Saturday, June 14, 2008

Oil "subsidy" is clearly Bull.....!

What subsidy? No subsidy lah

Ganesh | Jun 13, 08 4:16pm
There is no such thing as subsidy for the oil that is produced in Malaysia. The term ‘subsidy’ has been royally used left, right and centre but no one is really sitting down and thinking hard and asking themselves, what is there to subsidise? Who is paying whom?


  1. There is no such thing as subsidy for the oil that is produced in Malaysia. The term ‘subsidy’ has been royally used left, right and centre but no one is really sitting down and thinking hard and asking themselves, what is there to subsidise? Who is paying whom?

    In actual fact, the hike in petrol price in Malaysia has nothing to do with a subsidy because we produce our own oil. An analogy - if you produce your own rambutans in your backyard, you are free to enjoy your own fruits. How can you tell people you are subsidising your rambutans or eating it at a subsidised rate?

    In actual fact, there is no subsidy at all. It is called opportunity cost. Dr Mahathir Mohamad, being the Petronas Adviser and probably the only person who really knows the accounts, production and profit of Petronas, states that Malaysia produces 650,000 barrels a day of crude oil.

    A total of 400,000 is used for local consumption in Malaysia (ie, the petrol we use), leaving 250,000 barrels to be exported. He further claims that these 250,000 barrels alone produced daily will bring Petronas about RM27 billion profit annually.

    And this is assuming global oil price is US$130. If it goes up to US$200, you can imagine how much Petronas will make. And mind you, this is just the exported portion, in other words, this is just the excess 250,000 barrels exported alone.

    So, what subsidy is there? There is no subsidy at all. The 400,000 barrels used in Malaysia is produced by Malaysia in the first place. We are producing our own rambutan ie, oil. What all the drama is about is the fact that Petronas wants to sell all the 650,000 barrels it produces per day at the global market rates of US$130 per barrel.

    They want to reap even more profits. This is called opportunity cost and not subsidy. The 400,000 barrels per day consumed by Malaysians and sold at a cheaper rate can be sold at full market price to the global market.

    To put is clearly, ‘opportunity cost’ - which would be the revenue that is being lost because the oil is being sold locally at less than the global market price. In other words, extra revenue that could have been earned - has been lost.

    Unlike other oil producing countries which sell their oil cheaply to their rakyat, we on the other hand, are not bothered about our rakyat. Our petrol prices are either one of the highest or the highest in the world amongst all the oil-producing countries.

    Don't forget that we have one of the highest car prices in the world too, after Singapore. I think it is even higher than Singapore because the purchasing power of Singaporeans is much higher than Malaysians.

    So a S$60, 000 Honda City in Singapore is not a big deal to a Singaporean earning about three times a Malaysian earns.

    Please be reminded, too, that Petronas is government-owned so, again, what subsidy is there? Rakyat is not stupid lah; use proper terms, the correct term is ‘opportunity cost’. How are the young economics graduates from the local universities going to become good international economists when simple terms like ‘subsidy’ are confused as ‘opportunity cost’?

  2. M’sia needs holistic economic approach: Foong
    15th June, 2008 (From New Sabah Times)
    LIKAS: The New Economic Policy (NEP) is generally NOT seen as a fair solution to bring about prosperity and stability to the whole nation.

    It implied that some people get rich quicker than the others, said Foong Wai Fong, the main speaker at the ‘Malaysia’s Economy in Jeopardy’ forum organised by Progressive Institute of Public Policy Analysis (PIPPA) at Sabah Trade Centre here yesterday.

    The co-founder of Pahlawan Volunteers, a Malaysian voluntary and advocacy group, said this economic policy provided no equality of opportunity but value subtraction.

    She said it had somehow misguided the government and the development model to a point of value subtraction.

    Foong said what one could see in Malaysia now was equal to spending allocation.

    “We should look deeper to look into the development model and the government’s attitude. The world has changed and we need a holistic approach. The people will look at the government with high expectation.”

    Foong cited the natural gas vehicle (NGV) as an example of poor management. From 1984 to 1993, a 2,300-kilometre gas pipeline was laid up to Toh Anum but to date, there were only 96 NGV stations nationwide.

    “It is also surprising to note that the national car Proton is not made to run on gas Malaysia has more gas reserve than oil.

    “The price of natural gas at RM0.68 per litre is far cheaper compared to petrol which is now RM2.70 per litre,” she said.

    Foong also said Malaysia as an oil producing country would surely be able to reduce the burden on the people if the revenue from its global sales of oil was invested for domestic capacity building.

    The country’s monopoly attitude, she added, was also distorting the market and the economy and Beras Nasional or Bernas was a clear example of monopoly as it had the sole authority to import rice, including fragrant rice.

    “I made a study on paddy fields in Sekincan, Selangor regarding the possibility to plant fragrant rice locally and was so surprised to note that indeed it could be planted in Malaysia but the authorities did not permit it.

    “What is the point of Bernas importing fragrance rice from Thailand if it can be planted here. Probably, we can buy it at a cheaper price as compared to the current price of RM3.8 per kilogram,” she pointed out.

    She also said Malaysia’s economy was not prepared to deal with mega challenges such as the economic transition of the world, the global energy and food crisis, and global warming.

    On achieving a world class education system, she said there was a need for good masters and, of course, good students to have an excellent education system.

    “The authorities must build local expertise and bring in the best educators in the world to the country.

    “Our education seems to drop in rank. We can see that SPM and STPM graduates are allowed to enter the same university and, perhaps, take the same courses.

    “Something is not right here. Why should students move up to Form Six when they can gain admission to the university after completing SPM?,” she said.

    Meanwhile, one of the panellists, Palm Oil Industrial Cluster (POIC) chief executive officer Dr Pang Teck Wai said there would be a crisis if the oil price went up to US$200 per barrel.

    He said the state economy was driven very much by palm oil and sooner or later its price would also go up.

    “The cost of producing palm oil would certainly go up following the threefold increase in the price of fertiliser in the past few years,” he said.

