The rationalisation of fuel subsidies is unavoidable in developing nations including Malaysia, Petroleum Dealers Association of Malaysia (PDAM) president Datuk Hashim Othman has said, according to Bernama.
He cited as an example Indonesia’s plans to cut fuel subsidies by 3,000 rupiah (RM0.82) before the year is up, saying that the move, drastic though it may seem, will save the country a trillion rupiah in the short term.
The PDAM president added that the money saved from reduced subsidies could go into Indonesia’s transport infrastructure, including roads and public transport. The republic is facing a US$23 billion (RM75.48 billion) fuel subsidy bill – its biggest fiscal problem.
“For Malaysia, the move to slowly reduce the subsidy will neither shock the people nor cause a sudden change in the economic landscape. The reduction in stages… will also curb any sudden increase in the prices of goods and a slow down in demand,” Bernama quoted Hashim as saying.
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They don’t get it?
In most developing/developed countries where unsubsidised fuel is sold, cost of cars are peanuts. A VW Golf costs about 50% of the price of our Malaysian VW Golf. Meanwhile, they remove the subsidies, are they willing to remove the insane tax on cars too? Only then it will be fair.
As a “Dealer” point of view, Rakyat suffer not my problem.
“Petroleum Dealers Association” affected and reduced my salary and bonus that’s huge problem.
Wondering how can this guy able to get the Datuk’s ship from?
Another cronies so called Datuk?
Thanks to “Father of AP TunDrM” their all keep sucking Rakyat money and buy properties on other country.
Padan muka DrM supporter. Keep feeding the cronies.
I hope his Datukship get withdrawn. He does not deserve it at all. Already making so much of money with your station licence. Now want to get more licence is it?
OMG…The G now only know to get $ from us…they 1 cut petrol subsidy and if the oil price dropping, they will impose tax loh…So all the G win, rakyat lose…Hopeless and Cibai G.
Can the Government give Station licence to Non Bumi also.
It looks like PDAM is like the AP issue. Give licence to Bumiputera but they don’t seem to be improving their stations. More interested to comment on issues that do not involve them.
I propose that all Station Licence be given to ALL races in Malaysia. After all, isn’t Malaysia supposed to be a Muhibbah country?
I don’t know why this Datuk from PDAM sibuk. Fuel subsidy nor fuel price has NOTHING to do with you. It is solely up to the Finance Ministry and the Government.
So, why are you coming out with this press statement? PDAM is just a bunch of privileged cronies who have got licence to run petrol stations and to see easy money fall on to their laps.
I hope PDAM can just focus on running their stations instead of bodekking the Government or as in the case of this Datuk, waiting for his Tan Sri title.
PDAM has NO business in the pricing of petrol. If you dare to come out with statements like this, then you should have the authority to give your petrol cheaper and let stations compete such as Singapore and UK. Are you going to do this Datuk?
Stations in Malaysia should be able to compete with each other in order to give the lowest price and best service in Malaysia. Government should allow stations a leeway to give up to 5% discount on the fuel so that it is healthy for the consumer.
As of now, it is just durian runtuh. If you get the licence, you get about free RM100,000 untung bersih per month falling onto your laps just pumping fuel for customers.
Since the PDAM is now involved in educating the public about subsidy and all that, I think it is high time the government ask them to compete with each other like Singapore and the UK (Australia as well) and consumers can shop where is the cheapest petrol station to go to.
Datuk, please make sure PDAM focus on improving the stations and competition amongst the stations instead of carrying government’s telur.
Wow, really? Get the PDA and CSA licence and straight on get RM100k clean profit per month straight up?
He is telling the truth. Have you not heard Indonesia and Egypt etc are all cutting down their fuel subsidies? Next time, use your brain to think because not everything from government are lies and not everything from Pakatan are truths.
Honestly, just remove the subsidies. Remove excise duty for cars while you’re at it too. The middle-income group will thank the Government.
its fully imported unit long way from Germany,
of course its gonna be more expensive..
sudonano. Sure we know Malaysian cars are grossly over priced. But do you have any suggestion on how to plug leakage and people driving huge cars because the petrol is cheap?
