Below are Excerpts of Datuk Shahrir Abdul Samad's interview by NSTP Sheridan Mahavera on how the government has to review price controls and subsidies in an honest way, even doing away with policies which may be popular but are unrealistic.
Source: Shahrir: It's a quality-of-life issue
By : Sheridan Mahavera
"We have price controls on rice, on the standard and premium varieties. I have checked and these varieties are not even in the market. We are controlling something that is not even in the market."
"If we say that there are things that we can control that we can't, then (in the end) it goes out of control."
We have been told there is a national price monitoring commission, but who are its members?
If the market says there is no demand for premium and standard rice, then why are we controlling it? It's something that does not make the government look good.
Another example is steel bars. The price has been set at between RM600 and RM700, below the (international) market price.
But contractors can't buy them at these prices. So what they do is inflate the price with other costs. It becomes a joke and the government gets laughed at.
The whole price control mechanism is a joke. If you have price controls just for PR purposes, it does not make the government look good, especially when you have price controls but can't control the price.
You can control the price of whole chicken, but traders overcome it by selling cut chicken.
There is no point in setting prices which are unrealistic. The situation becomes untenable, you do not achieve anything but bad publicity for the government.
The government must be fair when it talks about price controls. If you cannot control prices, then you have to say so. At the very least, ensure that there is supply.
If the increasing price of feedstock is driving up the price of chicken, then we have to ask: "Can we reduce the price of that component in the supply chain?"
We cannot go to retailers and penalise them for something they are not responsible for. So we have to have a more comprehensive view of things.
You have to have a more reasonable list of essential food items. The impression I get is that everything seems to go on the list.
Then there is the question of subsidies. Do you give them to the consumer or to the producer?
Now we are subsidising the producer so that he comes out with the item at a determined price.
What happens if you give it (the subsidy) to the poor consumer and allow him to buy what he wants? Say you give a poor guy RM600 to feed his family of three. He can decide what he wants to do with it.
We have to know what the market price is first. I don't think we know this. We give producers a subsidy now in the hope that we can influence the final price of the item.
Prices go up and yet Malaysian wages don't. So these are all issues the government has to settle. Then there are tolls. That is the result of the privatisation policy we started.
If you want private companies to build roads, you must let them make private profits. So we have to look at issues of the past that were detrimental to Malaysians. We have to be brave enough to change them.
Ultimately, it is the consumer who has to suffer a reduction in the quality of life. This is essentially what managing inflation is.
Source: Shahrir: It's a quality-of-life issue
By : Sheridan Mahavera
"We have price controls on rice, on the standard and premium varieties. I have checked and these varieties are not even in the market. We are controlling something that is not even in the market."
"If we say that there are things that we can control that we can't, then (in the end) it goes out of control."
We have been told there is a national price monitoring commission, but who are its members?
If the market says there is no demand for premium and standard rice, then why are we controlling it? It's something that does not make the government look good.
Another example is steel bars. The price has been set at between RM600 and RM700, below the (international) market price.
But contractors can't buy them at these prices. So what they do is inflate the price with other costs. It becomes a joke and the government gets laughed at.
The whole price control mechanism is a joke. If you have price controls just for PR purposes, it does not make the government look good, especially when you have price controls but can't control the price.
You can control the price of whole chicken, but traders overcome it by selling cut chicken.
There is no point in setting prices which are unrealistic. The situation becomes untenable, you do not achieve anything but bad publicity for the government.
The government must be fair when it talks about price controls. If you cannot control prices, then you have to say so. At the very least, ensure that there is supply.
If the increasing price of feedstock is driving up the price of chicken, then we have to ask: "Can we reduce the price of that component in the supply chain?"
We cannot go to retailers and penalise them for something they are not responsible for. So we have to have a more comprehensive view of things.
You have to have a more reasonable list of essential food items. The impression I get is that everything seems to go on the list.
Then there is the question of subsidies. Do you give them to the consumer or to the producer?
Now we are subsidising the producer so that he comes out with the item at a determined price.
What happens if you give it (the subsidy) to the poor consumer and allow him to buy what he wants? Say you give a poor guy RM600 to feed his family of three. He can decide what he wants to do with it.
We have to know what the market price is first. I don't think we know this. We give producers a subsidy now in the hope that we can influence the final price of the item.
Prices go up and yet Malaysian wages don't. So these are all issues the government has to settle. Then there are tolls. That is the result of the privatisation policy we started.
If you want private companies to build roads, you must let them make private profits. So we have to look at issues of the past that were detrimental to Malaysians. We have to be brave enough to change them.
Ultimately, it is the consumer who has to suffer a reduction in the quality of life. This is essentially what managing inflation is.
Datuk Shahrir Abdul Samad is now the new Domestic Trade and Consumer Affairs Minister. We now have hope for a truthful minister, not a sandiwara minister.