  3. CEO dan Pengurusan tertinggi Petronas juga perlu bertanggungjawab dan mereka perlu letak jawatan agar individu yang berkebolehan seperti Datuk Idris (MAS) atau Datuk Tony F. (Airasia) dapat mengetuai Petronas. Kelemahan mereka dalam mengurus syarikat gergasi milik negara menyebabkan rakyat terpaksa menanggung kesan... Seluruh negara pengeluar minyak sedang menikmati keuntungan hasil daripada kenaikkan harga minyak dipasaran dunia tetapi Malaysia sebagai pengeksport minyak terpaksa meminta rakyat menanggungnya beban kenaikan harga tersebut!!!

  4. Rebates for car below 2000 cc is just bullshit only!

    Lets take a good look at my calculation.

    Last time I spent about RM250 odd per month on petrol. After the fuel hike of 42%, now I will have to spend RM105 more amounting to RM355 per month!

    Another thing, electricity rate increases 20% following the hike. Shit, now I have to pay another RM20 more, from RM100 to RM120.

    Now my bill will be RM125 more than previous totalling RM475 from previous RM350

    I am paying RM125 more per month(not including everything goes up after fuel hike).

    REbate RM625 per year comes up to RM52 per month. What a whopping difference!!!

    The government is simply cheating us! Petronas is profitting much more now, billions of billions more.

  5. Quoted from Malaysia Waves
    X also told me that if we keep the subsidy, we will bankrupt the country in the future.

    I replied that we want to prevent bankruptcy of the nation in the future, we bankrupt millions of families now? Is that the BN’s genius way of running the economy?
    X didn’t answer.

    My conversation with X actually confirms the mindset of Barisan Nasional when it comes to running the country’s finances: distribute all costs with among the people, distribute all profits among cronies

  6. Like to share this comment from New Sabah Times today...Food for thought ............
    "Fueling Heat
    16th June, 2008
    Earlier last week it was the near-doubling of rice prices. The next day, it was announced that fuel prices would also rise by a whopping 40%, with electricity bill to follow suit with at least a 20% increase soon.

    One, Two, Buckle My Shoes

    These several “heavyweight” price-hike measures came as figurative tsunami, further inundating the already beleaguered local economy. As such, the ensuing deafening and cacophonous voices of disbelief, of dissatisfaction, and of disillusion, were perhaps quite understandable.

    Frankly speaking, the spiral rise in fuel prices in many countries across the globe in tandem with the near ten-fold hikes in crude oil prices (nearly USD130 now!) was almost inevitable and in line with economic principles. And the decrease in government subsidies of various essential items was also also considered by many modern economists to be both enlightened and progressive economically. Furthermore, during these times of hardship, of scarce energy resources throughout the world, it is both lofty and necessary for the government and the people to work sincerely with each other in order to squeeze through this tight spot.

    The Wrath of the Disillusioned

    Why, then, did this round of fuel hikes incur the seemingly unquenchable wrath of the general populace, so much so that some of them were taking to the streets?

    I think the main reason lied in the observable but unenviable fact that the people’s attitude toward the government’s so-called explanation of “lowering fuel subsidy in order to save money” could at best be described as cynical, verging on disbelief.

    And perhaps we could not blame the people for their albeit belated critical mindset. Just imagine, the people had long been sick and tired of the rampant and pervasive corruption at various levels in this country. While they longed for a much-too-late resolve to tackle such insidious corrupt deeds, the official calls to “go all out” to “fight corruption” remained just that – calls!

    Pay for Your Pay?

    Indeed, when the authorities were meticulously explaining the public usage of the “saved” fuel subsidies, what popped up in the mind of the average folks were perhaps – and let us not stretch back too far – the notorious West Malaysian “30,000 ringgit becoming 3,000 ringgit” appropriation for much-needed school repair as revealed by no less than a then deputy minister (and now full federal minister); misused money meant for poverty eradication; various instances of “crony rescues”, etc., etc., to name but a few (too few!) Even those states with new governments were similarly not immune from allegations of corrupt practices.

    What the average folks were adamantly angered with was perhaps the question as to why they should fork money out of their pockets and purses to “reverse-subsidize” such shameful deeds. They were of the opinion that the public money “saved” from fuel subsidies would be wasted, or more colourfully, go to the dogs anyway!

    Towering Example

    No, the people are not stupid anymore, nor could they be easily fooled or manipulated like before. They can, for one thing, easily access the internet and find out that in almost all other nett petroleum exporting countries (the United States, for example, is not such a country, as it consumes more petroleum than it produces), fuel prices range from a token ten cents to slightly more than a ringgit or so. Our new fuel prices stand tall as a blisteringly shiny counter-example.

    Human nature dictates that if we belong to such a petroleum-exporting club, then why should the average folks be forced to purchase expensive fuel? I may or may not agree with these jealous sentiments, but they are there! The government must strive hard to strike a careful balance between the need to earn hard currencies by means of petroleum export, and the sustainable development of the local economy.

    Reserved Manner

    Talking about hard currency, it was perhaps both coincidental and ironic that on the day after the fuel-hike announcement, Bank Negara also brought forth what at first glance appeared to be good news, that our foreign reserve had reached a new height of over 400 billion ringgit.

    From an economist point of view, a rational and appropriate level of foreign reserve is needed for every country to “cushion” excessive local currency fluctuations and to service foreign debts. Nevertheless, as we gingerly step out of the incubus of the 1997 Asian Financial Crisis, with a nose-diving US dollar and correspondingly reasonable ringgit value, it is patently arguable as to whether stocking up a huge amount of foreign reserve for cushioning purpose is still the best course of economic policy-making.

    According to official analysis, this round of lowering of fuel subsidies would save the government only about 13.7 billion ringgit, not even one-thirtieth of our foreign reserve. Could we not perhaps adjust our foreign reserve slightly downward, and use the money for fuel emergency?

    Taking the Opportunity

    But what I worry the most is what I would call “opportunistic inflation” triggered by this round of fuel price hikes. Opportunistic inflaion occurs when the rise in goods is disproportionately high when compared to the rise in fuel costs. A prominent example would be such as what occurred during the last round of fuel hikes, when some of the roti canai prices more than doubled in response to a comparatively mild increase in fuel prices.

