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“The government is now taking measures to reduce the difficulties that result from rising prices.”
PM Abdullah Ahmad Badawi on his government’s cost-cutting measures to counter a whopping oil price increase announced by none other than himself.
Rising oil prices is a global problem the local man on the street has to come to grasps with. So I shall write this from a completely layman’s point of view. Experts are welcome to share more in the comments section.
Yet it is understandable why the average Joe from oil-exporting Malaysia is finding it hard to comprehend the rationale behind his government’s overnight move to increase petrol prices by more than 40% after months of noncommittal statements regarding the issue.
Simplistically put, a net exporting (exports > imports) country like Malaysia should profit when global oil prices increase. Demand for oil is ever increasing, but the limited supply (that would inevitably run out one day) pushes the value of this prized commodity up.
So, logically speaking, an oil-rich country like Malaysia, which is projected to be a net exporter until 2014, is making more money when prices skyrocket. Why is the country suffering from the “effects of global oil prices” then?
Let’s see what the government has to say for itself. In defense of this unpopular move, Abdullah has said that increasing oil prices burden the government because, in order to have domestic oil prices remain low, it has to hence increase subsidies, which is economically unsound in the longer term. Plainly put, the money for subsidies could be better used.
“Hey, but aren’t we making effing tons more than that just exporting our oil?” Screams the frustrated consumer.
Shockingly, Malaysian national oil company Petronas has washed its hands clean off this issue. Its accounts are not open for public scrutiny. It is categorically irresponsible to the rakyat, and only answerable to its “stakeholders”, which spells, invariably, in the letters of U, M, N, and O.
My comments in the above may sound reckless, I’ll try to put it in a less emotive manner. First, below are excerpts from comments recently made by Petronas President and CEO Mohd Hassan Marican:
Petronas could go bust by 2018 (June 6, 2008)
KUALA LUMPUR: Petronas will go bust within 10 years if all its profits are handed to the Government to continue subsidising fuel, said its president and chief executive officer Tan Sri Hassan Marican.
He warned that many national petroleum companies in the world have ceased to exist or were in financial trouble today because all their profits were taken away from them.
“Petronas has played a major role by giving back a substantial amount of its profits to the Government,” he added.
At the close of its financial year in March last year, the national petroleum company had given the Government RM52.3bil in taxes, royalties and dividends which worked out to be 32% of the Federal Government’s revenue.
“Since the formation of Petronas in 1974 to last year, the company gave the Government RM335.7bil out of a total profit of RM570bil,” Hassan said.
Commenting on the fuel price increase, the Petronas boss said the corporation did not make a sen from the increase.
“All the oil companies get full market price for the petrol and diesel that they sell and the Government pay them the difference from the fixed price. This is where the subsidy comes into play,” he added.
and…
Petronas calls for removal of fuel subsidies (June 10, 2008)
“While the industry is stepping up efforts to bring more energy to the market, much needs to be done on the consumer end to ensure that greater energy efficiency is achieved,” he said at the 13th Asia Oil & Gas Conference yesterday.
“While this is being pursued, nations must also work towards a gradual removal of generous energy subsidies, which cause unmitigated consumption and market distortions that are unmanageable in the long run.”
The dichotomy hence is that Petronas is not the Malaysian government, and vice versa. Petronas is a government linked company, but it is apparently bound to private interest, profits, which sets its role apart from that of the government. They pay the Malaysian government taxes, royalties, dividends, etc. So, that’s the Malaysian government’s oil revenue. So, tell me, who is Petronas answerable to? Frankly, I don’t know, but aren’t Malaysians, each and every one of them stakeholders of Malaysia’s natural resources?
The question thus, is where Petronas’ profits has gone to. Apart from giving back to the government (which the government then uses as subsidies), apart from re-investing in technology, drilling, and exploration, where has its profits gone to? Does the rakyat really have no claim whatsoever to Petronas?
Let’s not forget 2014 is not that far away a future. Globally, an oil crisis is impending. Already, a food crisis is looming. What does Abdullah’s administration have in their plans? What does Petronas have in mind?
Malaysia has practically zero plans in store for alternative reproducible energy. Other than pushing the consumers to conserve, we have seen nothing else worthy of note. Lots of rhetoric, no mechanism.
Abdullah has urged Malaysians to “change lifestyles”, and he wants to be seen taking the lead, which is the gist of the opening quote of this post. But really, how much more can be changed?
The rakyat are now taking to the streets. Opposition leader Anwar Ibrahim has promised a “Million Marchers” rally to oppose Abdullah’s decision, and claims September 16th will be the last Malaysians see of this inhumane, corrupt, and unjust government.
Or will we not?
~~~~~
The world closing in
Did you ever think
That we could be so close,like brothers
The future’s in the air
I can feel it everywhere
Blowing with the wind of change
Take me to the magic of the moment
On a glory night
Where the children of tomorrow dream away
In the wind of change
Walking down the street
Distant memories
Are buried in the past forever
Scorpions – Wind of Change
“An investigation would not reveal anything more than what we already know. In my view, we need to look at restoring the integrity of the judiciary.”
Zaid Ibrahim, De facto Law Minister, on a judge’s revelation *(a must read) of direct executive interference in the judiciary.
After the VK Lingam tape, a High Court judge has now come out into the open about the devious undercurrents maligning the Malaysian judiciary.
