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Anwar Ibrahim defended fuel subsidies on the count that Malaysia is a net exporter for the stuff. For another, what, 2 years? It isn’t as if Malaysia’s coffers is awashed with cash: we have been in a fiscal deficit for many years now. And revenue from oil shouldn’t be spent on subsidies: it is wasteful, not targeted and inefficient. Handing out checks (a bit like what the current administration seems to be doing) is a lot more efficient.

Of course the current government could do a lot to lower the burden. Cancel huge projects of questionable value (why Penang Monorail, for example, when refurbishing the island’s tram lines are far much cheaper) – and channel that money into tax cuts. Malaysians would have a far easier time behind the checkout counter with no or little import duties than they would with extensive fuel subsidies, for one.

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One Comment

  1. completely agree.


One Trackback/Pingback

  1. […] Rishyakaran reviews the fuel subsidy system of Malaysia: “It isn’t as if Malaysia’s coffer is awashed with cash: […]

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