The recent fuel hike and subsequent measures taken by the Malaysian Government (e.g. urging Govt. staff in northern Malaysia to cycle to work) has met with more disapproval than support in recent days. We have the Federation of Malaysian Consumers Associations (FOMCA) president saying that the hike was “simply too much”, the Kuala Lumpur Lorry Operators Association secretary-general claiming that “…even the present diesel subsidy was not enough…” and even the president of the Federation of Malaysian Manufacturers chiming in with “…the recent hike in fuel price may have a significant negative impact on the manufacturing industry if there is a potential increase in electricity charges.”
But that’s not all. Malaysiakini is host to much more “disturbing” talk on the fuel hike. Try the “durian story” analogy which argues that there’s no reason to decrease fuel subsidies when Petronas - a highly profitable fuel company - is government-owned (or more accurately, citizen-owned). Try this reader’s call for more transparency and accountability by Petronas (or rather, the Government). If you want even more arguments against the fuel hike, look at the responses of MDP (arguing that the Govt.’s aim of using the extra funds for public transportation and etc. would turn up empty, yet again) and DAP (arguing that the move is “highly irresponsible and uncaring”).
Luckily, we do have positive statements from Malaysians. There are those that applaud the Government’s move, arguing that subsidies benefited the rich more than the poor in the first place (but still pushing for greater accountability of Petronas’ gains). Personally, I feel that Malaysian demand for petrol has been far too high in the first place - a clear symptom of the circumvention of basic economic principles. Subsidies have undeniably served their purpose, but oversubsidies have possibly cost Malaysian companies their international competitiveness.
It’s therefore a brave move to remove these competitive hindrances, now that they are less needed. Better to wean Malaysian firms from “petrol overdependence” now rather than later as no longer can we expect kindness in today’s harsh global economy. Of course, we do also have to hope that the financial gains from the fuel hike are used appropriately.