• pigduck
• Jan 14,2008
• In: Nation Madness

Malaysia’s ‘Subsidy’ Conundrum

I read an ’opinion’ last week, titled “Pampered Lives and Price Hikes“ in The Star newspaper dated January 11, 2008.

I’m not an economist or a mathematician. I’m a commoner, a lowly coolie if you will. Someone who’s trying to survive in Kuala Lumpur. Like you, maybe.

I just have a few (stupid) questions that maybe you’ll be able to answer pertaining to our livelihood here in sunny (and quite damp) Kuala Lumpur.

From the article, I understand that our government has been subsidising a lot of our basic essentials. Above and beyond RM40 billion. Good thing for us! Well, we didn’t need to find out from this article. Our government’s been trumpeting this fact loud and clear for years.

However, it then tells us quite frankly that our government can’t do this forever. A review will eventually happen and we’ve been forewarned that an increase in the price of our basic essentials will happen sooner or later.

My favourite part of this article is the last part that I will quote directly:-

At the same time, the Government needs to work harder to stop wastage in projects that bring little benefit to Malaysians. Pride is one thing but if it serves little besides inflating our egos, then we should just save our money. 

We also need to contain our cost of production and be serious in fighting corruption and mismanagement. 

The campaign to convince Malaysians to be prudent and thrifty can only work if the Government also ends some of these abuses.

I gather from this article that financially, things are getting way out of hand and we’re actually, living way beyond our means.

Without subsidies, we’d have to innovate like the millions of poor Indonesians who “have turned to boiling, instead of frying, their food, when the price (of cooking oil) zooms up.”

So my questions are as follows:-

What will happen to us if the government stops subsidising everything?

Will our salaries be enough to support us if there are no more subsidies? Think not just of our current situation but of our colleagues and fellow Malaysians who earn below RM1500 a month.

Does this mean giving up the “wants” of life? The latest fashion accessories, mobile phones and gadgets, the weekly cinema trip, extravagant dinners out, nightly mamak sessions?

What do you think? How can we help ourselves?