Yesterday, Malaysia government announced the move to cut allowances and paid holidays for ministers and their deputies. They shouted out: “Government will hand in hand sharing burden with Rakyat due to the rising cost of living standard from food and fuel prices increases. “

Prime ministers Abdullah also claims that those training or courses should be conducting in the providing places and section facilities, instead of renting hotel or function room to conduct those activities. Besides that, government should undertake the saving procedures to reduce purchase the administrative items (Barang AM) like office equipment, stationery, printing machines and so on. On the other hand, they will malleable purchase fixed asset like furniture, computer and car.

Government announced to cut off 10% on their extra allowances. Totally cut off 2 billion.

It sounds like a huge amount, but when we think deeply this particular amount actually refers to entertainment allowance, paid holidays, oversea investigation, and hotel rental and so on for only 108 ministers. Is that those expenses 2 billion is too much for 108 ministers?

The following are the prime ministers and other deputies’ monthly allowances as follow:

Prime Minister: RM18865
Deputy Prime Minister: RM15015
Ministers: RM12320
Deputry Ministers: RM6000

Do you think that 10% cut off is too small percentage if compare to thousand billion “Rakyat” in Malaysia of the rising fuel and food prices with 40%?

One thing we must know is 40% increase on “Basic needs” whereas 10% reduce is “Wants”. Read below for further explanation on basic economic.

A need is something you have to have, something you can't do without.

A want is something you would like to have. It is not absolutely necessary, but it would be a good thing to have.

We all quite support government proposed to cut off 10% on their allowance, this is a good sign for malaysian as well. In other words, government cut off 10% definitely not enough. This wouldn’t alert them about the critical inflation and high living cost. Instead they should try to cut off even more on those unnecessary expenses such as 40% to 50%.

As Kalabakan MP Datuk Abdul Ghapur Salleh said that “It’s eyewash”. He said it did not make sense to limit paid holidays for ministers and their families to local and Asean countries as such destinations could still be as expensive.

It’s eyewash, says Kalabakan MP Datuk Abdul Ghapur Salleh of the move to cut allowances and paid holidays for ministers and their deputies.

“I believe that they should set a figure for paid holiday expenses and let the ministers, their deputies and families go anywhere they want but they should not be able to claim more than their fixed entitlement,” he said, explaining that the free passage should be a fixed holiday passage.

“It is not necessary to cut that allowance as it only translates to a few hundred ringgit,” “They are pulling wool over the eyes of the people to make it look like they are also cutting back and we do not see how this is going to bring down prices for the lower-income people.” Ghapur added.
Anyway, when I noticed ministers and other deputies allowances goes into what a huge amount (resources obtained from newspaper). I was so surprised and furious that government all the while spent too much on those unnecessary things. It sounds like money wasted especially is our “Rakyat” contribution money.

Abdullah government will raise the fuel price according to international market and announce a new fuel subsidy which will take effective on 5th June 2008.

All the while, Malaysian having the petrol subsidy from goverment which currently RM1:90 per litre. "From August onwards, the feul price will be raise up and the provision that subsidies should still be enjoyed by Malaysians not ont he basis of use but on the basis on need." Suggested by Finance minister.

However, the suggestion still haven't finalise yet because it is quite difficult to define a fair and perfect schema for subsidy. Some rumor of the subsidy is based on the income, higer income group will entitle less subsidy whereas lower income groups will entitle more subsidy.

Some rumor on car basis. Big car for less subsidy, small car for more subsidy. From the above two suggestion, we can know that this could be bring benefits to lower-income group. Many judgement spreading here and there.

According to feul price raising plan, one of the main purpose is to ban the genius visitors or tourists are filling up at local stations and then turn back. They ban on the sale of fuel to foreign-registered cars in the northern border towns as you know recently most of the country have been affected by the oil and gas price raise issue.

Anyway, as a Malaysian we hope that the new implementation will bring benefits to both way either government or public.

As a the finalise result, Adullah anounced the new feul scheme just now (4th June 2008). Adullah anounced the petrol price hike up to 40% from RM1.92 to RM2.70. Those car with capacity less than 2000cc will have cash rebate RM625 per year, this is effective from July.

See how do Malaysia driver's reaction on petrol price hike