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Monday, June 23, 2008

Malaysia's government wins first test of strength in Parliament over fuel price hike

AP (23/6/08): Malaysia's government won a vote in Parliament Monday on its decision to raise fuel prices, passing its first test of legislative strength after being mauled by the opposition in general elections.

The victory will be seen as a vote of confidence in Prime Minister Abdullah Ahmad Badawi's ruling National Front coalition, including his highly unpopular June 4 order to raise gasoline prices by 41 percent and diesel prices by 63 percent.

Parliamentary speaker Pandikar Amin Mulia announced that a nonbinding motion to support the price hike was passed in a vote after a daylong debate in the 222-member house.

Pandikar said: "129 legislators supported the motion and 78 opposed. Therefore the motion is passed." He did not say how many members abstained or how many were absent.

A loss of the vote would not have brought down the government or overturned the price hike. But it would have been a major embarrassment for Abdullah, who has faced calls from his own party members to step down for returning the Front to power with a vastly reduced majority in the March 8 elections.

The opposition had hoped to turn it into a vote of no confidence, but the government was never in danger of losing such a vote unless ruling party members turned against Abdullah. The National Front has 140 lawmakers against the opposition's 82.

"This is a victory vote that oppresses the people. We regret it," said Salahuddin Ayub, a lawmaker of the opposition Pan-Malaysian Islamic Party.

The vote also eases fears that Front lawmakers would abandon Abdullah and defect to the opposition led by former Deputy Prime Minister Anwar Ibrahim.

"There is no question about Front MPs wanting to jump over to the other side," said Nazri Abdul Aziz, a Cabinet minister.

During the debate, Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad defended the fuel price hike.

"The government was forced to make the unpopular move of hiking fuel prices but it has not neglected its social responsibilities," he said.

After the government drastically reduced decades of subsidies, the pump price of gasoline price went up to 2.70 ringgit a liter (US$3.20 a gallon) - still cheaper than in most countries in the region.

Shahrir said the subsidy system was inefficient.

"As we move towards becoming a developed nation our subsidy system needs to be restructured gradually to ensure that our economy is really efficient and competitive," he said.

The opposition rejected the argument.

"We feel that the government does not really understand nor realize the impact of the fuel price hike," said Lim Guan Eng of the opposition Democratic Action Party.

Earlier Monday four opposition lawmakers, one in a suit and the others in shirts and ties, arrived at Parliament on bicycles to highlight the fuel price hike.

"We want the people to know that we understand their hardships and that we will fight for them in Parliament," said N. Gobalakrishan who, along with his three cycling companions, was sweating profusely.

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