    If opportunistic inflation prolongs, then the latest inflation figure of 5% (just as I predicted a few months ago!) would have a hard time coming down again, with dire social and economic consequences!

    Drastic Reversal

    What then could be some relief measures for the hardships suffered by the average folks? For one, public transport systems must be strengthened for the convenience of those who can’t afford a car. But as long as this is not done, then the government must finally reverse its protectionist mentality and reduce by a huge proportion the excise tax for foreign vehicles which only added to the transport burden of those lower-income groups.

    What about alternative energy sources? Don’t even get me started… Have we ever prepared the umbrellas before rain comes?

    After witnessing the unenviable, sometimes horrendous sufferings in many a econmically mismanaged country, Ei Sun pleads for prudent economic considerations in public policy-making. He welcomes feedbacks and suggestions at"

  7. Belovered Yong Teck Lee.
    BN is no use to us Sabahan now. If you jump ship now ( which I believe no opportunity in the future)you will be remembered as Bapak who saves Sabahans. Although we are at different religion / believe I can say you make an outstanding impression that you are the future leader that we are looking for. If chinese Sabahan have Huguan Siou, no doubt. I say NO DOUBT you are the one. Tun Yong Teck Lee in becoming.

  8. Please note that a Malaysian has to pay the followings on top of expensive petrol. 1. Road tax 2. Toll charge which is equally expensive as cost of petrol. 3. High selling price of the car.
    Please note that a two litre Toyota Cambry is selling at RM 90 thousand in Thailand whereas a Malaysian has to pay RM 140 thousand for the same car. A Malaysian has to pay extra 50 thousand Ringgit. If you take RM 50 thousand divided by 625, the buyer had paid 80 years in advanced to government to pump petrol without any subsidy from government.
    Please note that Thailand is not an oil exporting country, the price of petrol is RM 3.50 per litre. The Thai does not pay high toll charges like a Malaysian. There is no road tax charge in Thailand. Imagine what type of quality life of a poor Malaysian compared to a Thai. There is no reason to increase the price of petrol because the extra tax on the new car is enough to compensate for the high cost of petrol. Thank you.

  9. yeah, there is no such things as oil subsidy, it is just some cover up. we pay the tax for our cars which amounts to RM20k. we have to buy 'expensive' cars and 'expensive' oil now. while in thailand, they buy 'expensive' oil but 'cheaper' cars. and in thailand, some of the toll plaza will be closed on 'special days' as a gratitude to the citizens. for us, the toll opens 24*7*365..even if they do not serve the purpose of reducing travelling time.

    and the interview with the ceo of the petronas, he does not sound convincing and at the same time, we should not blame him but the administration of the country for those heavy taxes.

    we got no rice?! i'm shocked by this because i worked in the same building as bernas and they 'giveaway' free rice for the security guards and staff.

    malaysia, country of draining their citizens blood. movie got blood diamond, we got blood money!!


  10. Oil subsidies? What subsidies?!

    Sounds more like rakyat subsidising the rich cronies to continue to squander off country resources and taxpayers's money to do what they wish, building white elephants aft white elephants!

    When is this gomen going to learn from 8 March 2008 political tsunami and stop the racist and corrupted politics and practices? Time for Sabahans and Sarawakians to give them a wake up call before too late. Time's up!

  11. I am not a Sabahan but a fellow Malaysian. Kudos for having the guts to raise your party's views on having no-confidence with our PM.

  12. First of all, allow me to state that I am TOTALLY NOT in favour of thr BN government. However, I am in agreement that the price of fuel be allowed to rise in tandem with global prices. This is in line with my own belief in the workings of a free market.

    Putting aside the reasons why the oil price is where it is today, it is necessary to equate any amount of fuel to a corresponding value. Then we equate that value to a quantity of another product. And then we compare the amount of fuel to another amount of a different product.

    Example, a litre of petrol was about RM2.00. This can buy, perhaps, 1 kg of rice. In the controlled ("subsidised") market, that is what the petrol is worth, ie 1 kg of rice. Let us say that we now raise the petrol price to free market value of say RM4.00/ltr. This is now worth say 2kg of rice in the free market. This means that if the petrol price is not raised, we would "feel" that we are using "1kg rice" equivalent for every litre of petrol, when in fact we are using 2kg of rice. This imbalance in terms of the value of the petrol versus other products will lead to an inefficient management and utilisation of our resources.

    Using the same examples, now let us say we have a budget of RM100 per month for rice and petrol. Under the old price, we would believe that we are consuming say 25ltr petrol (say RM50) and 25kg rice (say RM50). The real cost would actually be RM150 because 25ltrs petrol would actually cost RM100 if the same had been sold overseas. In otherwords, after buying 25ltrs petrol, we would have nothing left for rice, in real terms. And the majority of the public will not see it like this.

    Going back to the rambutans. If your garden can only produce 100kg of rambutans, and you know that you can swap that 100kg of rambutans for 200kg of pulasan. Would you eat all your rambutans or swap some of them for the very similar pulasan so that you have more fruit?

    While it is clear that the rise in prices is very painful for Malaysians, this is something we need to live with. This is something the Govt needs to deal with to enable us to live with it.

  13. The price set at petrol stations is the same whether at Petronas, Shell, Esso/Mobil,BHP, Caltex or other stations. So even if we disregard Petronas, subsidies are truly being paid aren't they?

  14. I have just been told by a friend in China that petrol price there is even cheaper than malaysia although they are IMPORTER of crude oil.

    as an oil producing country how can we be more expensive than them??

    so what is happening in Malaysia?? The BN government is making the rakyat suffering..

  15. SAPP really brave!! Support you always lets leave Barisan!!! Dun help government to cruel to us!! We want a government really can help us!! I will link SAPP blog to my blog too..

  16. Fuel price have being going up and up since Badawi become PM and I am sure this latest fuel price increase is not the last. Salary have not increase and the buying power is getting less and less compare with Singapore, Australia etc. Their salary are so much higher than our, hence the buying power is higher.

