I got this email today..actually a few days back but don't really have time to go through all of my emails until just now.Anyhow, this writer wrote a very interesting and detailed analysis of our current situation on the oil price crisis and most of the facts given are true.Hopefully the people in the Ministry of Finance are reading this but I felt everyone of us should know whats really going on with our Pak Lah and his dwarves...read on and analyze yourself!WHAT IS NEVER MENTIONED IN Mainstream Media like NST/TheStar/Utusan/BH are these facts....Malaysian PerCapita Income USD 5000
VS
Singaporean PerCapita Income USD 25000
Further The Star made a comparison of prices in Thailand , Singapore and Indonesia .
For Thailand it is quoted at RM3.90/liter, however are they aware that in Thailand new cars are cheaper than Malaysia by RM10,000? They pay only one life time for their driving license? No renewal fee after that? Also that goes for road tax as well? And do TheStar also aware that you can drive all the way from Hadtyai to Bangkok on a six lane highway without paying any Tolls ??!!
Whereas here in Malaysia you have to pay yearly renewal for road tax , driving license and TOLLS, TOLLS, TOLLS!!!For Singapore how can you quote RM 5.20 ? Please quote in Singapore Dollars because they are earning in Sing Dollars. You might as well say Europeans are paying RM10/liter. RM5.20/liter = Sing $ 2.20/liter, still cheaper than Malaysia in view of fact that Singapore is not a crude oil exporter. Are you saying that you fill up petrol in Singapore by paying Ringgit?
In economy, dollar to dollar must be compared as apple to apple. Not comparing like durian in M'sia is much cheaper than durian in Japan!! Of course-lah, Japan is not durian producer!!! Comparing Malaysian durian with Thailand durian make more sense!!
For Indonesia we might say is cheaper there at RM2.07/liter but compare that to their level of income!
Now, let us compare the price with OIL PRODUCING countries:
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
Iran – RM0.35/litre
Nigeria – RM0.32/litre
Turkmenistan – RM0.25/litre
Venezuela – RM0.16/litre
MALAYSIA – RM2.70/litre
RM 2.70!!! Individual perspective:
As of last month a Toyota Vios would 'cause a damage' of about RM 89,000.
In the international market, a Toyota Vios is about USD 19,000
USD 19,000 = RM 62,700 (using the indicative rates of USD 1 = RM 3.30)
That makes Malaysian Vios owners pay an extra RM 26,300.
This RM 26,300 should be cost of operations, profit and tax because the transportation costs have been factored in to the USD 19,000.
RM 26,300/ RM625 petrol rebate per year translates to a Vios being used for 42.08 years.
I do understand that the RM 625 is a rebate given by the government, but it also means that one has to use the Vios for 42.08 years just to make back the amount paid in taxes for the usage of a foreign car. Would anyone use any kind of car for that long?
Now with these numbers in front of us, does the subsidy sound like a subsidy or does it sound like a penalty? This just seems to be a heavy increment in our daily cost of living as we are not only charged with high car taxes but also with a drastic increase in fuel price.
With all the numbers listed out, I urge all Malaysians to join me in analyzing the situation further.
Car taxation is government profit, fuel sales is Petronas' (GLC) profit which also translates into government profit. The government may ridicule us Malaysians by saying look at the world market and fuel price world wide. Please, we are Malaysians, we fought of the British, had a international port in the early centuries (Malacca), home to a racially mixed nation and
WE ARE NOT STUPID!!!We know the international rates are above the USD 130/barrel. We understand the fact that the fuel prices are increasing worldwide and we also know that major scientist are still contradicting on why this phenomenon is happening. Some blame Bush and his plunders around the world and some blame climate change and there are others which say petroleum 'wells' are getting scarce.
Again we go back to numbers to be more straight fwd
1 barrel = 159 liters x RM2.70/liter = RM 429 or USD 134
On 1 hand, we are paying the full cost of 1 barrel of crude oil with RM2.70 per liter but on the other hand the crude oil only produces 46% of fuel.
Msia sells crude oil per barrel at USD130 buys back Fuel per barrel at USD134. And not forgetting, every barrel of fuel is produced with 2 barrels of crude oil.
1 barrel crude oil = produce 46% fuel (or half of crude oil), therefore
2 barrel crude oil = approximately 1 barrel fuel
In other words, each time we sell 2 barrels of crude oil, equivalently we will buy back 1 barrel of fuel.
Financially,
Malaysia sell 2 barrel crude oil @ USD 130/barrel = USD 260 = RM 858
then, Malaysia will buy back fuel @ USD 134/barrel = RM 442/barrel
Thus, Malaysia earn net extra USD 126 = RM 416 for each 2 barrel of crude sold/exported vs imported 1 barrel of fuel !!!
(USD 260-134 = USD 126 = RM416)
So where this extra USD 126/barrel income is channeled to by Malaysian Govt?????????
