Govt has not finalised Pos Malaysia fee

The Edge Daily (9/7/08): The government has not finalised the fee to be paid to Pos Malaysia Bhd for handling the fuel subsidy cash rebate payout to motorists, Second Finance Minister Tan Sri Nor Mohamed Yakcop said, refuting rumours that the company would get 1% of the total payout.

"We are still negotiating for a reasonable fee and we will inform the House of the amount paid to Pos Malaysia," he said in his winding-up speech on the debate on the Ninth Malaysia Plan Mid-Term Review in the Dewan Rakyat yesterday.

Nor Mohamed was replying to Dr Hatta Ramli (Kuala Krai-PAS) who said he heard that Pos Malaysia may get a 1% commission amounting to RM50 million a year from the total payout of RM5 billion.

Nor Mohamed explained that Pos Malaysia was selected to implement the cash rebate payout as the company had 686 branches nationwide with computer systems linked to the Road Transport Department.

To date, Pos Malaysia had paid out RM839.6 million in cash rebates to 1.8 million motorists, he said.

The minister also said that the government was expecting to distribute up to RM6.13 billion in cash rebates to motorists who paid their road tax between April 1, 2008 and March 31, 2009.

"This amount would be provided to Pos Malaysia in stages and the government would only extend the amount paid out by Pos Malaysia. Not one sen more," he said.

On how long the government would maintain the cash rebate policy, Nor Mohamed said the mechanism would be reviewed after the first year.

He also refuted an allegation by Wee Choo Keong (Wangsa Maju-PKR), who claimed that the ECM Libra Financial Group was involved in the cash rebate payout. "ECM Libra is not involved at all. This is a fact that can be checked," he said.

Nor Mohamed said the government's subsidy bill could increase to more than RM30 billion this year from RM8.8 billion last year due to the hike in crude oil prices.

"In this situation, the government needs to make a decision - which can either be a popular decision or a responsible one," he said. The government, Nor Mohamed said, was aware that it would be criticised no matter what decision it took.

"The trust that we hold is not only for the 27 million people (of Malaysia) now," Nor Mohamed said. "We are also responsible for the future generations. As such, the government has to find a mechanism (to reduce the fuel subsidy)."

Chor: Showing butt not our way

The Star (9/7/08): It is not the Malaysian culture to show one’s backside, Deputy Home Minister Datuk Chor Chee Heung told the Dewan.

“It is a foreign culture to do so but not Malaysian,” he said, referring to the concert at the rally to protest the fuel price increase at the Kelana Jaya Stadium on Sunday where a rock singer showed his behind to the audience.

To a question by Dr Mohd Puad Zarkashi (BN - Batu Pahat) on why the police did not take action to stop the rally, Chor said it was a rally organised by PKR.

Dr Mohd Hatta Ramli (PAS - Kuala Krai), the organising chairman of the rally, then quickly said they had controlled the situation well and the police’s help was not necessary.

More ways to help Malaysians face rising oil prices

The Star (8/7/08): The Government is working on other mechanisms apart from offering the fuel rebates to Malaysians to face the onslaught of rising global oil prices, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.

Among them was the creation of a fuel purse of up to RM3,000 for MyKad holders.

He advised that it was very important that the country practised financial discipline and efficiency to protect the livelihood of Malaysians from external financial problems.

He added that contingency plans have to be made if the oil prices were to rise up to US$200 (RM658) per barrel by the end of the year from US$145 (RM477) per barrel now.

Nor Yakcop said the RM625 subsidy rebates programme was introduced as an immediate measure to reduce the financial burden on Malaysian motorists.

He explained that the Government had analysed that about six months were needed to implement a comprehensive plan to reduce the financial burden to both the Government and the public in the wake of the global oil price increases.

"However, things happened too quickly and the oil prices began to shoot up.

"Time was getting short and we decided to introduce a repayment system (rebates) to motorists as an immediate measure to cushion the impact of the reduction in fuel subsidies.

"The Government is now studying whether to extend the fuel rebate period or implement other systems in place of the rebate payment, which is implemented from April this year to March 2009.

"There is no move to raise petrol and diesel prices until the end of the year despite the rising global oil prices," he said Tuesday in winding up the debate in Parliament on behalf of his ministry on the Mid-Term Review of the Ninth Malaysia Plan.

He said the Government had paid a total of RM8.8bil in fuel subsidies last year, adding that the amount would have to be raised if nothing was done to counter the oil price increases.

Nor Yakcop said the Government could have implemented popular measures to reduce the fuel price burden on the population, but decided against them to protect future generations.

He added the Government would face a lower credit rating and stricter financial regime if the country decided to borrow large sums of money to lessen the impact of the rising oil prices.

"We cannot be borrowing from the IMF, which is regarded as an Ah Long, and we have to surrender our sovereignty to them," he said.

Nor Yakcop also said it would be bad if the Government was to take all the profits gained by Petronas and used them to help the present generation of 27 million Malaysians at the expense of the company, which would lead to strategic and financial losses for Petronas in the future.