  17. Ketuanan Rakyat,

    Tak payah cerita pasal MAS dan Air Asia la brother. Kalau Gomen tak tolong dah lama tutup. Tapi sebab bukan Melayu yg manage, tak ramai org dengki. Kerajaan tolong tak ada org bising or appreciate. So nampka bagus. Kalau melayu jadi CEO, pertolongan Kerajaan dianggap bailout. Kalau melayu manage biasalah ramai dengki.

  18. I would not want to make this a debate…as this can get very technical….

    But if you understand the characteristic of crude oil then you would know that crude needs to be refined… And once refined it will produce a list of petroleum products (ie from bitumen, jet kero, mogas, gas, etc).. Depending on the crude characteristic then the better quality it is, the more petrol (or known as mogas) we get laa…

    The calculation is not as easy as you think it is….
    So, it does not mean we have 650,000 barrels crude oil we get 650,000 barrels of petrol…. It could be just 25% of a barrel of crude oil (depending on quality) refined will give us petrol products...
    Hence, the reason why PETRONAS imports PETROL (mogas) from Spore and other countries...We are buying it at market rate and selling it at a lost…..

    When your talking about production cost… that is only relevant to crude extracted from Malaysian shores……

    Yes…true we are a producing countries… but my dear, you are comparing our production which is on 650,000 barrels per day to countries (as listed in your mail) which are producing in the millions per day, on top of that they have excess of oil to be exported… there’s no need for them to import….

    We also need to strategise—PETRONAS acts as a business entity… you cant simple compare us to Saudi Arabia, for example…. Whose amount of oil in the country can last them for the next 156 years to come… while compared to Msia—our current reserve/ and the rate of production will only last another 17yrs…

    FYI, Our crude oil is of topnotch quality… hence, profit wise—we should sell at high market rate and refine the import ones (which true of lower grade)--- but did you know our Melaka refinery is also a complex refinery (lay man words very high tech) that it can extract/or mixed these lower cost crude and refine to produce high quality petrol (ours is one of the best rons being offered compared to the Asia pac market)…

    So, yah…its getting technical right??, conclusion, your calculations below is incorrect….but hope this explains….

    Before we debate further…. Just reading the media numbers is not good enough… to understanding the oil business and debate about it, one needs to go deep…..

    Ignorant is bliss….

  19. you are absolutely right my friend,all the subsidies went into the fxxking UMNO malays pockets.we the producers of oil,gas and timber,have to suffer ever since we agreed to form Malaysia.They never really care about us,the islanders because they think they have absolute power over us thanks to our own leaders who are only good at balls polishing.we should KO all sarawakian and sabahan politicians who align themselves with UMNO led BN.

  20. I heard a story about how Malaysia had a deal with US some time ago to sell oil to them at dirt-cheap prices... something like USD10 per barrel (ok maybe the price is a little far-fetched) in return for a loan from the US in the billions (during the 97 crisis I think?).

    The oil barrels work as repayment of sorts for the loan. So since this "deal" is already in place but done under table, our gov can't really reveal details in fear of being embarassed.

    So in actuality, we are not profitting from the skyrocketing oil prices bcoz our smart gov has set a ceiling price for oil sold to the US. Does anyone know if this story is true?

  21. YB Yong Teck Lee, please be more specific. Pass a non-confidence vote on UMNO as a partner in BN. It's not a BN-led government but an UMNO-led government that's pulling BN and the ENTIRE nation down!

    In addition to that, to all component parties of BN, do the same! If all of you combined can't EXPEL UMNO from BN, then it's time you left to join PR and do the right thing to save our country from turmoil.

    If you are thinking of forming another coalition or standing as an independent party, forget it, we don't have the time. Lend a hand to PR to put our country back on track NOW. We have to drop all our differences and work as a team to save the nation NOW..

    Watch this video:
    "Either we heal now as a team, or we will die as individuals. Inch by inch, play by play, till we are finished. We're in hell right now. Believe me. And we can stay here and get the shit kicked out of us; or we can fight our way back into the light. We can climb out of hell. One inch at a time."

    All members of BN political parties reading this, please pass this message to your leadership. We have no time to lose.

  22. Which party do you think will form the next government of Malaysia ?

    Express your feeling at

  23. SIGN THE DIRECTIVE to Malaysian MPs and ADUNs to push the government to build an efficient public transportation system ASAP.

    This is a very trying time, ONLY IN WORKING TOGETHER (political affiliations aside), we shall ALL survive. It is the Malaysians who make Malaysia. MALAYSIANS BOLEH!

    A gentle reminder: Please do not flame at the online petition as we’ll be submitting to the relevant authorities in due course. Flames will be deleted, positive and constructive comments and recommendations to your MP/ADUN are most welcomed.

    More ideas on how to push this campaign effectively, visit

  24. The voting system is a great lie. Test it...

  25. Just to add some fuel to the ongoing debate on 'petrol hike'... i heard sometimes ago from a Shell manager that Petronas automatically gets 50% of any oil or gas found in Malaysian territory regardless who the founding company is. This means if Shell or ExxonMobil finds oil in Malaysia, they have to 'surrender' 50% of their production to Petronas as a 'royalty' payment. Isn't this ridiculous? And they still says they are not producing enough oil(have to import konon) when other companies are producing for them FREE! And referring to an earlier comment that our reserve can last only for another 17 years. By all respect (the anonymous writer), are you saying that Petronas have stop all their exploration work? And only pumping oil from those current oilfield till it flattened out? for your information, there are oilfields discover every other day. Just ask any of your friends who work in oil exploration company. Malaysia has so many oilfield waiting to be discover and so many that has been discover but not yet officially declared. Bottomline, the statement saying our gas and oil reserve will only last another 17 years is politically 'bullsh*t'.
    I am against the Government for raising the petrol price without proper studies on its impact on citizens daily life and welfare.