Simple only. Impose expensive roadtax like quadruple the current ones on luxury vehicles worth more than RM500k. Impose 10% insurance tax on vehicles value above RM300k.
Soon.
Isnin, 03/11/2014.
547 days since PRU13. Still no reduction in car price.
KR1M – Kencing Rakyat 1Malaysia
RM is going down,
but new car price like the Jazz & others
still maintain the same price…
The price should be more expensive as RM going down
Matawang Yen pun jatuhlah.
cannot agree more with this
we are striving to be a developed nation, so you got to pay the price of a developed country
as long as the government has enough income to sustain the growth of our nation, Malaysia will be prosperous nation and a model for a developed democratic country with transparency levels the envy of other nations. we are already a step ahead with our democratic goals, what we need is more tangible results, i.e. more money, in order to showcase to the world we are a high income nation with high integrity.
as long as we trust our government, we can make this work, so bring on the taxes, higher prices and lower subsidies (better yet abolish them) as this will bring out the competitive edge in all people!
Yesss…bring on more taxes so we will truly be in the 1st world league. The money can then be used for education, more highways, free healthcare and more perks/ salary increase for our wise and esteemed ministers and policy makers.
exactly, thank you for understanding the bigger picture
Mserati, while you are at it, you should give all your fortune to the govt….for the benefit of building the nation. I tabik you….
Honest words from me….
I really hope u r being sarcastic….
100% srs
I truly hope you’re being sarcastic there my friend.. Really, really high sarcasm.
truthful words. really, really high hopes for an improving Malaysia
Bro if you are talking about a consensus developed nation then there must have at least 80% transparency. Wouldnt you ask yourself Petronas holdings does not publish its annual report as i am not talking about its subsidiaries whereby their books are not allowed to be disclose to the public as Petronas is considered to be a cash cow for our govt. Yes we are striving to be a developed country the question is ‘HOW WILL IT BE ENOUGH IF THE GOVT KEEP TAKING MONEY FROM THE PEOPLE BUT DOES NOT GIVE BACK TO THE PEOPLE THROUGH ALL SORTS OF LEAKAGES FROM THE SYSTEM’
A high income nation not necessarily mean to tax the working people to death. No point earning high salary only to find it gone to rich traders/business man via over priced goods. We are a hardworking nation, its in our blood that came from grandfathers/mothers and earlier generations irregardless of our race and religion. But that is no reason to impose extreme taxes in virtually everything, prices of houses are beyond comprehendable, RM500K houses are worth RM1 Million in bank loans hence thats why the current owner puts that price tag (and more) for his junk house. No one lives pass 80 especially todays generation, realisticly no way we can pay this amount even by then.Everything is overpriced today from milk powder to food to cars, houses and of course fuel prices as well.
We are developing nation but we spend more than developed nation, seriously. Now we have to beg the government for help to subsidise the fuel. This is not good…not good at all.
yeah.. and where the 200 millions cows gone.. inside ur home?
to develop the country, what else?
Now we are subsidies the gov not the other way…
Another Bullshit
Rally can’t blame the G for removing the subsidies, but when the prices are low, we deserve to enjoy the lower rates, and not subjected to “price low” taxes.
when world oil price is low, petronas lost its high income.
so, again its back to the rakyat to cover its loss revenue.
that is why, no change fuel price in malaysia.
you wanna change? change the G then. 53% is a promising figure. lets make it 65% in 3 years time.
Please remove the subsidies, so that the Government will have no excuse for having excise duty on cars. If they add fuel tax though, that’s a huge problem.
Developing you say? What we can see is the nation is going to cease. haha..today say cannot give subsidy, tomorrow fuel price go down then say need to impose tax. How you guys run the country exactly?
I agreed. I think the G really running out of $$$ now, that why come out with this kind sohai policy…
Another day another dog r dogs bark about this shit subsidy.oo bodoh u c first world crude oil prices.v r having well knowledge about crude prices so bark according to international market trend.
of course. we wouldn’t want our gomen leaders to be under-developed right? in terms of their personal financial statements, is what I mean =)
Najib salary cut also unavoidable
Najib. Not going to happen because when it comes to salary, all Pakatan MPs also agree to pay rise.