Another analysis:
1 barrel crude oil = 159 liters.
46-47% of a barrel of crude oil = fuel that we use in our vehicles.
46% of 159 = 73.14 liters.
@ RM 2.70/liter x 73.14 liter = RM197.48 of fuel per barrel of crude oil. This is only 46% of the barrel, mind you. Using RM 3.30 = USD 1, we get that a barrel of crude oil produces USD 59.84 worth of petrol fuel (46% of 1barrel).
USD 59.84 of USD 130/barrel turns out to be 46% of a barrel as well.
Another 54% = bitumen, kerosene, and natural gases and so many more.
And this makes a balance of USD 70.16 that has not been accounted for.
So this is where I got curious. Where is the subsidy if we are paying 46% of the price of a barrel of crude oil when the production of petrol/barrel of crude oil is still only 46%?
In actual fact, we still pay for this as they are charged in the forms of fuel surcharge by airlines and road taxes for the building of road (because they use the tar/bitumen) and many more excuse charging us but let us just leave all that out of our calculations.
As far as I know, only the politicians who live in Putrajaya and come for their Parliament meetings in Kuala Lumpur (approximately 60+ km) are the ones to gain as they claim their fuel and toll charges from the money of the RAKYAT's TAX.
It is so disappointing to see this happen time and time again to the Malaysian public, where they are deceived by the propaganda held by the politicians and the controls they have over the press.
Which stupid idiot economist equates rebates for rich or poor with the cc of the vehicles? An average office clerk may own a second hand 1300cc proton Iswara costing $7,000 (rebate = $625) while the Datuk's children can own a fleet of 10 new cars of BMW, Audi and Volvo all less than 2000cc costing $2 millions and get a total rebate of $625 x 10 = $6,250! Wow what kind of economists we are keeping in Malaysia...wonder which phD certificate that they bought from...
Misleading concept of Subsidy:
The word "subsidy" has been brandished by the BN government as if it has so generously helped the rakyat and in doing so incurred losses. This simple example will help to explain the fallacy:
Example:
Ahmad is a fisherman. He sells a fish to you at $10 which is below the market value of $15. Let's assume that he caught the fish from the abundance of the sea at little or no cost. Ahmad claims that since the market value of the fish is $15 and he sold you the fish for $10, he had subsidised you $5 and therefore made a loss of $5.
Question : Did Ahmad actually make a profit of $10 or loss of $5 which he claimed is the subsidy?
Answer:
Ahmad makes a profit of $10 which is the difference of the selling price ($10) minus the cost price ($0 since the fish was caught from the abundance of the sea). There is no subsidy as claimed by Ahmad.
The BN government claims that it is a subsidy because the oil is kept and treated as somebody else's property (you know who). By right, the oil belongs to all citizens of the country and the government is a trustee for the citizens. So as in the above simple example, the BN government cannot claim that it has subsidised the citizen!
I thank the writer for this great facts but I apologize cause I do not know from where this article generated from cause it was forwarded to me from a friend.Anyhow, KUDOS to the writer and hope all Malaysians have a better understanding on the current situation now!lord musan
May 12th, 2008 at 4:28 pm
Salam TS,
Tahniah saya ucapkan pada TS kerana ‘berani’ turun ke kampung-kampung walaupun TS sendiri tahu adalah mustahil utk TS pergi ke semua kampung yang berada dalam negara ini.Sekurang-kurangnya ada juga menteri yang turun ke kampung dari menteri yang hanya tahu membina resort di dalam kampung untuk kegunaan sendiri.
Pertama sekali,saya bukan hendak mengkritik atau memperkecilkan keupayaan atau niat TS tetapi ada beberapa perkara yang saya rasa TS perlu tahu dalam melaksanakan niat dan program sebegini.Saya yakin dengan masa dan kesabaran banyak perkara di kampung yang dapat diperbaiki lagi.
TS, banyak masalah-masalah yang saya sendiri lihat di kampung-kampung seluruh negara dan antaranya adalah seperti berikut:~
Tempat Pembuangan Sampah- Masalah kebersihan di kampung-kampung ini dari segi pembuangan sampah yang tidak teratur seperti dibuang ke kawasan belakang rumah dan menimbulkan masalah bau,lalat dan penyakit.
Sistem Perparitan - sistem saliran air iaitu longkang-longkang yang menghubungkan kawasan tepi rumah ke longkang besar.Kebanyakan kampung memiliki longkang besar di jalan besar di hadapan rumah tetapi sekiranya diteliti longkang dari kawasan rumah penduduk tidak ada dan ini menyebabkan saliran dari dapur terus ke atas tanah dan ada juga saliran dari tandas dan bilik air terus ke kawasan tanah di belakang rumah.