  26. What the hell "Changing life style"!!! does he know what will impact? If we (Malaysian) really listen to him, change our life style. What do you think about market? Our Malaysia economic will drop? I am agree with not subsidy oil at all. The question is, are we be prepare for the changing. This really shock us, with the lousy public transport and Malaysia Currency keep on drop. How can Malaysian survive in this situation.
    As my thinking, goverment should bring us move forward not ask us move backward or stay at the situation.
    The stupid advertisement asking us to take motorbike instead using motorcar!! WHAT I see from this will be Malaysia going soon, and very soon will be sama Standard as Vietnam (current Vietnam coz Vietnam is develop very fast recently). I really not dare to think of Malaysia future. It will be all Malaysian nightmare, if we really listen "CHANGE OUT LIFE STYLE"

  27. YB YONG, If you are thinking of forming another coalition or standing as an independent party without PR, think about it, SAPP will be in history in next General election!

  28. i am just wondering how many SAPP leaders drive anything less than a luxury European car or a huge SUV. any SAPP leaders willing to be an example for the rakyat in driving modest, fuel efficient, environmentally-friendly automobiles? just curious...

  29. I am from Tawau. May i know how we can contact our Tawau 's MP Datuk Chua Soon Bui? She does not have email, blog, contact number, and her personal service centre for her constituency. How can rakyat contact her? We demand a MP that can always connect to the rakyat, but not only show up for events. We want to know what are her 'soalan' in the parliament and we want to know her progress. I strongly urge YB Chua Soon Bui to establish a service center, create an email, a public phone number to enable rakyat to propose their problems and issues to her. She is our representative and she needs to hear from us and deliver our messages in the parliament.

  30. Joe.
    Why is nobody ever thinking that Petronas could have forward-sold our crude oil for say USD 50-80 a barrel to Japan or USA for 10-20 years. That is why it is so difficult to open their books.This is a typical 'pajak'mentality of our UMNO leaders in Semenanjung.

  31. I am a Malaysian born and reside in the Peninsular of Malaya.

    May I join your party?

  32. Go ahead with the VOTE OF NO CONFIDENCE

  33. bold move for the vote of no confidence. I am sure you have the support of both Sabahans and Peninsular Malaysian.

    GO SAPP!!


  34. Come on!!!people... think!!!
    Rome wasnt build in a day...give the government u honestly believe things oil hike of such magnitude can actually be solve in the 3 months or so after election?!

    Furthermore, the government sure as h*ll know that the oil-hike would not serve the opposition in their goal and it is a clearly unpopular decision...
    If SAPP is in for the struggle of sabahan, then go be an independent body and fight for Sabahan's Right, not joining PR which dint even bothered much bout Sabah and Sarawak before 8th March. This is clearly a breach of Democracy whereby people who voted for SAPP candidate clearly was voting for the manifesto and party they represent. If you choose to be independent, well and good...
    If SAPP choose to join PR, then obviously u breach trust of people who voted for you for the party you represent.

    I urge that if the struggle as part of BN is no longer working, go independent, which is i believe an political ethical way of doing things.

  35. the rakyat should vote and demands what they want and deem right. majority voice will (should) get what they wanted and demanded. whether remain in BN, join PR or being independent party doesn't matter as long as the majority voices are served.

  36. its such a disgrace that the Malaysia govt has take Sabah for granted all these years..eventhough oil being drilled in labuan but still they talking about subsidized...this is totally ridiculous and 1 more issue is the illegal immigrant prob which never being solved all as sabahan will always behind your back Datuk

  37. Who is subsidizing who? In the first place there is no subsidy at all. How can one subsidize something which is not bought at world market price. Don't tell me Petronas has been selling fuel to the rakyat according to the world market price since 1974. Since the gov claimed it had been subsidizing petrol and diesel all this while, can I say now the Rakyat is paying the subsidy on the gov behalf???

  38. if corruption and wasteful spending is corrected, there should be NO PROBLEM sudsidizing the petrol, fuel, gas, rice, cooking oil, building of "Good road" more scholarship, better delilvery by government, dignified police force .....etc

  39. Our oil subsidy. The greatest cheat.

  40. i would say that this subsidy thing is clearly a scam.. it's their account they can fake it ...

    they can "claim" to be the heroes by subsidy the petrol .. and claiming that they couldn't afford..

    my guess is, they couldn't afford to be poor after buying this and that hence they need more money...

    stop sponsoring useless thing like f1 .it won't bring it any benefit..

  41. I would really wanna say that all component parties in Sabah should quit from BN for BN has been marginalizing every single one of u..the feds have never done anything to solve Sabah's problems!
    and 20% oil royalty is simply not enough! we produce part of the country's petrol! our development is simply slow! but we contributed to the wealth of the nation a lot! JUSTICE!

  42. We all know where all that oil money is going to and that is to the PM and all his corrupt cronies pockets! There is no logic that an oil producing country like Malaysia has to make it's own citizens pay ridiculous fuel prices when other oil producing countries like Saudi Arabia can sell petrol to it's citizens at a cheaper price.

  43. Oh my god, Arabians are suffering badly and their hardships are at unacceptable level because price of Oil is ever increasing, so the Arabian Government can no longer provide subsidies to everything as such, there is no more tax-free income in these Arabian countries!!!

    What a pathetic notion? Malaysia like those oil exporting nations, should be laughing all the way to the banks if the higher the price of oil rise, the bigger their smile should be BUT there is a catch..... The government of the day, speaking on behalf of the corporate owner(s) of the oil producing companies (Petronas) are saying to us that because of ever increasing oil prices, they are unable to provide anymore subsidies hence, the nation got to change their lifestyles whether you like it or not, the government can be considered technically and commercially bankrupt.....

    The government can only provide subsidies if the price of oil drops to USD10 per barrel, what the heck is the present administration talking about... why would we need subsidies if the price of oil dropped as low as USD10? Being a net oil exporting country, we cannot afford subsidies anymore because of high price of oil? What kind of economic lessons Abdullah and management were being taught? which universities are our country representatives attended?

    We really don't need another Einstein to teach us pure simple mathematic... it is a shame that Malaysia is now a laughing stock to other countries, being a net exporter of oil can't afford subsidies any longer, what a bullshit???