"Petronas had contributed RM332bil to the country since it was formed in 1974.

"If the Government takes all of its profits since 1974, Petronas will only have RM160mil to invest, which is inadequate.

"The future generations will also not receive any benefits at all from the gains received by Petronas," he added.

Nor Yakcop said the ministry was still in discussions with Pos Malaysia Bhd on the charges that the Government would pay the company to offer fuel rebates to motorists, adding that no commission is paid to the company for giving the rebates to each eligible motorist.

He said a total of RM839.6mil in fuel rebates had been paid out to 1.8 million eligible motorists since the campaign had been introduced from June 4.

Eligible motorists could get RM150 to RM625 in rebates from Pos Malaysia Bhd's 686 branches nationwide, he added.

"The Government is providing RM6.13bil in stages to Pos Malaysia to hand out the rebates to the applicants," he added.

To a question from Wee Choo Keong (PKR-Wangsa Maju), Nor Yakcop denied that ECM Libra or any other private entity had a stake in the payment of the fuel rebate scheme being carried out by Pos Malaysia.

Nor Yakcop also informed Dr Mohd Hatta Ramli (PAS-Kuala Krai) that Pos Malaysia didn't receive commissions from its involvement in paying fuel rebates to motorists.

Pants pulled down: Organisers to probe incident

The Star (7/7/08): The organisers of Sunday's fuel hike protest rally at the Kelana Jaya Stadium will investigate the incident in which a rock singer pulled down his pants midway through his performance.

Organising chairman of the rally, Dr Mohd Hatta Ramli (PAS - Kuala Krai) PAS treasurer, said "a post mortem" would be done on the episode.

Declining to comment on the matter further, he said the rally was considered a success as it went on well despite being given warning by the police for not applying a permit for it.

“It’s the first time we have held a protest a stadium. It is different from street protests. They had a chance to listen to speeches from various leaders, including the NGOs,” he said at Parliament Lobby Monday.

“We hope we have sent a strong message to the government and Prime Minister Datuk Seri Abdullah Ahmad Badawi and hope to get immediate response from them, in the next few days.

Dr Hatta also did not rule out street demonstrations if the government did not reply.

Selangor Menteri Besar Tan Sri Khalid Khalid (PKR - Bandar Tun Razak) said he was thankful to the Selangor police where the rally was held without a glitch.

He said the Opposition did not intend to bring this same protest to the Parliament.

On the rock singer who showed his boxer shorts after pulling down his trousers, Khalid said he hoped the matter would be closed as soon as possible.

“The manager of the singer has come to apologise to the organising committee on Sunday night,” he said.

Khalid also said he was thankful to PAS supporters for not protesting over the issue.

“I feel that the singer has to be sensitive and not to act over board as the crowd is from various cultures and ethnicities.

But Hatta hails rally a success

Malaysiakini (7/7/08): Although some quarters view the ‘one million people’ protest as a failure, Coalition Against Inflation (Protes) coordinator Hatta Ramli has insisted that it was a ‘success’. (Full report)

PAS wants a parliamentary debate

The Star (10/6/2008): PAS handed over a memorandum to the Dewan Rakyat Speaker yesterday, requesting a special Parliament session to debate the fuel price hike and its effects on the people.

PAS Youth chief and chief whip Salahuddin Ayub said the party hoped that the would consider the request and grant one or two days for the session.

“For the sake of the rakyat, we hope the Speaker will call for the special session early next week,” he said, adding that there would be a peaceful walk from Kampung Baru to the KL Convention Centre on June 13 in protest against the price hike.

Salahuddin handed the memorandum to Parliament administrator Datuk Kamaruddin Mohamed Baria.

Nasharuddin puts down steps taken by Government

The Star (2/7/08): The recent government measures to stem the economic fallout due to the rise in world oil prices are weak and unacceptable, Nasharuddin Mat Isa (PAS – Bachok) said.

He said the Government had not been listening to the worries stated by the people on the hardship they were facing following the recent hike in fuel prices.

For example, Nasharuddin said the Mid-Term Review of the 9th Malaysia Plan (9MP) had not taken into consideration the recent rise in global oil prices.

“What is the value of development to be paid for with RM230bil when the low-income groups and the government servants cannot enjoy this wealth and are living from hand-to-mouth daily?,” he said.

“The Prime Minister had stated that the recent measures to raise fuel prices couldn’t be helped due to pressure from outside forces.

“For us, this reasoning is weak and negative.

“We are sure that the Government can do something better than this. Unfortunately, it has not been listening to the people.

“In fact, more people will hold a protest this Sunday to express their unhappiness on the situation,” Nasharuddin added in his speech during the debate on the Mid-Term Review of the 9MP.

Nasharuddin also questioned why the country was contributing money to the Commonwealth Endowment Fund in conjunction with the 100th anniversary of the Commonwealth when the money could be used to finance the repair of schools.

He also questioned how much was given to the fund.

Oil price hike

Some 'isms' to brighten up the day

Malay Mail (25/6/08): Proceedings in the House yesterday were mostly overshadowed by what was happening outside at the lobby or, rather, what was not happening (see accompanying analysis), but Members were unfazed at Question Time since the cameras were rolling anyway.

