Re-instate the pre-Feb 28 fuel subsidy. This is what a group of 16
organisations led by the Malaysian Trades Union Congress (MTUC) wants
the government to do immediately.The call emerged after a meeting, believed to be the first of its kind, between more than 20 representatives of residents associations, rights activist groups, opposition political parties and the trade union umbrella body today.
Last week, the MTUC slammed the government's cavalier attitude in attempting to explain the reduction in fuel subsidy, contending that the move will cause untold hardship to workers particularly fixed wage earners.
Noting the spiral-effect of the recent fuel price hike - the fifth in two years - the civil society organisations are joining forces with the labour movement to push for a minimum RM150 cost of living allowance, among others.
MTUC president Syed Shahir Syed Mohamud, who chaired the two-hour meeting, said the grassroots were unhappy over the government's unilateral decision to increase the fuel price again.
"We regret this move which has resulted in a 40 percent increase in petrol price and a 102 percent jump in the price of diesel (in two years)," he told a press conference in Petaling Jaya.
"Workers on the other hand will never get a similar hike in their salaries even if they waited for three years as per the duration of a collective agreement. They can dream on."
Subsidy equals welfare
He said providing subsidies is the government's duty in taking care of the people's welfare.
"What's wrong with having subsidies if it benefits the people? Even European governments have them for various sectors."
Citing the 8th Malaysia Plan, he said 43 percent of households earn a monthly income of less than RM1,500, while a staggering 58 percent earn RM2,000 or less.
"The raised fuel prices will contribute to a deteriorating quality of life for about two million working-class families or an estimated 10 to 14 million people who will be adversely and severely affected."
The MTUC is preparing a memorandum outlining the immediate effects of rising fuel costs on the daily lives of ordinary people with recommendations to reduce the financial burden and to halt the widening income disparity.
"We will hand over the memorandum to the prime minister in Parliament on March 27. We are also organising a people's gathering at the KLCC on March 26 to explain the effects of the price hike."
The memorandum, said Syed Shahir, questions the rationale for shifting the financial burden to the people.
"Why do we have to bear the cost of financial mismanagement, abuse of power and corruption?"
Describing the fuel price hike as an additional form of taxation, Keadilan vice-president R Sivarasa noted its unfairness to the low-wage earners.
Citing the plight of fishermen in relation to the diesel subsidy, DAP secretary-general Lim Guan Eng said the drop in their haul and the hike in costs did not make sense.
He said their catch has dropped by 10 percent but the price of diesel has increased threefold.
"Why are the authorities not going after the ones who handle the sale of fish and who approve diesel subsidy, the government officers themselves?"
Unfair comparison
He also raised the question of the 'missing billions' in terms of subsidy savings and oil giant Petronas' profits.
"Where did the subsidy savings prior to the recent price hike go to? And where will the present RM4.4 billion savings go?"
Citing the government's price comparisons with Singapore, he said it was akin to comparing apples with oranges.
"Malaysia exports petroleum whereas Singapore is an importer. Singapore distributes its subsidy savings of S$2.6 billion (RM6 billion) to all its citizens but not so in Malaysia which has wealth from oil revenue."
Monitoring Sustainability of Globalisation co-ordinator Charles
Santiago (right) disagreed that high subsidies gave a bad impression of
Malaysia's macro financial policy as claimed by Deputy Prime Minister
Najib Abdul Razak last week.
"The issue here is that the fund managers are disciplining the government by working towards removing subsidies based on the notion of a free market.
"However, it is important for the government to see the larger picture and not compromise social spending. As it stands, Malaysia has the widest income inequality in Southeast Asia."
The main concern arising from the government's decision to raise fuel prices is that whatever economic progress made over the last decade will slowly be reversed.
"The issue here is that the fund managers are disciplining the government by working towards removing subsidies based on the notion of a free market.
"However, it is important for the government to see the larger picture and not compromise social spending. As it stands, Malaysia has the widest income inequality in Southeast Asia."
The main concern arising from the government's decision to raise fuel prices is that whatever economic progress made over the last decade will slowly be reversed.
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