    Having oil in our own country is like having a goose that lays the golden egg but we were told that, yes we have oil, but we cannot afford to buy the feeds anymore..

    It's time to sack the present government and there is absolutely nothing wrong if we just change the govenment of the day now...

    I seriously think the chaotic is not caused by rakyat but by our selfish representatives. Make BN irrelevant now and ever!!! They are too arrogant and too corrupted...

    Awaken Rakyat!!

  44. It seems that Petronas sell our high grade crude oil and import those lower ones for local consumption. This way, they'll make money from the oil they sell and the imported oil after process will have to sell at market price. The government pay part of the price for the imported oil. THIS IS THEIR SO CALL SUBSIDY!

    They make money twice and yet the government still say subsidy. This is daylight robbing of the peoples' money.

  45. I can agree if fuel subsidy removed and let it on free market together with other items. So the issue of subsidy doesn’t arise at all. At the same time make the tax lower on goods similar to other countries. So people can buy their basic needs at a more reasonable price. Since the Gov make additional income from the removal of the subsidy, they should not tax on other items higher example cars, food stuff, etc. I think people in Brunai don’t have to pay the income tax and in Singapore their personal income tax is lower than us.

    The Gov think most “Malaysian” still school in “Sekolah Atap”. Or the Gov just pretend stupid. Our future children going to laugh at us one day because being such a dumb being bullied by the half passed six Gov. What’s the different between us and Myanmar?

    Profit from Petronas should be used for development and infrastructure, it is people’s and the country’s money not UMNO. Our infrastructure and public transport still far behind compare to better one’s in the region. The Gov should stop comparing with worst country in the region and start to compare with those better for improvement.

    Thank God we still live peacefully and tolerate with the Gov.

  46. Well done SAPP, GREAT SLAP to the half past six gomen.

    We Peninsular folks look you up! Go join PR, dont waste time on BN sucker. Look at Gerakan, MCA, MIC, typical BN Yesmen ... all irrelavant to general folks in Peninsular. PPP already got thrown out of the Parliament. Dont follow the suckers foot step! Disgrace to the RAKYAT!

  47. i would love to complete the sentence for the title. apparently not, i so scared ISA, "SOOOOOOO" scared.

    enough is enough, people had enough of the bull...i mean cow dunks....

    clearly they don't even know our suffering. i thanks SAPP for doing something about it. look forward to what SAPP will will do next

  48. Welldone SAPP, you made the right choice! Even pak lah from penang we also reject him. He is the most fucking stupid leader I ever meet. Firm with you decision. umno wont survive any more, dont worry they will take revenge on sabah.

  49. the term of "Subsidy" is booolsheeetzu...

  50. 1. Greenhouse gas emitted from petrol cause pollution to our environment. We should add tax to the petrol, same as what we did for gambling, wine and cigarette.
    2. Oil takes 40,000 years to be formed. And Malaysia government want to deplete it in 100 years (1940-2040). Unfair to the next generation. Please produce less oil.
    3. It takes double in term of cost to remove the side effect of greenhouse gas from petrol.
    4. The petrol subsidy mainly benefits the middle class citizens which own a car. Not fair to the poor who take bike and bus. Should abolish the subsidy system and improve our education, health and infrastructure.

    In conclusion, petrol in Malaysia hopefully can rise more than RM4. Thanks

  51. ofsdoSomething I received from email on "subsidy" analogy. How true

    The story about "subsidy"$B!D(B

    A man called Maha owns a farm which can produce 10 apples every day.
    He has 5 workers to operate the farm.
    Each of them eats 1 apple daily and it is enough to keep them operating the farm normally.
    The remaining 4 apples, the landlord sells them at RM10 each and he earns RM40.
    He uses the RM25 to improve the farm operation and facilities.
    He gives RM2.00 to each of his workers and he keeps the remaining RM5.00 as profit.
    Day by day, the farm is well developed and all of the 5 workers are happy with the money they can save.

    When Maha passed away and there is a new landlord, Abdul comes to continue the farm operation.
    He says to the workers:" We need to improve the farm quality and redefine our way of thinking.
    >From now on all of you only need to pay RM1.00 for each apple you eat.
    It is very cheap as the price is RM10 each outside the farm."
    The workers have no choice but to pay RM1.00 for the apple they eat daily.
    Their earning decrease from RM2.00 to RM1.00 per person.
    As usual, Abdul sells the 4 apples and he gets RM40.
    He uses RM25 for farm improvement and pays RM10 to his 5 workers.
    He gets RM5.00 as profit. On top of that, he gets another RM5.00 from the apples that he sells to his workers.
    In total, he gets RM10 as profit every day.

    Soon, the apple price increases to RM20 each.
    The new landlord gets a higher profit as he gets RM80 for the 4 apples he sells daily.
    Then, he decides to give the farming improvement contract to one of his close friend, Samy.
    Samy says:"Apple cost naik, improvement cost also misti naik."
    So, the farm improvement cost increases from RM25 to RM50.
    In actual, the improvement only cost RM30.
    The remaining RM20, Abdul and Samy share evenly among themselves.

    Let's calculate how much Abdul gets daily:

    RM10 (from farm improvement cost)
    RM20 (Net profit by selling 4 apples: [Gross profit, RM80] - [Improvement cost, RM50] - [Wages RM10] = RM20)
    RM5 (from selling apples to his workers)

    In total, Abdul gets RM35 daily compare to RM10 initially when he takes over the farm from Maha.
    His profit increases RM25 and the workers are still getting RM1.00 daily per person.
    The greedy Abdul does not want to stop there.
    One day, he says to his fellow workers:" You see ah, the current market price for one apple is RM20 and you are only paying RM1.
    See how lucky you are! I have to SUBSIDY RM19.00 for each of the apple you buy and total I need to SUBSIDY RM95.00.
    This will greatly burden the farm and we might get bankrupt if we continue like this.
    In order to avoid bankruptcy, I need to increase the apple price that you buy from RM1.00 to RM1.50 and I will bear the remaining RM18.50 per apple as my
    subsidy to you all. "
    So, greedy Abdul adds RM2.50 to his current profit and the number becomes RM37.50.