Khairy Jamaluddin (BNRembau), fresh from his scrape the day before, rose on a question of corruption to rail against the Selangor government.

“Lord Acton said power corrupts, and absolute power corrupts absolutely,” he began. “My question is: What is the result of the Anti-Corruption Agency’s (ACA) investigation into the corruption scandal involving the Selangor Menteri Besar? “Is this good governance? And what makes matters worse is the fact that the officer being investigated was suspended for two months yesterday, and has since resigned because he has no faith in the Menteri Besar.” Amidst thumping on the government benches, the words “ECM Libra” and “Avenue Capital ” issued from somewhere in the vicinity of Datuk Ibrahim Ali (Ind-Pasir Mas) and rang throughout the House.

(In 2005, Khairy was involved in a controversial merger of financial houses ECM Libra Capital Bhd and Avenue Capital Resources Bhd a government- linked company - but was cleared of any wrongdoing by the Public Accounts Committee on Aug 10 last year. On Aug 12, Khairy disposed of his interest in ECM Libra, but his name is still frequently mentioned in connection with that issue.) Selangor Menteri Besar Tan Sri Khalid Ibrahim (PKR-Bandar Tun Razak) was present in the House yesterday but responded to Khairy’s attack with a shrug, probably for the better since he has proven himself barely capable of stuttering his speeches in the House.

Khairy then had to give way to Datuk Seri Mohd Nazri Aziz (BN-Padang Rengas) who provided a perfunctory answer on behalf of the Prime Minister that proved to be of no account.

Things livened up considerably, however, when Khalid Abd Samad (Pas-Shah Alam) rose on a point of order after Question Time ended.

Referring to his speech the previous day, in which Khalid said Petronas was being subsidised by the people, the first term parliamentarian reported that he had since been censured by Information Minister Datuk Ahmad Shabery Cheek (BNKemaman).

“The minister says that I made a traitorous statement.

In my speech yesterday (debating his brother’s motion on the price increases) it appears that my proposals were interpreted as an attempt to betray our national interests and to hand over our natural resources to foreign oil companies.

“This is a ‘tipuisme’ and ‘keliruisme’ (‘cheatism’ and ‘confusionism’).

‘Isms’ championed by the Barisan Nasional,” he declared, ridiculing the pseudo-intellectual habit of adding “isms” to every other word.

Barisan members, to their credit, began shouting wildly and matters went swiftly out of control despite Deputy Speaker Datuk Wan Junaidi Tuanku Ja’afar’s impassioned speech, just moments before, for better Parliamentary standards.

Once order resumed, the House settled to debate various sleep-inducing Bills (the most interesting one, dealing with revisions to judicial pensions, was postponed).

At lunch, however, MPs became disconcerted by the lack of media attention given to them outside the chamber. A delegation of Kuala Lumpur MPs trotted up to the Media Centre, only to discover that the Press boycott included them as well.

Women, Family and Community Development Minister Datuk Dr Ng Yen Yen (BN-Raub) also sent her staff to the Press room to determine why no one was interested in her, and the Information Ministry was forced to postpone the launch of its website “to a date yet to be determined”. (U En-Ng )

Opposition pledges yet infulfilled

IPS (26/6/08): Even as the Anwar Ibrahim-led opposition Peoples Alliance coalition celebrates 100 days in office this week with huge rallies across the country, the public euphoria that brought them into power is beginning to cool off as people tighten their belts in the face of a slowing economy and escalating cost of living. Demands are rising for the opposition to implement their pledges.

It is clear now that it was easy to make election pledges, but next to impossible to fulfil some of them, especially the promise to lower the price of petrol to pre-2004 levels --world price then was about 20 dollars a barrel. The price of oil is now hitting 150 dollars a barrel.

In 2004, pump prices in Malaysia were under RM0.92, but today the price is RM2.70 and set to rise to RM3.20 by yearend.

"I cannot understand how Mr. Anwar is going to lower pump prices when world price is set to cross 200 dollars by year end," said a University of Malaya economist who declined to be identified, for fear of repercussions. "I think he has to tell his legions of supporters soon that petrol prices will only rise and not drop because the commodity is limited but usage is increasing," the economist told IPS.

For the opposition -- which captured five states and won 82 of the 222- seats -- the issue is pressing.

"As the opposition we promised the sky to win but as the government now we have great difficulty to deliver because we don’t have the power, our power to effect change is limited," opposition lawmaker Tian Chua told IPS. "But we are doing our best and the people understand it... they are with us," he said.

Many are still in a state of shock having been transformed overnight from "street fighters" battling police to lawmakers. The size of the victory and the suddenness of the transformation took everybody by surprise.

Voters who believed the opposition rhetoric and voted for change to see their lives transformed for the better are increasingly unhappy that change is slow to arrive.