18 comments:
TALK IS CHEAP & TALK ALL HE LIKE BUT ONE THING FOR CERTAIN... FEW MONTHS DOWN THE ROAD ITS NOT THE CONSUMERS BUT THE INTEREST OF THOSE PEOPLE AROUND HIM WILL BE HIS PRIORITY.
ANYTHING FROM BADAWI ADMINISTRATION, AS THE PAST 4 YEARS HAS SHOWN... NOTHING BUT CORRUPTION AND MORE CORRUPTION.
WITH THE NEW BUNCH OF NINCOMPOOPS IN HIS CABINET, THEY WILL SPEND ALL THEIR TIME RAPING THE WEALTH & RESOURCES OF THE COUNTRY.
sharir and zaid are the wo with grey matters. others, yet to comr across. maybe they will surface, being an optimist like me.
He sounds very promising. I hope he will walk the talk. And dont talk only!!!
Oh my, Sharir forget something about bureaucracy : all department REFUSE to talk.
Take Sharir own example
What happens if you give it (the subsidy) to the poor consumer and allow him to buy what he wants? Say you give a poor guy RM600 to feed his family of three. He can decide what he wants to do with it.
For the simple works of distribute RM600, guess what happens.
First some say this is roles of the welfare department, then Welfare will push to local development department, the push to MITI, and the balls just kick around. And nobody bother to join the nuts and bolt.
Why not INCENTIVES and PENALTIES? A rewards/punishment policies that help retailer/manufacturer bring down the OVERALL cost?
For example, when government keep complaining the sugar subsidiaries, in fact, lots of Malaysia manufactured food use TOO MUCH sugar. A 5g reduce for every 100g of food can make a huge different.
And come to the meat supplies, it seems there is government do too little to help modernize the poultry farms, cattle farms,etc.
For farmers, there is little incentive to promote vegetables preservation industry.
The list just keep going.
Yup..the rice mechanism is a big joke. The rice in msia is only slightly cheaper than that in spore (AFTER currency conversion). But the quality is much lower. For the same quality, i thk it's more expensive in msia. Suppliers will always say transportation is expensive, and that boils down to tolls.
Expect prices to soar further...wanna bet..?
Syabas newly minted one...
24 Mac 2008
and here's a wonderful primer:
http://miltonfriedman.blogspot.com/
tgk ni hah
http://kucheng.myminicity.com/ind
Cock Talker,
I believe Shahrir will do something good. Give him a chance, for he's a much better person to do something.
Moo_t,
In the current paradigm shift, I believe the little napoleon will not be allowed to fool around. There is a strong wind that will bring them down.
Hasilox,
Let Shahrir do something and we have to give him a chance to proof himself.
Jefus,
Thanks for the link
Yapchongyee,
5a Prinsep Road,
Attadale, WA6156
Email : ychongyee@yahoo.com
Blogg. :http://yap.chongyee.blogspot.com
LETTER TO MINISTER OF LAW :YAB ZAID IBRAHIM
Dear YAB. TAN SERI ZAID IBRAHIM
I have been trying over a period 2 years to publicise the abuse of power by Court of Appeal Judge Dato Zainon binti Mohd. Ali. She adjudicated my wife’s case Re : Originating Petition No. D2-26-41 OF 2001 ; Lim Choi Yin v. McLaren Saksama (Malaysia) Sdn. Bhd
I graduated in law from the University of Singapore in 1967 and practised at the Malaysian Bar from 1968 to 1978 when I emigrated to Australia. Therefore, I do have a professional knowledge of the law of Malaysia.
In 2001 my wife took out a petition in the KL High Court and the said petition was adjudicated by Judge Dato Zainon binti Mohd. Ali. She abused her power as the presiding judge and acted to AID & ABET THE THREE respondents Stephen Lim Cheng Ban, Wong Kem Chen and Kwong Sea yoon. The respondents perjured in their supporting affidavits applying for security for costs and Stephen Lim in a subsequent and 2nd APLICATION FOR STRIKING OUT SAID PETITION supported his application for striking out with documents that were clearly forged but Judge Zainon binti Mohd. Ali unjustly forbid & refused my wife’s application for leave to cross examine the respondents both for PERJURY & FORGERY on their supporting affidavits; in spite of my wife’s affidavits charging respondents for the said criminal offences and she supported her supporting affidavits with COPIES OF 3 POLICE reports charging respondents with perjury & forgery
Please take particular notice that the security for costs was enforced by respondents and my wife paid to respondents ringgit 60,000 in accordance with terms of court Order; and after payment of said security for costs; judge Zainon binti Mohd. Ali went on to approve the respondents 2nd application for striking out of petition WITHOUT EVEN AN ORDER TO SET ASIDE THE ORDER FOR SECURITY FOR COSTS. For the purpose of this letter only because I intend to publish this letter on the internet I will charge Judge Dato Zainon binti Mohd. Ali for having committed the OFFENCE OF MALFEASANCE Judge Zainon binti Mohd. Ali is deemed to have committed the offence of Malfeasance because she refused to give leave to my wife to cross examine the respondents Stephen Lim Cheng Ban for fabricating false evidence, perjury, in the case of Wong Kem Chen and Kwong Sea Yoon for perjury. She also is deemed to have committed Malfeasance when as refused to set down said petition for hearing AFTER MY WIFE HAD PAID RINGGIT 60,000 TOWARDS ENFORCING ORDER FOR SECURITY FOR COSTS. Please take note that the offence of Malfeasance is committed by the act of omission and in this case, the most obvious case is that of her refusal to set the petition for hearing AFTER SECURITY FOR COSTS IS PAID.