    After you have read the story, I am sure you have already understood the meaning of "SUBSIDY" given by the government.

    The RM95 subsidy never existed in the first place and so was the RM52 billion fuel subsidy generously "given" by the government

    Cutting fuel subsidy is actually just a reason to steal money from your pocket.
    Are you gonna stand there and let them rob you$B!)(B

  52. It is not because umno does not know how to use the right term, it is called "willful deceive" on all Malaysians, majority of "rakyat" can be easily conned by our self- claimed "Godmen".


  54. Rakyat Sabah adalah bodoh. Apa mau sokong parti luar. UMNO itu parti Semenanjung. Apa parti luar boleh jaga Sabah kah? Palui.. palui..

    Go Yong Teck Lee.. Rakyat Sabah mahu pemimpin seperti kamu yang memperjuangkan nasib orang Sabah. Sekarang ini, parti yang ada di Sabah, pemimpinnya hanya jilat dan cium pantat parti luar dan pemimpin luar asal keturunan mereka 7 keturunan kaya raya.

    Lihat setelah 51 tahun Sabah Merdeka dalam Malaysia apa ada? Rakyat makin miskin, tanah kena rompak, ladang kelapa sawit semua milik orang Semenanjung, hasil minyak kena rompak, rakyat Sabah menganggur jadi pelacur kena tipu kerja luar negeri, kerja kosong kerajaan semua dikuasai oleh orang Semenanjung, kuota UMS pun dipenuhi oleh orang Semenanjung, guru-guru pun asyik masuk muka orang semenanjung.

    Apa orang Sabah ini bodoh2 kah? Tiada kelulusan? Palui.. memang palui ini Rakyat Sabah.. Inilah namanya menang sorak tapi kampung tergadai.. padahal pakaian sendiri koyak rabak, telanjang bogel.. palui.. palui.. memang palui.. ini Rakyat Sabah!

  55. malaysian wrote:
    The problem was who will really do the action?Even 1 ~ 2 person really do action for peoples but still can't fight with majority opposites.I really can't saw the future at all.

    The PR has the support of the majority of Malaya people, both Malays and non-Malays. MCA, MIC, and Gerakan have all broken apart and all but ceased to exist. And UMNO is breaking apart also with Badawi on the way out and Mahathir telling UMNO mp’s to leave UMNO. Therefore, BN is no longer the majority in Malaya. It is only in Sabah and Sarawak where the mp's are still afraid of the BN. The Sabahans on the other hand have spoken out clearly that they no longer support BN. Did you not see the poll at this blog? In case you didn’t see the poll results, here are the result:

    Should SAPP
    1. Stay with BN: 3%
    2. Leave BN & Non-align: 10%
    3. Leave BN & Join PR: 85%

    Is the vote of no confidence relevant:
    1. Yes: 86%
    2. No: 13%

    Obviously, the vast majority of the Sabahans are against BN and support the SAPP in trying to ask for more oil money and to improve the conditions of the Sabahans.

    Did you not read the outpouring of Sabahan after Sabahan who are against BN? Just count how many people have spoken out at this forum against BN. If you can count beyond 2 you will see that hundreds have spoken out to support Datu Yong and SAPP. And for every one who has spoken out to support Datu Yong and SAPP, you can be sure that thousands more are in agreement. And no more than a few have spoken out in support of the BN. You can count them on the fingers of your hand.

    It is clear that the people of Sabah are in support of Datu Yong and SAPP. And it is also clear that UMNO-BN will fall in September and a new government will form under the PR. Anybody who is still supporting BN will find themselves on the outside. If that is where you want to be, then fine. Otherwise, you’d better look carefully where you’re going.

    As for the Sabahans, they’re all supporting Datu Yong and SAPP and will get to share much more oil money and see government policies change for the better.

    Liang 1A

  56. Who are the six 'option holders' of Petronas?
    Datuk Dr Jeffrey Kitingan | Jun 24, 08 4:26pm
    In view of the shocking developments as inevitable result of the sudden oil price hike, I would like to raise several issues with regards to the situation in Petronas which I believe most people are not aware of.

    This is especially pertinent in the face of several revelations, such as the fact that the oil wells in Sabah will dry up six years from now. The issue has also been raised that Petronas ‘could go bust in 2018' forcing us to ask: Where have all the huge amounts of Petronas money gone to?

    Has Petronas been managed so badly that despite it being the nation's biggest money-earner, it is now facing the possibility of going bust (bankrupt)? The first problem with Petronas is the fact that it was designed to be a secretive organisation.

    The Petronas agreements have been classified secret. Why? What clauses are in the agreement that the people should know? This secrecy also include the secrecy of Petronas' detailed annual report which is shielded from public scrutiny, making it an organisation without public accountability.

    The other shocking revelation that had came to my knowledge is that 80% of the oil produced by Petronas is not sold directly to the world market but is channelled through six 'option holders' who obtain the supply from Petronas at below market prices.

    These option holder agents are the ones reaping the benefits in the oil price hikes. Who are these people? Why are there in the first place? Why has such a system been created for Petronas? Are these people, in fact, representing certain private interests?

    It is also understood that this supply through the option holders is sold by contracts with a binding agreement for 20 or 30 years, causing huge losses for Petronas when oil price increases, as Petronas would then have to continue selling at the old agreed price.

    Only 20% of Petronas's supply is sold through direct open bidding. Because of these arrangements, Petronas is sadly not maximising its revenue by dealing direct with the open world market. Instead, it has been incurring incalculable losses for the nation and for the people. How much this monstrous loss is, we will never know.

    The members of parliament and the state governments should boldly raise up this very important issue in parliament or directly with the federal government for the benefit of the oil-producing states.

    As soon as possible, leaders of the oil-producing states should seek for a review of the oil royalty rate and push for a differentiation of prices and benefits for the oil-producing states and the non- oil-producing states.