Ada banyak lagi masalah-masalah yang kalau disebutdisini boleh memalukan orang kampung tetapi TS boleh melihat sendiri perkara yang berlaku sabanhari dikampung-kampung ini. Salah satu masalah utama yang TS harus cuba perbaiki adalah dari segi menataliti orangkampung atau ketua kampung itu sendiri.
TS harus cuba ubah mentaliti mereka dari golongan yang mengharapkan bantuan dari kerajaan (..saya pernah melalui pengalaman dimana penduduk kampung meminta bantuan dari YB untuk memasang pintu bilik air atau tandas kerana selama ini penduduk rumah tersebut menggunakan kain untuk menutup tandas itu tetapi yang meghairankan saya mereka telah duduk di rumah tersebut selama lebih 15 tahun dengan anak bini termasuklah anak2 perempuan yang masih remaja..) kepada golongan yang mengharapkan kejayaan atas usaha sendiri.
TS juga harus ubah mentaliti kampung yang sentiasa memnita sumbangan untuk apa sebab sekalipun kepada kampung yang akan memberi sumbangan apabila ada insan atau kampung lain yang memerlukan.
Saranan saya TS,
Sekiranya TS ingin pergi ke kampung-kampung yang lain,TS tak perlu memberitahu kepada wakil kampung atau ajensi yang bertanggungjawab tetapi TS boleh terus pergi dan menginap di homestay-homestay yang ada trdapat dikampung-kampung yang terlibat.Ini kerana sekiranya wakil kampung-kampung ini tahu akan kedatangan TS, ajensi dan wakil kampung akan bertungkus lumus untuk menutup segala masalah yang ada di kampung terutamanya dari segi masalah yang disebabkan oleh kurang pemantauan pihak ajensi sendiri.(..bukan semua kampung or ajensi camtu..ada segelintir sahaja!).Ini juga adalah perlu untuk mengelakkan TS dari dilayan oleh orang-orang yang hipokrit yang lama-lama boleh menjadikan TS sendiri seorang yang hipokrit.
TS juga harus melawat setiap penduduk kampung yang ada dalam kampung itu tidak kira berapa jumlah rumah di kampung itu ataupun sekrang2nya 70% dari semua penduduk untuk benar-benar tahu akan segala masalah yang ada di dalam kampung tersebut dan bukan hanya melawat rumah-rumah yang ditunjukkan oleh wakil kampung atau wakil ajensi kerana sekiranya ditunjukkan sedemikan ianya akan hanya menjadi satu lawatan politik ke kampung.Dari sini juga TS akan dapat melihat sendiri siapa yang sebenar2nya mendiami kampung tersebut.Adakah orang kita sendiri atau pun penuh dgn pendatang asing?
Dari segi pelaksanaan pula, apa yang TS lakukan dgn mengarahkan KEMAS memberi bantuan penuh kepada ibu tunggal sepeti yang TS maklumkan adalah baik tetapi TS mesti melihat dari segi lain atau dari sudut keseluruhan penduduk sesuatu kampung itu.Dan juga TS perlu memantau ajensi-ajensi yang terlibat kerana biasanya masalah2 seperti itu hanya ditangani apabila ada menteri datang tetapi apabila menteri balik,2-3 bulan selepas itu masalah itu akan kembali sepeti sebelumnya malah ada yang menjadi lebih teruk lagi.
Dalam era ini atau zaman ini, status kampungperlu ditngkatkan lagi dari segi ekonomi, prasarana dan terutamanya dari segi mentaliti penduduk dikampung.Kita mahu lihat penduduk kampung tidak lagi mengharapkan bantuan dari samada BN atau PR tetapi mahu melihat semua penduduk kampung berjaya meningkatkan tahap pemikiran diri sendiri.Tidak dinafikan tahap ekonomi penduduk kampung ramai yang sudah meningkat tetapi apa yang kita tidak mahu adalah tahap mentaliti yang rendah walaupun taraf hidup sudah tinggi.
itu sahajalah pandangan saya untuk TS berkenaan kampung-kampung di negara ini.Dari segi pihak KKLW pula,TS harus benar-benar arif tentang projek-projek yang dikelola oleh pegawai-pegawai TS untuk menghapuskan atau sekurang-kurangnya buat masa ini mengurangkan gejala rasuah yang berlaku (..sekiranya ada!)dari peringkat pembantu peribadi atau setiausaha politik TS sendiri sehinggalah ke pegawai-pegawai di bawah termasuklah semua Setiausaha-setiausaha Bahagian,Ketua-ketua penolong setiausaha dan semua sekali yang terlibat!(..sekali lagi saya katakan..sekiranya ada gejala rasuah di kementerian TS)barulah nasib penduduk di luar bandar betul-betul dapat diubah.Kalau tak ada gejala rasuah, KUDOS dan SYABAS saya ucapkan.
sekian, trima kasih.
lord musan