"We want an end to corruption, we want accountability and transparency, we want redistribution of wealth and we want to see equality for all races," said R. S. Thanenthiran, national co-coordinator of the Makkal Sakthi or People Power movement that helped to bring the disparate opposition into power. "The era of blaming the previous governments for all the ills in the country is over and people want the new leaders to deliver," he said. "But they are still trapped in the old mentality," he told IPS in an interview. "They are the government now and they have to deliver."

A key opposition challenge is how to satisfy rising expectations which are fuelled by opposition rhetoric and rising cost of living -- on Jun. 5 there was a 41 percent hike in petrol and 61 percent hike in diesel prices.

Before the fuel hike the country’s poverty rate -- calculated by a household income of RM800 -- was 3.7 percent of the population, or 27 million people. After the fuel hike, and resulting massive jump in cost of living, the government is proposing to a new "lower income" category who earn RM2,000 and below. Nearly 25 percent of the population will fall under this new category of "low income earners".

The new definition covers only expenses for food, clothes, rental, utilities, transport, communication, health and education, former banker turned government minister for special functions, Amirsham Aziz told parliament on Jun. 24.

"Many among the former middle class are now falling into the lower income category and they are fearful and looking to the opposition political parties for deliverance," said S. Sivananthan, a senior official with the Malaysian Trade Union Congress, an umbrella body for private sector unions. "Clearly the former boom years are turning into lean years and people are angry at the sudden lost of status," he said.

The opposition Peoples Alliance is made up of three disparate political parties and has yet to formulate a single, holistic agenda to raise wages and household income and redistribute national wealth -- the key demands of the people.

Instead the former opposition is resorting to distributing sugar, rice and cooking oil to the poor and so doing are fuelling higher expectations for more handouts. "A comprehensive and workable scheme of measure to beat inflation and raise income is not in place yet," Sivananthan told IPS. "Populist measures like free rice are temporary measures and will raise expectation without solving the root cause which is low wages."

The difference between the three political parties that make up the Peoples Alliance is also a contributing factor in the failure to offer a comprehensive common agenda. While PAS, a Muslim fundamentalist party, wants a greater role for Sharia in the five opposition ruled states, the secular, Chinese-based Democratic Action Party supports defending the secular constitution and stopping the advance of Islam in a multi-ethnic secular society. Anwar and his Peoples Justice Party -- Malay-led but nominally secular -- is left sandwiched between the two feuding foes and drained by the constant need to keep the peace.

Increasingly public attitude toward Anwar is unfriendly, seeing him as pre- occupied more with grabbing state power by toppling Prime Minister Abdullah Badawi and less on alleviating the real problems the masses face. In fact, Anwar, who controls 82 seats in parliament, is preoccupied with secret negotiations to persuade government backbenchers to defect to his side. If he can get 30 lawmakers to defect he says he can topple Abdullah and form the next government without facing the voters for a fresh mandate.

Many of his own colleagues are openly against "buying" political opponents to make up the numbers because that may cause national instability, and put the Peoples Alliance at the mercy of the defectors whose loyalties will always be questioned. "It is also unethical… we should work at representing the people in parliament, act as an efficient check and balance on the federal government and go for a new mandate," said veteran opposition lawmaker Karpal Singh. "I am against using defectors to topple the government," he told IPS.

Many lawmakers also feel the future of the Peoples Alliance lies in addressing fundamental problems, and on populist measures like distributing food and cooking oil. Nevertheless the opposition victory has given the people fresh hopes that the new government is for them, and in their interest will be not hijacked by the rich and powerful.

After an initial huge jump in expectations and optimism the mood is now "cautious but optimistic" for the Peoples Alliance, partially because people still have grievances with the former National Front governments and their arrogant ways. But, experts warn, these are still the first 100 days and public mood could change dramatically unless the former opposition now in government put aside their differences, abandon populist measures and come together to tackle the real issues - which are poverty, low wages, rising cost of living and lack of social mobility (Baradan Kuppusamy).

More cracks in Abdullah's crumbling facade

Asia Times (26/6/08): These are trying times for Malaysian Prime Minister Abdullah Badawi, who after a sub-par showing in the March general elections now faces opposition both from inside and outside his Barisan Nasional (BN) ruling coalition.

Many political analysts speculate his administration will not last the year as the opposition Pakatan Rakyat alliance ramps up its efforts to either poach parliamentarians from the BN into its camp or secure a no-confidence vote in parliament.

The latest blow to coalition unity came on June 18, when two parliamentarians from the Sabah Progressive Party (SPP), a small coalition member from the north Borneo state of Sabah, said they would support a planned no-confidence motion on June 23 against the prime minister. Such a no-confidence motion would have required advance notice and in the end, no vote was put to the house.

But another opportunity arose the same day when a politically sensitive vote on a recent government-ordered reduction in fuel price subsidies, which resulted in a 41% hike in pump prices, was put to parliament. Ruling coalition officials had been on tenterhooks in the run-up to the vote and heaved a sigh of relief when it was passed with a 129-78 majority.

Nonetheless, 11 BN parliamentarians failed to show up for the crucial vote, among them the two disaffected SPP parliamentarians. A report on the SPP's website on the same day said that, since June 18, its leaders had been advised by "friendly parties" not to underestimate "the risky consequences and likely threats" to the party and its leaders.