    This review is being offered by the alternative government which is committed to giving the oil- producing states at least 20% oil royalty. This is a window of opportunity for all of us to demand for a review of the Petronas agreements, and to make Petronas more open and transparent. P

    Parti Keadilan Rakyat also demands that the system of having the six option holders be abolished. A new system should be created in which the three oil-producing states are in control of the marketing arm of Petronas, to make Petronas trade directly in the world market with the aim of maximising revenue for the benefit of the nation.

    Obviously, Petronas is a huge business organisation which is not accountable, secretive, and has been open to a lot of abuses, including the decision to use its revenue to bail out various individuals who faced bankruptcy as results of the Asian economic crisis ten years ago.

    If the federal government truly wants to be responsible and accountable to the people as it claims it wants to be, it can begin to prove its sincerity for excellent governance by looking into the problems with Petronas.

    The writer is PKR vice-president.

  57. Did Petronas sell forward at very low price?
    Mirage | Jun 24, 08 4:26pm
    Every crude oil producing countries allocate a percentage of their production for domestic consumption and the balance for export to earn foreign exchange.

    Look at what Brunei and Saudi Arabia and the many more crude oil exporting countries do - both and all are net producers and net exporters of crude oil but there are no changes in the prices at their pumps for both petrol and diesel despite crude oil price now reaching US$140/- per barrel.

    They are all enjoying boom times and a boost to their state coffers with the greatest windfall of all times with record foreign reserve balances. So why are we seeing the reverse in Malaysia? There is obviously a mismanagement of the funds from the powers-that-be.

    Where have the windfall profits for Petronas gone to? A royal commission should be formed to investigate where all the profits/funds earned from our oil exports have gone to. I cannot imagine that a net producer and net exporter of crude oil like Malaysia has to be in this position.

    The foreign exchange from our crude oil net exports are poorly managed or badly mis-managed and no one knows where all the profits over the years has gone to. There is no accountability by the powers-that-be. E should be enjoying a boom time and a boost to our economy. We should be celebrating.

    Petronas must have badly mis-managed the windfall earnings by selling our Malaysian sweet crude forward at a miserably low price and buying low-grade crude oil at a hefty high price for local consumption.

    If that is the case, all Malaysians have been betrayed. We have all been betrayed by this incompetent government with all the failed projects and wastage of all the Malaysian citizens taxpayers’ money.

    Our future generations were supposed to have a bountiful legacy but it is now squandered and this has harmed the Malaysian economy with the inflation rate mounting daily.

  58. Harga minyak di negara pengeluar minyak seperti Malaysia

    UAE RM1.19/litre
    Eygpt RM1.03/litre
    Bahrain RM0.87/litre
    Qatar RM0.68/litre
    Kuwait RM0.67/litre
    Saudi Arabia RM0.38/litre
    Nigeria RM0.32/litre
    Turkmenistan RM0.25/litre
    Venezuela RM0.16/litre
    Brunei RM 1.20/litre

    MALAYSIA RM2.70/litre
    =(RM2.70 x 159 litres = US $ 135.00per barrel international price. so where is the subsidy to the RAYAT??? and don't tell us your cost is RM 3.00 per liter and BN Govt subsidize us 0.30 per Litre as we know the cost is less then RM0.05 per litre for oil producing country)

    So, Malaysian people are fooled by the govt for morn than 50 years...


  59. Stupendous profits for Petronas' option holders

    Straight Mat | Jun 30, 08 4:03pm

    I read with great curiosity this dismissive letter on Petronas’ option holders. The great man, Confucius, once said that if the mat is not straight, do not sit on it. Adjust the mat first.

    The arguments put forth by this writer is like a crooked mat. It all sounds so plausible until you look at the time frame.

    Any accounts and finance (101) student will know that a set of accounts like that proffered by the writer is a snapshot of events of the accounting period - in this case 12 months ending March 31, 2007.

    So if Petronas sold oil at the price at US$60 odd dollars per barrel as per the accounts, and as per the writer’s letter, this looks okay and is okay provided all the figures have been independently audited.

    What the writer fails to highlight is that up to March 2007, the price of oil never went over US$100. It is after March 2007 that oil price skyrocketed

    I happen to have a copy of the Financial Times of June 19, 2008. The oil price of Nymex crude in US$ was about US$100 per barrel in early January 2008, then went down below US$80 in February 2008 and then straight up to US$136.68 on June18, 2008.

    I am not suggesting anyone in Petronas is doing it, but if anyone is inclined or brave enough to buy an option during 2007 or even early February 2008 at anything like US$60,US$80 or US$100 per barrel, this option holder stands to make about US$70, US$80 or US$30 per barrel if the option holder sells it at US$130 per barrel.

    Multiply this by the quantity sold and the profits are stupendous (Read Soros’ book New Pardigm of Financial Markets for an overview).

    That is the gist of Dr Jeffrey Kitingan's letter on the necessity to seek out the identity of these so-called phantom option holders if indeed there are any.

    It is not a case of Harvard vs non-tertiary. It is a case of straightening the mat and sitting down to see the merit of both sides of the argument.

    The money in question is at the end of the day the rakyat's money.

  60. 油价暴涨:“自挖坟墓”的首相
    6月6日 上午11点33分

    你怎么说(1) 政府前天宣布史上最大幅度的油价及电费调涨,不但引起在野党的鞭挞,更掀起民间一片反弹。且听听《当今大马》读者怎么说。


    车主现金补贴,政府公务员加薪,各种所谓的津贴,全是掩眼法!PAK LAH你以为这些能弥补人民的损失吗?



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    最尊敬的首相、部长 你们还在发梦吗?你们以为全部人民好像你们大鱼大肉吗?用人民的纳税钱打油吗?











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  62. 2008年7月6日将举行的万人反燃油涨价示威

    反对通货膨胀联盟(Protes)计划在星期天(7月6日),假八打灵再也的阿马广场(Amcorp Mall)展开“百万人抗议油价高涨游行”,抗议政府最近调高燃油价格的决策。

  63. 阿都拉“进三步退一步”的阴谋
    黄润松 | 6月19日 晚上8点21分









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