they generally are.
D. Poor/wrong investment. (During the fall of Wall Street, our Government could have bought and bail out the entire entity, but our Government eventually chose to buy out a bank in Indonesia instead.)
E. Unequal/Unfair subsidies.
F. Tributes. (Almost too sensitive to say. I'm not going any further on this one. I still cherish my friends.)
G. And of course, general subsidies.


So, it's pretty clear on how the taxpayer's money is spent on.
And now, let's get back onto topic. Apparently, there was a hike which I, as a part of the nation lauded the movement entirely, which is the hike of price for a 20 stick pack of cigarette. It's really a move which deserves a praise yet I don't think the Government has done enough. Singapore charges a S$13 for a 20 stick pack while in United States - Alabama to be precise, according to a friend of mine there, it costs a freaking USD15 for the same amount of cigarette. Malaysia on the other hand, proposed a floor price of RM6.40 per 20 stick pack. In case there are some readers who didn't know our currency, when converted into USD, it's about USD2 or a little more?
Now, seriously?! I mean, you wanted to curb smoking. You don't even enforce any rules. And when you do, you don't even do anything at all to punish the people caught smoking for various reasons. The Malacca Government hung up several posters earlier this year and launched a "Smoke-free Melaka" campaign.


http://www.seatca.org/index.php?option=com_content&view=article&id=776:smf-melaka&catid=1:regional-updates&Itemid=57


I don't know about you people, but I seem to notice that nobody gives two shit about it. I still see cigarette butts strewn all over the Victoria Fountain square, courtesy of "beca-pullers" or trishaw drivers. I also see locals puffing away like no tomorrow in our so-called "smoke-free zone" which covers the entire Melaka town area. I also spotted workers of the MBMB public swimming pool smoking away right inside the compound, just beside the "No Smoking : Fine RM 1000" sign. Is this for real? Good work oh Chief Minister Ali Rustam, the minister whom was convicted of money politics by his own political party yet can still sit comfortably in our senate and become a Chief Minister. It just proves how silly our Government is, with their empty promises of erasing corruption. There's just a bitter lack of enforcement and it's very EVIDENT.

Okay okay.. I've been drawn way out of topic. About the price hike of tobacco. Right. So, if our Government imposes a higher tax for cigarette, wouldn't it be killing two birds with one stone? I mean, you can curb smoking and gain more money at the same time. And about taxes, stop taxing our Rakyat from luxuries like foreign cars just because you want to protect your own national car's market! Suppose, if you remove the subsidies from petroleum, then lower the tax from foreign cars as well! It's like, you're happy and the people are happy. Win win situation. Problem solved. Government saves money, rakyat gets luxury at lower price. You can't exactly have it all and force it down our throat!
Also, to anyone who has bothered to check, Malaysia is ranked 3rd, freaking 3rd for selling the cheapest cigarette worldwide by the Marlborough Company, although sources may not be reliable because the result was based on invested countries by the company itself. So, Malaysia is actually selling Marlborough, one of the deadliest and oldest cigarette around which offers packs which doesn't have filters at a really low price if compared globally. Indonesia ranks first, followed by Turkey. The little hike in price is definitely not enough. Oh, I've just realised, I haven't disclosed the amount of hike. It's a mere 20 sen and every bloody smokers are already complaining. For the love of your own health, just be grateful that it's only 20 sen and not a few ringgit to match our neighbour!

Cheers people. That's it for now. I know, economy is not something that can please everyone but if it's for the greater good in a long term, I don't mind spending a few more, that too, if the Government enforces minimum wage policy.
Most of the content's ideas are courtesy of my former Economics teacher, Mr Lee Tick Siong and also from a good friend of mine, Sharvan Bhojwani.

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