The legislative endorsement for Abdullah's fuel price hikes has not dampened speculation that his government could yet face a vote of no confidence if, in the coming months, enough members of parliament defect to the opposition Pakatan Rakyat, or People's Alliance. At the same time, opposition leader Anwar Ibrahim has indicated that there are enough parliamentarians who would be willing to defect to his side by September 16, the date commemorating the formation of the Malaysian federation in 1963.

The ruling coalition currently has a 140-82 majority over the opposition alliance in terms of numbers of parliamentarians, while the opposition alliance is looking for at least 30 coalition members to defect in its bid to seize power. It is believed that Anwar is in particular targeting parliamentarians from the states of Sabah and Sarawak, which are rich in natural resources, including oil and timber. The ruling coalition includes 24 parliamentarians from Sabah and 30 from Sarawak.

Opposition leaders are also believed to be courting disgruntled members of Abdullah's United Malays National Organization (UMNO), which currently has 79 seats in parliament and Anwar was formerly a member.

Many in Sabah and neighboring Sarawak feel aggrieved by what they see as the marginalization of their states in the Malaysian federation. The two entities, along with Singapore and Malaya, merged to form Malaysia in 1963, though Singapore left the federation two years later. Now, Sabah and Sarawak are widely viewed as just two among the federation's 13 states, even though they were previously granted special administrative concessions in recognition of their distinct character.

Apart from the disgruntled Sabah and Sarawak parliamentarians, Abdullah also has to contend with a rival within UMNO, Tengku Razaleigh Hamzah, who is bidding to challenge him for the party presidency in December. He also has to deal with the scathing pot-shots lobbed at him by his prime ministerial predecessor, Mahathir Mohamad, whose critical blog postings have received widespread attention.

Moreover, Abdullah has to lug the political baggage that his deputy, Najib Razak, brings along. On Tuesday, the parliamentary speaker rejected a motion by veteran opposition parliamentarian Lim Kit Siang to discuss the latest allegations surrounding the murder of a Mongolian woman, whose body was blown up with explosives in a remote area in 2006.

Popular blogger Raja Petra filed a written declaration in the high court last week alleging that Najib's wife and two others - an acting colonel and his wife - were at the scene on the night of the murder. A close associate of Najib's, Abdul Razak Baginda, and two police special operatives already stand accused in court in the ongoing murder trial. But Raja Petra's sensational allegations point to higher-ups who have not yet been brought to court.

Abdullah said he doesn't believe that either Najib or his wife were involved and has denied Raja Petra's allegation that he had received a written report from military intelligence over the murder. Najib, for his part, has denied that he and his wife were involved in the murder. "Everything that is written is a total lie and fabrication," he said on Wednesday. "It's total garbage."

Anwar in the wings

Meanwhile, various civil society groups and the youth wings of opposition parties are planning a massive protest against the oil price hike on July 5, when organizers hope - somewhat ambitiously - to gather a million aggrieved Malaysians in the heart of the capital Kuala Lumpur. Government crackdowns on street protests staged by aggrieved Hindu groups last year were one factor in UMNO's disappointing electoral performance in March, analysts have said.

All the while, Anwar Ibrahim lies in wait for the opportune moment to make one final push to seize power for the opposition alliance. In that connection, all eyes are focused on what happens next in Sabah. Through its actions last week and its defiance of the ruling coalition, SAPP has tapped into a current of discontent after having toed the party line for years.

The party sees the current moment as a window of opportunity to achieve greater autonomy for Sabah, which despite its considerable oil resources only receives 5% in royalties from the national government. It is a perennial source of political discontent in the state, which has large pockets of poverty in its interior areas, and the small party now seems keen to renegotiate those terms for its future political support. Anwar has already promised the oil-producing states that he would raise their royalty to 20%.

A recent report on the SAPP's official website said, "The momentum for us to recover our autonomy, get 20% oil royalties and return of Labuan [an island off Sabah now regarded as a federal territory] would be lost. Unfair federal laws, excessive taxes and structural imbalances in the economy will remain entrenched. Sabah will remain the poorest state subservient to the central leadership. Labuan bridge, poverty eradication and rural development will remain elusive. Racial politics and wasteful monopolies will continue as usual."

Abdullah has tried to cajole the Sabahans by scrapping the Federal Development Department - an intermediary for federal funds allocated to the state - and with the appointment of a local Sabahan as the vice chancellor of the University Malaysia Sabah. His government has also set up a cabinet committee to look into the large number of illegal immigrants - a major source of discontentment among Sabahans. Najib has said that the government will soon launch a major operation against illegal immigrants.

But those moves are likely to be too little too late for many Sabahans to maintain their political support to the BN. As the political temperature rises, Abdullah has also bid to soften the blow caused by the removal of oil subsidies.

For instance, the government has started to pay out cash rebates amounting to 625 ringgit (US$192) to each car owner across the country. And in an apparent nod to the call for more political openness, his administration has allowed the opposition Harakah newspaper, run by the Islamic Party, PAS, to publish twice a week - its original frequency - instead of once a fortnight as was the case until now.