Guys, are you not buying enough Iriz to feed the cronies?
Once they are hungry, they turn their target to everyone, anyone…
Please buy more Iriz… come come don’t be shy!
What wrong with their HEAD?
If price lowered- pay subsidy & impose MORE tax 58 sen?
Keep it Simple: Mean no subsidy & Rakyat is taxed..
That is 2015 Gomen..
Please ask your family, brothers & sisters to use Bentley to save Oil..
It’s not that the rakyat is angry over the fuel subsidy cuts. The rakyat is angry over the amount of taxes imposed on our vehicles ON TOP of the fuel subsidy cuts.
Countries like the US don’t have fuel subsidies, but their cars are almost tax-free and cheap to buy.
Dear Najib, where is the reduction in car prices you have promised the rakyat during GE13?
just abolish fuel subsidy.
this is the right time when the crude oil price is at its lowest.
what i m frustrated the side effect of fuel subsidy.
PETROL NAIK, BARANG NAIK.
PETROL TURUN, BARANG KEKAL.
PATROL NAIK SEMULA, BARANG NAIK LAGI.
PETROL TURUN, BARANG KEKAL.
….
10x NAIK TURN, 5x BARANG NAIK.
petrol subsidy is a failure and is not helping the poor.
it is infect causing more harm than good.
Agreed.
Reduce the car excise duty to zero also. Cheap car, expensive petrol is the way to go!
Reduce subsidy > Remove subsidy > Impose fuel tax > Eh, still not enough la Jib > Impose GST > I cant think anymore…
Can… scrap car older then 10 yrs… so force rakyat buy more cars.. can tax more… get more $$ from APs
We shall forever be a ‘STILL developing’ country. Always still in the race when countries like Korea, Thailand and Indonesia have overtaken us by tens of years ahead. Wait a minute….is it developing or about to develop country ? Hahhahahaha. Terima kasih Banjingan Nasional.
Another loser excuses? loser loser!!
the issue is , we all know where the subsidies will go…we all for diverting funds from subsidies to education,health,roads and transport and general well being , but sadly , the reality is painful to say…
Dude, we do not want the subsidy. Look at the damage it has done to our nation as a whole.
Take away the bloody subsidy and give us better quality petroleum. Do you honestly think the poor will benefit from what little subsidy you have given them? Save those subsidies and build more schools and better roads instead, BN.
the poor is either on motorbike or bicycle.
how much petrol can a motorbike use per month?
RM25? RM50?
the domino effect from petrol subsidy of SUKA SUKA TURUN, SUKA SUKA NAIK is causing more harm to them.
everyone knows in business there is only BARANG NAIK. there is no BARANG TURUN.
For your info, as a bicycle user I normally ‘use’ about RM10k of RON95 monthly. It is because I resell it in Golok at a higher price.
I hope Thai gov will increase their fuel price higher and our gov will maintain or reduce our fuel price to enable me to get higher yield. Hehehe
Love the sarcasm. Haha.
Slightly related: Anyone here ever played a game call Democracy? There’s no single policy that you as a government can take and makes everyone happy.
Just like petrol, if I tax the petrol in order to have money for free education, motorist would be angry but parents with child would be happy. Problem is, most parents are motorist as well.
Policy making is like juggling 10 knives while cycling on a uni-cycle like a clown in a crowd. You make people laugh and cry at the same time.
Keyword is not democracy here, is songlap.
It’s not a keyword, it’s a name of a piece of software that claims to be a government simulator. I just find it interesting and wonder if anyone ever came across it.
I don’t even know what songlap means…
Google is your best friend. And the comments below are related to it :)
Happy learning!
i think people are not necessarily angry at cutting down the subsidies; people are angry at how the government is managing the money after cutting down the subsidies. not only they have never realized what they promised to rakyat, worse still they ask for more subsidy cutting, because the money that the nation has run dry already.
where did the money go all this while? it is not like the first time the government cutting down the subsidies over some goods already? why is it still not enough and more subsidies have to be cut and more taxes have to be imposed? where is the extra money? why we rakyat has to pay the bill and they get to drive better and better cars, have higher and higher salaries and allowances, is becoming richer and richer, and still are not doing anything good?
