The Star Online

Wednesday June 11, 2008

Time to spread wings

THE raising of petrol price looks set to be a contentious social and politicised issue in Malaysia. Let me offer a Malaysian perspective from across the causeway.

Living in Singapore, where the petrol price is over S$2 a litre (about RM5), I believe the Malaysian Government has finally done what it should have done long ago. Channelling RM50bil savings into better national development will do the country much good.

Anyone who professes a policy of subsidy on primary commodities would face the wrath of the people sooner or later as economic health deteriorates. It is like slowly boiling a frog to death.

However, the price hike came almost suddenly with little groundwork in preparing the people for its benefits. Coming from an election setback, the timing suggests the Government intended to do this after a win. Nevertheless, Prime Minister Datuk Seri Abdullah Ahmad Badawi has done the right thing with rectitude despite a weakened mandate.

Indeed, he has shown to be a leader of great sincerity and understanding. My only wish is that he had acted on many policies earlier and faster.

Malaysians ought not be carried away by calls by “opportunists” who profess a return to subsidised commodity using Petronas earnings. I believe these distractions are again a reflection of unhappiness with the lack of transparency, cronyism or whatever perceived shortcomings of pre-election policies.

The point is if you continually do the right thing, be on your toes and increase overall economic pie, unpopular policies will be easier implemented.
Whilst Singapore residents face the same challenge of inflation (even higher than Malaysia at over 6%, the highest in 25 years), the people adjust.

There is no lack of lobby against last year’s increase in Goods and Services Tax, Electronic Road Pricing and lowering of petrol consumption tax. The people, however, know that a subsidised economy will die faster and don't seem to clamour for easy solutions as much.

The situation is not perfect but the connection between government and people is working viably. Perhaps being a vulnerable and small country gels people together much more. Our focus is not on how to milk the cow but how to have more cows.

The one wish I have is for Malaysia to increase its international competitiveness. It is imperative to have an administration which focuses on winning over the people not with popular policies but a grand plan and action to enhance Malaysia’s competitiveness.

Malaysia needs a stable government with strong rule of law, transparent business-government framework and a continuation of good multiracial social compact. It needs to increase its economic wings beyond traditional industries and domestic engines of growth. The focus should not be our backyard but the world.

Any more time spent on internal squabbling, on milking the proverbial low hanging barrels of Petronas is going to be sheer waste.

ED CHEONG,
Singapore.