The diesel subsidy will first be rationalised in the peninsula. The implementation in Sabah and Sarawak will happen later. Almost all families in Sabah and Sarawak use diesel for transportation daily. Hence, we will postpone its implementation there.
— Datuk Seri Anwar Ibrahim
PRIME Minister Datuk Seri Anwar Ibrahim and the federal government found themselves at the receiving end following Putrajaya’s move to rationalise the diesel subsidy.
Malaysians now have to contend with a 50 per cent hike in diesel fuel prices from RM2.15 to RM3.35 and undoubtedly, they are already feeling the pinch.
There might be those who are shortsighted enough to argue why someone from Sarawak would even bother to talk about the impact of the subsidy removal for diesel.
This is because Sarawak and Sabah are exempt from the price hike and the subsidy has been retained.
But then again, that is now how the economy works — just because the subsidy was maintained for the two regions in Borneo does not mean the people are spared the impact from the looming cost transfer to customers.
Several businesses in the construction and logistics sectors have taken the opportunity to jack up prices to the dismay of Malaysians who have no choice but to begrudgingly accept.
Putrajaya, heeding public complaints, has swiftly issued a warning to businesses, urging them not to pass the buck to the customers.
But then again, what are the control mechanisms that can avoid this? Just because the government tells them not to does not mean they will obey it.
This has happened before when the Pakatan Harapan (PH) federal government, reintroduced the Sales and Service Tax (SST) to replace the Goods and Services Tax (GST) which was part of its campaign promise.
It rode hard on the anti-GST wave prior to the 14th general election (GE14), using it as a stick to beat the then Barisan Nasional (BN) government.
In the end, not only did it fail to reduce the price of goods, SST sparked a wave of profiteering by businesses causing the prices of goods to skyrocket. That was a slap in the face to the people.
There might be another slap in the face not only to the people but also to those in power.
I like to think that there are segments of Malaysians who are practical and pragmatic enough to understand that the rising fuel subsidy bill is untenable for the long term.
Subsidy cuts are inevitable and subsidies are not carved in stone but a competent administration has to be able to manage the subsidy cuts to avoid leaving the people high and dry.
As it is, the prices of goods are at an all-time high and the fight by the government to curb sudden price hikes will be an uphill battle.
This is the new reality that Malaysians are dealing with and it is something that they have to accept.
But the thing that might leave a bitter taste in the mouth for Malaysians is that the political parties that rode on the fuel subsidy issue previously, campaigning for lower fuel prices have essentially disappeared in the past few weeks.
PH, which fully leveraged and politicised the fuel subsidy removal during the tenure of former Prime Minister Datuk Seri Najib Razak, has remained silent, unable to provide answers for the questions that are asked.
Economy Minister Rafizi Ramli now only appears in troll postings by netizens who are keen to remind the PKR man of his past promises.
“Kalau subsidi dihapuskan, harga minyak naik, jangan cari saya, padan muka korang (if the fuel subsidy is removed and the fuel price rises, don’t look for me, serves you right)” was among the viral soundbites from an old video of Rafizi’s speech.
This was probably when the Economy Minister was campaigning against then BN government’s subsidy removal decision.
Similarly, the people too are keen to remind Anwar of his past promise.
Old articles of Anwar from two years ago, saying fuel prices were not lowered during PH’s previous tenure as federal government because he was not prime minister and implying had he been the nation’s top leader, the people could enjoy cheaper fuel, have resurfaced.
Both are now either combative, unable to acknowledge their false promises or remained silent entirely on the issue.
That brings us to the discussion today. I think the political parties in government which leveraged on the fuel subsidy issue have to come out and own up to their inability to fulfill their promise.
Both PMX and Rafizi have to be honest and forthcoming and say something like: “Dear Malaysians, I realise that we have misled you before when we said we will lower fuel prices, but the economic situation has made this untenable.”
I think the people can take it. Some amount of self-reflection and self-realisation would be refreshing.
The issue now is not about the diesel rationalisation but rather how PH and its leaders have completely become unrecognisable when in federal government.
This view is not something that the people form overnight but from the multitude of issues affecting Putrajaya starting from them abandoning the principles of good governance and transparency.
Their handling of a certain government leader’s court cases and a certain former prime minister’s addendum decree comes to mind.
Second is their treatment to opposing views, a complete turn from when they were opposition and campaigned to support a free and fair press. The ‘radio car’ controversy is a testament to this.
Third and most recently is their handling of nepotism accusations when a certain minister’s spouse apparently landed a huge contract through direct negotiations.
The fourth is the fuel subsidy issue. These are just several examples of Pakatan being tone-deaf particularly to those who support it not too long ago.
“Power tends to corrupt and absolute power corrupts absolutely,” was a quote from British historian Lord Acton.
This is what is happening now. But, against the wave of condemnation by the people, the leaders in government, in Pakatan, Anwar and Rafizi have to come clean and own up to their failure to walk the talk.
It might lose them votes in the next election but then again, we are talking about whether this government can even stave off attacks and survive the remainder of their term with the way things are going.
The views expressed here are those of the columnist and do not necessarily represent the views of New Sarawak Tribune.