Justice Ian Chin’s account of how the government, particularly during the rule of Mahathir Mohamad, pressured judges into siding with state interest is damning in hulk proportions. He offers, before he sat to hear a petition regarding one constituency’s results of the March 8 elections, that his position of neutrality could be perceived as contentious because of previous run-ins with the ruling Barisan Nasional government.
Among other things, Chin has claimed Mahathir “berated” a couple of his judgments, that he was sent to a correctional “boot camp” thereafter, and how the “Sword of Damocles” has been dangling over his (and possibly other judges’) neck ever since.
Interestingly, the law minister Zaid Ibrahim has rejected the possibility that Chin’s claims be probed. Yet, instead of dispelling the contents of Chin’s revelations, he has went on to further confirm and corroborate that, indeed, we have a tainted judiciary.
If an investigation will not reveal “anything more than we already know”, what is it exactly that we already know? That your government not only fix judges, that they are pressured into worshiping your instructions?
“Another investigation, inquiry or commission will just reveal what we have revealed before. I think we should move on and not waste more (of) taxpayers’ money,” he said.
Move on? How condescending can that be? Is Zaid telling the rakyat to forget about Mahathir, his wrongdoings, and just support Abdullah’s promises, since they don’t like each other anyway? What sort of reform is this?
For starters perhaps, Zaid and Abdullah can tell us what and where we should be moving on from. There’s no point preaching a heavenly destination when you cannot admit the dump Malaysian democracy is in right now.
You don’t restore trust by sweeping more crimes under the carpet, and hope we forget. We never will.
“Indeed based on the arguments of the Commission itself I can say that possibly it was set up in order to find something to pin on me, to drag me to court etc and generally humiliate me.”
Mahathir Mohamad, former Prime Minister of Malaysia for 22 years, responds to the possibility that action could be taken against him for his part in judicial fixing.
I’m generally lost for words.
Tak malukah?
And please, before you flame me for insulting Malaysia’s greatest leader, ever, pay a visit to Antares.
~~~~~
Desperado, why don’t you come to your senses?
You been out ridin’ fences for so long now
Oh, you’re a hard one
I know that you got your reasons
These things that are pleasin’ you
Can hurt you somehow
…
Desperado, oh, you ain’t gettin’ no younger
Your pain and your hunger, they’re drivin’ you home
And freedom, oh freedom well, that’s just some people talkin’
Your prison is walking through this world all alone
“Anyone can make up a story.”
Kajang police chief ACP Shakaruddin Che Mood explaining the police’s right to protect itself in reference to the recent case of police violence at Bandar Mahkota Cheras.
Duh. Who’s making up excuses for whom?
When the police commit a crime (in this case, it’s battery) , who investigates the police? It’s a trick question, really, because the police investigate their very victims instead.
What impartial investigation are you promising when you are already defending the police’ right to defend itself? What sort of findings can we expect from you when the suspects are none other than the victims themselves? And you already think they could be making up stories! What nerve.
Right, anyone can make up a story, even when pictures show otherwise. Welcome to Malaysia.
PS: MCA lawyers are representing the victims, I hope they know their Human Rights 101 :)
“If we can look at the government and the laws, by all means do that, study the law – the so called restrictive laws – and make representations to the relevant minister and the government. But what I want to talk to you today is can the press today start looking at itself?”
Zaid Ibrahim, de facto law minister, on why the laws should not be blamed for the press’ irresponsibility.
I shall stop short of saying “I told you so”, but let me just say I wasn’t entirely surprised by Zaid Ibrahim’s stand on the issue of press freedom.
His idea of a responsible free press is a whim trapped in a vacuum devoid of social context. If he was arguing this in an undergraduate paper presentation somewhere far, far away from Malaysia, I’d say it’s fairly acceptable.
But for a cabinet minister, who you’d expect to have a better grasp on the issues and baggage at hand, Zaid Ibrahim’s washing of hands off a shackled press’ dirty underworld means he’s plain irresponsible.
The larger part of his 10 minute speech were rants against the press’ inability to want press freedom badly enough, their culture of feudal kowtowing, and their blaming “so-called restrictive laws” for their every fault. The rest of it were mostly questions directed to the audience (made up mostly of journos) asking them why they can’t perform more responsibly.
Not one word was said about political ownership of the press, not one murmur against deliberate marginalising of opposition voices, and not one whisper on the numerous cases of the various laws being used to clamp down on the press.
In the end, it was all about “self-liberating” oneself not from but within the shackles of the government Zaid represents.
“I’m not here to endorse anything I’ve not read or considered”, said Zaid in opening his speech. Obviously, he hasn’t read a lot, or considered anything more than his political career, ie. promotion, in his own words.
The very fact that our mainstream press are less-inclined when it comes to defending altruistic civil freedoms remains so not because it is intrinsically irresponsible, but more because Zaid’s government is actively ordering it to act so, lest we forget the phone calls editors get once in a while.
And the press acts as if they are intrinsically irresponsible to the people (fourth estate, yadayadayada) because they are responsible to their paychecks, their licenses, and ultimately, their negotiated freedom.
It’s sad, and distressingly so, when someone like Zaid in his position would choose to ignore the very basic and underlying factors when it comes to charting a road map for a more democratic Malaysia. Will he go back to the cabinet and tell them “the truth, of what is right and wrong”, and defend the so called basic principles he supposedly shares with us?
Humbly,
Konsyenz (A Voice Within)
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