But that was quickly forgotten this week as new administrative rules restricting reporters' access to the lobby of parliament provoked an angry reaction among mainstream media journalists, prompting them to boycott several press conferences held by politicians in parliament. And with higher oil prices hitting the livelihoods of all Malaysians, it seems unlikely the pressure on Abdullah - and the ruling coalition - will ease any time soon (Anil Netto).

A big aye for government

The Edge Daily (24/6/08): The much-anticipated drama on Barisan Nasional’s (BN) motion in parliament to endorse its efforts to restructure the fuel subsidy scheme and combat inflation fizzled out as the opposition failed to get any backbenchers from the ruling party to vote against the motion.

After a six-hour debate, the motion to support the steps taken by the government to ease the burden of the people as a result of the hike in fuel, food and commodity prices was passed via block voting. The government garnered support from 128 members of parliament (MPs) as opposed to the opposition’s 78 votes.

The opposition was hoping to garner support from some members of the ruling party to thwart the motion, which effectively would be deemd as a vote of no confidence against Prime Minister Datuk Seri Abdullah Ahmad Badawi.

The optimism of the opposition was sparked by the decision of a BN component party — Sabah Progressive Party (SAPP) — last week to move or support a motion of no-confidence against Abdullah in relation to the subsidies on fuel and food. Surprisingly, SAPP’s two MPs were conspiciously missing from the sitting yesterday.

In a related development, SAPP president Datuk Yong Teck Lee claimed that the duo were intimidated and hence could not attend the session. Earlier in the day, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad moved the motion, setting the stage for the long-drawn debate.

In a move to protest against the petrol price hike, opposition MPs, (from left) Chua Tian Chong (Batu-PKR), N Gobalakrishnan (Padang Serai-PKR), Zulkfili Nordin (Kulim Bandar Baharu-PKR) and Hee Loy Sian (PJ Selatan-PKR) cycle to parliament yesterday.

Among those who spoke were Penang Chief Minister Lim Guan Eng (Bagan-DAP), Khairy Jamaluddin (Rembau-BN) , Ibrahim Ali (Pasir Mas-Independent) and Khalid Samad (Shah Alam-PAS), who incidentally is the brother of Shahrir.

After hours of hearing the views from both sides, Deputy Speaker Ronald Kiandee asked the House to vote on the motion via voice.

At this juncture, Azmin Ali (Gombak-PKR) stood up to protest but was told to sit down.

Kiandee got the House to vote and declared the motion passed based on the strength of voice.

However, Azmin protested saying the process was unfair. He subsequently invoked Standing Order 46.6. By then Speaker Tan Sri Pandikar Amin had taken over the chair and allowed the call for bloc voting, which the BN won convincingly.

(Voting by voice is determined by the loudness of MPs’ voices while voting by bloc is determined via ballots with individual MPs casting their vote which is collected by designated leaders. Bloc voting is not a secret as each bloc leader would know how the individual MPs cast their vote.)

Although the bell was rung, there weren’t any MPs who ran into the hall as most were already seated. The notable absentees were the two SAPP MPs — Datuk Dr Chua Soon Bui (Tawau-BN) and Datuk Eric Enchin Majimbun (Sepanggar-BN) — Tan Sri Rafidah Aziz (Kuala Kangsar-BN), Tengku Azlan Sultan Abu Bakar (Jerantut-BN), Tiong Thai King (Lanang-BN), Datuk James Dawos Mamit (Mambong-BN), Federal Territory Minister Datuk Zulhasnan Rafique (Setiawangsa -BN), Raime Unggi (Tenom-BN), Foreign Minister Datuk Seri Rais Yatim (Jelebu-BN), Datuk Seri Mohd Radzi Sheikh Ahmad (Kangar-BN), Minister in Prime Minister’s Department Datuk Ahmad Zahid Hamidi (Bagan Datuk-BN), Nurul Izzah Anwar (Pantai-PKR), Chow Kon Yeow (Tanjong-DAP), Gobind Singh Deo (Puchong-DAP) and another unidentified Opposition MP.

Earlier, Shahrir had tabled the motion in accordance to Standing Order 27(3) where he had explained the oil subsidy restructuring purposes and the various measures, such as rebates for cars and motorcycles that the government had taken to ease the people’s burden after the 41% and 63% increase in petrol and diesel prices, respectively.

The Opposition MPs took the government to task for not sharing Petronas’ wealth with the people. Lim reiterated his call for Petronas to give each poor household RM6,000, which would amount to RM30 billion.

“The money given to the people would result in fiscal stimulus effect as they would spend the money locally and help generate local economy,” said Lim who also continued to question the gas subsidy given to the independent power producers (IPP).

Khairy said the country faces the twin crises of restructuring of economic base and allocation of scarce resources.

He and Azmin traded barbs when he (Khairy) claimed that some of Petronas’ decisions were made while PKR’s de-facto leader Datuk Seri Anwar Ibrahim was in the Cabinet.