While I agree with your comment partially, but you must understand that most people are unhappy is not because of fuel subsidies reduction. The main reason is people’s life and everyday expenses are rising and yet G keep making it worse while all those elites in G are enjoying lavishing lives via cronyism/corruption. After all that, they can still smile and tell the people to be prudent in spending. To add another point, the G are not making any efforts at all to improve the economy (don’t tell me BR1M is one of them, it doesn’t help in long term).
Imagine if everyone is earning an average of 8k and above while enjoying quality life, I don’t think many people will make a big deal about this fuel subsidies reduction as it will not impact their life as much as it impact ours currently.
Agreed, I fully understand what you mean.
Policy can be made to ultimately benefit everyone. There are some policy that stings in the short term, or just look bad on the surface but it’s helping everyone silently.
I’m unhappy as well, because I think something is taken from me but I did not receive anything in return. Overall thing turns for the worse. I felt that the government is taking things away from the middle income, gave it to the elites, while giving the crumbs to the lower income to keep them happy.
I’m also unhappy that the country isn’t run in the way I wish it is, I’m willing to make sacrifice for the greater good for all but this isn’t what I hope for.
How much Ahmad Maslan or BN pay you?
0. They don’t get my vote.
Sometime I find it hard to start an intellectual conversation here. Either I’m doing it wrong or I’m talking to the wrong crowd.
Everyone just want to hate and shoot and criticize and judge, nobody wants to just sit down and talk about things from a neutral way or explore new things.
I can’t blame anyone though, sometime I too read what I want to read instead of what the original writer actually wrote.
Pakatan supporters are a lot like the BN cronies. Example, they all like everything cheap or free without thinking about the consequences. They wanted cheaper petrol and don’t care about fuel smuggling nor environmental damage. So what’s the difference between the 2?
Actually, no. I prefer that they float the price like other developed countries do. I also prefer that they only put sales tax on cars and not that “excise duty” tax which goes to the lazy and corrupt. Try living overseas for a few years and your eyes will be opened. I prefer zero subsidies.
I like this post.
This is the exact reason why I post neutral opinion trying to get people thinking.
I supported Pakatan because initially they seems more of an intellectual type, and BN are just mindless zombies. But soon as time passes, Pakatan supporters are just mindless haters as well so I thought maybe it’s time to really think about stuff.
As expected, post something that requires thinking and people hates you or accuse you of supporting the side they hate.
Chris. You are very right to some extent – the cronies are laughing, the ppl are crying.
OMG…If the G know how to spend our tax payers money wisely, all this nonsense will not happened now.
reduce corruption first you will save a lot of money there.
If want to subsidise, then everyone should benefit from it regardless of income.
If want to remove subsidy, by all means remove it. Not like that few cents can make you a millionaire. To those who says these few cents means alot to them, then i suggest you ride a bicycle or work harder because it is clear that you are unfit to drive.
Fuel price will always go up as petroleum is an ever decreasing resource.
The world will never use up all the oil, it’ll just be so expensive one day that the world would switch to other alternative fuel like hydrogen. We are seeing a stepping stone now which is the batteries.
Countries like Indonesia have such a high subsidy bill is because their population size in comparison to Malaysia. Our population is small in comparison.
Our beloved authorities always like to make such comparison, which actually make them look like anything but well read people.
We always see such stories about fuel subsidy being brought up, but nothing that relates to policies that help reduce costs of living as a whole.
The gov always mentioned they will go out and conduct price checks after a raise in petrol prices, but prices of goods always goes up after such an incident. It just a pile of propaganda to make get themselves in the media. Its more like a popularity contest rather than doing their job as public servants to be providers to the people.
if want to cut, cut everything don’t be biased to any one.
Rich people tax more, normal people tax less and THATS IT !
In other countries, when subsidy for petrol is removed, the car’s are not tax at all or tax at a much lower rate.
In Malaysia, we are screwed both ways, where can?!
We get the subsidy cut part. We just don’t get the petrol tax part.
I don’t get the fixed price part.
I’m going to get a lot of hate for this but I truly believes in pollution tax. Likely the more petrol you use the more pollution you create, thus taxing petrol equals taxing pollution.