Khairy also defended Petronas’ executives using private jet to travel to its operations overseas. Earlier in the debate, Lim had questioned the need for Petronas to own a private jet when it should instead fly on MAS.

“Petronas will use MAS if it has flights to Sudan and Khazakstan,” said Khairy.

Ibrahim (Pasir Mas-Ind) brought up the issue of the connection between ECM-Libra and Pos Malaysia and whether Pos Malaysia stood to gain RM6 for every RM625 rebate for car disbursed.

Khalid (Shah Alam-PAS) said the motion was merely an academic exercise since the government had gone ahead to raise fuel prices without any consultation with MPs from both sides.

In winding up, Shahrir said the gas subsidy cost was part of the agreement that Tenaga Nasional Bhd would bear the costs instead of the IPPs.

It gave RM56.8 billion to the federal government while the states received RM4.7 billion in royalty. Shahrir also said Petronas’ output in 2007 was 661,000 barrels per day (bpd), of which 305,000 bpd were exported.

He said 36.6% of Petronas’ revenue comes from its overseas operations.

Shahrir also clarified that Petronas does not own any private jet but leases one when needed.

On the issue regarding Pos Malaysia, he said: “I asked the Second Finance Minister and he said Pos Malaysia was paid according to actual costs. It has already explained to the Public Accounts Committee (PAC) that during the restructuring of Avenue Capital and its connection with ECM-Libra, Pos Malaysia has gone on to become a GLC (government-linked company).”

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.

Shahrir tables motion on inflation

NST (23/6/08): Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad has completed tabling a motion on inflation and the House is currently debating it.

At lunch time, two members - Razali Ibrahim (BN-Muar) and Lim Guan Eng (DAP- Bagan) - had finished debating the motion while Datuk Hadi Awang (PAS-Marang) was debating midway when the House adjourned for lunch.

Razali said the increase at the pump prices could not be avoided and noted that the government had put in place several measures to help fight inflation.

"What is important now is that the effort is implemented properly. Every step must be taken to stop abuse," he said of the new subsidy plans.

Lim Guan Eng, who is also Penang Chief Minister, said Petronas should disburse RM6,000 to families which earned less than RM6,000 a month.

"This will make more sense than the current cash payout to motorists," he declared.

He called on the government to slash gas subsidies to the independent power producers (IPP) which he said were raking in huge profits despite the hike in global oil prices.

The House will resume debating at 2.30pm and is expected to vote either by voice or division, depending on the Speaker of the House.

Prime Minister Datuk Seri Abdullah Ahmad Badawi and his deputy Datuk Seri Najib Razak were also present in the House.

PAS calls for a special parliament session on fuel hike

The Star (9/6/08): PAS handed over a memorandum addressed to the Dewan Rakyat Speaker requesting for a special parliament session to debate the fuel price hike and its effects on the people.

PAS youth chief and chief whip Salahuddin Ayub said the party hoped that the Speaker Tan Sri Pandikar Amin Mulia would consider the request and grant one or two days for the session.

"For the sake of the rakyat, we hope that the Speaker would call for the special session early next week," he said, adding that there would be a peaceful walk from Kampung Baru to KLCC on June 13 in protest against the price hike.

"The steep increase shocked the people because it was the first time petrol price increased by 78 sen a litre and diesel increased by RM1 a litre," he said.

Although fuel price has touched US$135 (RM444) a barrel, it should not be an excuse to increase the price up to 41% because Malaysia is an oil-producing country, he said.

The Government announced the price hike last Wednesday following a cut in fuel subsidy, increasing the price of petrol from RM1.92 per litre to RM2.70 and diesel from RM1.58 per litre to RM2.58.

Salahuddin handed the memorandum to the Parliament administrator Datuk Kamaruddin Mohamed Baria who received it on behalf of Pandikar Amin.

The memorandum was faxed to Pandikar Amin at 12.15pm, he said.

"The Speaker will decide whether there would be a special session," he added.

Govt only saved RM1.4 bln from petrol price hike in 2006, says PM

Bernama (27/5/08): Prime Minister Datuk Seri Abdullah Ahmad Badawi said the real subsidy savings for the Government was RM1.4 billion following the petrol, diesel and Liquefied Petroleum Gas price increase on Feb 28, 2006.

Although the price of petrol and diesel was increased by 30 sen per litre and LPG by 30 sen per kg on Feb 28, 2006, following the cut on subsidy cost, the estimated savings of RM4.4 billion as announced by the government was based on the price of world crude oil being US$61 per barrel at that time.

"However, as the price of crude oil continued to climb for several months hitting US$74 per barrel, the actual savings as at December 2006 was reduced to only RM1.4 billion," he said at the Dewan Rakyat sitting here Tuesday.

The actual savings of RM1.4 billion was based on a crude oil price of US$74 per barrel.

Abdullah said this in his written reply to a question from Salahuddin Ayub (Pas-Kubang Kerian) on the total amount of money spent from the savings of RM4.4 billion from the oil subsidy cut which was meant to be used for improving public transportation services.

Abdullah, who is also Finance Minister said the savings were channelled in stages into the National Public Transportation Trust Fund (KWAPA) which was set up in May 15, 2006.

He said among other objectives, KWAPA was established to upgrade the integrated public transportation system in the country as well as improve the quality of public transport especially in terms of coverage and frequency of services.

"A total of RM550 million has already been channelled into KWAPA and RM498.77 million have been spent and identified for expenses related to improving the public transportation system.

"The remaining savings will be channelled into KWAPA in 2009," Abdullah said.

He said the total subsidy borne by the government for petrol, diesel and LPG from 2000 till 2007 was RM37.4 billion.

For 2006, the amount of subsidy for petrol, diesel and LPG was RM7.3 billion while for last year it was RM8.7 billion and the projected amount for this year is RM18.31 billion based on a crude oil price of US$105 per barrel, he said.

"This amount will go up based on the world price of oil which has continued to rise, and is currently at US$130 per barrel," Abdullah said.

He also said the government would continue to look into the welfare of the people and on ways to reduce their burden amid the increasing price of oil.

Motion on oil royalty rejected

Opposition disturbs Khairy's debate

Bernama (12/5/08): Realising that the opposition members in parliament were trying to disrupt his debate on the royal address, Rembau MP Khairy Jamaluddin refused to make way.

This riled up some of the lawmakers and the atmosphere got even more heated up when the government backbencher touched on the oil price increase and linked it to the political agenda of the opposition which he said had played on the issue to win votes in the March 8 general election.

Khairy was debating on the motion of thanks for the speech by the Yang di-Pertuan Agong at the opening of parliament's 12th session recently.

He also said that the Parti Keadilan Rakyat (PKR) adviser (Datuk Seri Anwar Ibrahim) had lied to the people when he constantly boasted and reminded the people that when he was Finance Minister, there was no oil price hike.

"He forgot to inform that when he was Finance Minister, the world price for crude oil was only US$12 to US$26 a barrel. Now the price has exceeded US$120 a barrel. So what was so difficult during his time?"

Khairy said he refused to allow the other MPs to interrupt his speech because of the limited time given to speak.

This caused Karpal Singh (DAP-Bukit Gelugor) and some of the other lawmakers to refer to Section 31 (b) of the parliament Standing Order on the right of parliamentarians to give clarification, 36(4) on using disrespectful language and 36(10) on using words that could arouse anger and racial tension.

Zulkifli Noordin (PKR-Kulim-Bandar Baharu) stood up and said: "If (you are) scared, then don't be an MP. Might as well as just switch on the tape (recorder)."

Khairy had earlier referred to the PKR abbreviation as Projek Khinzir Raksasa (Mammoth Pig Project) which prompted some of the lawmakers, including N. Gobalakrishnan (PKR-Padang Serai) and Saifuddin Nasution Ismail (PKR-Machang), to stand up to seek clarification.

Mahfuz Omar (Pas-Pokok Sena) then suggested that Khairy read his speech to Kemas kindergarten children if he did not wish to be interrupted before saying that PBN stood for Projek Babi Nasional (National Pig Project), drawing laughter in the House.

Deputy Dewan Rakyat Speaker Datuk Ronald Kiandee appealed for calm and said that Khairy did not go against the Standing Order and could continue with the debate.

Palm oil prices to stay between RM3,500 and RM3,600 in short term, says Chin

Bernama (8/5/08): Palm oil prices are expected to stay between RM3,500 and RM3,600 a tonne in the short term on strong demand and the shortage of vegetable oils worldwide, said Plantation Industries and Commodities Minister, Datuk Peter Chin Fah Kui.

"In the long term, they are expected to stay above RM3,600 a tonne but this will depend on the crude oil price," he said at a question-and-answer session at the Dewan Rakyat here Thursday.

Crude oil price touched a record US$123 a tonne yesterday on fears of supply shortage.

Chin said this in reply to a question by Datuk Abu Bakar Taib (BN-Langkawi) on whether the palm oil prices would be stable in the long and short term and whether the government would boost the cultivation of the crop and the incentives to new planters.

"The government is encouraging the cultivation of palm oil in areas which are suitable and will adopt sustainable agricultural practice," he said.

Chin said the government has offered incentives to those involved in the cultivation of palm oil, especially to smallholders to replant or plant new crops.

He said Malaysia has also teamed up with Indonesia to counter anti-palm oil propaganda among the Western non-governmental organisations (NGOs).

"Malaysia and Indonesia produce about 85 percent of the world's palm oil.

"The NGOs in the West purposely launch the campaigns to tarnish to good name of the product even though they know it's not true. The palm oil production in Malaysia is sustainable," he said.

He said the high demand for biodiesel could influence the price of palm oil in the country.

Chin said this in reply to a supplementary question by Mahfuz Omar (PAS-Pokok Sena) on whether the worldwide preference for biodiesel has affected the local palm oil prices and whether government would set the proportion for use as biodiesel and for food.

"Of the 16 million metric tonnes of palm oil output, six million will be used for biodiesel and the rest for food," he said.