What I still dont’ get is the “the cheaper the oil, the more we ‘tax’ it to maintain the price” thing in the previous post.
Clean air should be free. If they build more proper bicycle lane, I’d cycle to work, I just value my life more than clean air for now…
indonesia, indonesia punya hal la..apa sibuk PDAM nk bandingkn malaysia ngan indonesia..tgk negara sendiri dulu lah..ini la masalah pemimpin di malaysia..suka ambil tahu hal negara lain lepas tu bandingkan dgn malaysia dgn pelbagai alasan..pffttttt
Tapi bila rakyat bandingkan dgn negara lebih maju. Puak diorng akan kata” tak suka u keluar, sini Malaysia”. LOL… pelik betul puak diorng.
rosmah say u all tak jimat cukup….
1st, when global fuel price increased, government said they have burden subsidy the fuel. So they need to cut down the subsidy. (This I understood )
2nd, when global fuel price decreases, they don’t need subsidy the petrol. Terbalik plan to charge us Sales Tax. This is CRAZY and RIDICULOUS!!!
Another cronies Dealer in the talking.
Drop the car tax like Indo and Thailand before talk on reduction of subsidies.
Do you believe this cronies Dealer?
eh… in developing countries, people subsidize the fuel to government?
They should reduce the cronies profit (IPP, car AP, toll/sugar/rice/astro/internet/telecom cronies, car tax) before reducing the petrol subsidies.
If Malaysia is serious about becoming an advanced nation, first of all it should liberalized its market. Govn protection towards Proton and the AP system are obstacles that really holds back a nation.
I am fine with floating the fuel prices as long as the Govn is willing to reduce its high vehicle taxes.
But to maintain its high vehicle taxes, reduce fuel subsidies and continue with our poor public transportation system is to rip off the Rakyat in multiple directions.
Sad to say even without subsidy, our country will still be a undeveloped country thanks to Jibby and his snakes.. nothing but robbing own citizen
My view, if you look at the picture holistically involves also government revenue collection, thus fuel subsidy and excise duty for cars are related in many ways. Excise duty, I believe, is there to ‘cover’ the cost of providing fuel subsidy therefore any reduction in providing fuel subsidy should see a reduction in vehicle excise duty and vice-versa. Excise duty should not be used to cover other revenue shortfalls which I believe is poor financial management.
fuel subsidy cut is ok. but car tax MUST reduce at the same time!
Tarpis Crude, price on a down trends and it has lot of implication of country deficit, forecast of 3% for Budget 2015. Govt oil revenue export drop predicted to drop by 30% would be a challenge to keep 3.5% deficit so brace yourself for another more painful financial news for rakyat and pray G and Bank Negara for proper monitor of this situation.
According to an estimate reported by The Edge Financial Weekly, every USD 1 per barrel drop in crude oil prices would cost the government about RM650 million in revenue. Seriously it was not taken in account when he announce the 2015 budget.
ya…in a develop nation…no one will be staying in kampong anymore..internet speed is 50mbps by average…car will not be tax ridiculously….and educated ppl will not vote for BN
ya…in a developed nation…no one will be staying in kampong anymore..internet speed is 50mbps by average…car will not be tax ridiculously….and educated ppl will not vote for BN
another true crony speaks up…well done! we will remember ur name now
float the price. dont talk about subsidy again
The right statement
Fuel subsidy cuts unavoidable in democracy nations, says Petroleum Dealers Association of Malaysia
Not developing but democratic country
It’s what I have been saying for some time. It is unavoidable due to a budget shortfall.
I still say float the price of petrol by market rates. Wipe out the car tax. Impose GST and tax everything equally. Then raise taxes for the rich to 50% (because otherwise, as history proves, the rich will colloquially f*ck the poor).
A basic (no leather. manual. no fancy auto headlamps etc) basic Golf 90kw 1.4L 3 door costs about RM90k in indonesia.
There’s no free lunch either way.
Bottom line: More malaysians can afford cars today than in years prior… and car ownership remain more affordable to malaysians than our neighbours (including Singapore, btw, due to the insane COE and parking requirements.)