I have openly stated that Judge Zainon binti Mohd. Ali is because the EVIDENCE THAT WILL CONVICT HER FOR THE OFFENCE ALREADY EXIST IN THE COURT FILES OF SAID PETITION’ namely, the 2 conflicting court orders for security for costs and order for striking out said petition existing together and without any order for setting aside of the 1st order for security for costs. I have done this so that it will be a defence for anyone who will publish this letter that he is stating the truth.
Since the unlawful & illegal treatment by Judge Zainon binti Mohd. Ali I have taken to CAMPAIGNING FOR A DECENT AND ETHICAL AND HONEST JUDICIARY. I also believe that an INDEPENDANT JUDICIARY CAN BE PUT IN PLACE EVEN AS WE SPEAK, BECAUSE JUDGE ZAINON BINTI MOHD. ALI HAD IN THE COURSE OF HER PERFORMANCE ON THE BENCH WHEN ADJUCATING MY WIFE'S PETITION HAD COMMITTED CRIMINAL OFFENCES FOR WHICH SHE IS REQUIRED TO FACE CRIMINAL CHARGES.
I read in Mr Din Merican’s posts that your excellency had written a book that touted the need for judicial independence (although I have not read your book), and I am publishing this letter on the internet. You have been appointed by PM to restore the DIGNITY AND PROFESSIONLISM AND ETHICS OF THE MALAYSIAN JUDICIARY. From my perspective there is no need to reform anything because the laws of Malaysia is sufficiently adequate to be the basis of a just and law abiding society, BUT WHAT IS NEEDED IS RESPECT OF THE LAW BY HIGH COURT JUDGES AND THE MANDATORY ACCOUNTABILITY TO ENFORCE THE LAW AS IS. In this sense Judge Zainon binti Mohd. Ali must face criminal prosecution for malfeasance for the moment and others later.
I need to quote 2 passages from a posts in Mr Din Merican’s blogg. ;
(1)The final test is whether our judges are legal experts. An independent judiciary would be meaningless if judges were incompetent in applying the law. For the judiciary to inspire public confidence, its membership must reflect excellence. Lawyers who are deemed distinguished legal specialists by their peers and the Bench would then feel honoured to have been selected.
To recite all my charges made against Judge Zainon binti Mohd. Ali is much too long because I have made too many posts on my own blogg at http://yap.chongyee.blogspot.com; suffice to say that judge Zainon binti Mohd. Ali’s knowledge of the law is ZERO,! ZILGE ! For all my charges that are posted on my blogg relating to the total INCOMPETENCE AND ABSENSE OF LEGAL LEARNING OF JUDGE ZAINON BINTI MOHD. ALI I WILL HAVE NO PROBLEM TO DEFEND MYSELF BASED ON THE DEFENSE OF TRUTH.
YAB TAN SERI Zaid Ibrahim, you will have no problem if you are truthful and sincere to want to reform the Malaysian Judiciary because the laws the ENFORCE JUDICIAL INTERGRITY & PROFESSIONALISM IS ALREADY IN PLACE, ONLY THE WILL OF THE BN GOVERNMENT TO ENFORCE IT REMAINS.
(2) The second point that I want to make is : Last and definitely not the least is “integrity” and he went on to describe what I believe is lacking in our judiciary: integrity to Viscount Kilmuir, extends beyond not taking bribes but includes more subtle “integrity of the intellect” which means never advancing a dishonest argument,or shirking awkward facts just because they raise difficult problems.This 2nd point is self explaining and need no commentry.
This letter will be sent to YB Datin Seri Dr. Wan Azizah, leader of the opposition and YB Miss Fong Po Kuan MP for Batu Gajah.
Sincerely, yapchongyee
All Copies will be faxed except for those with their own blogg and this letter will be posted there.
Copy : The Attorney General, Malaysia, Chief Judge Malaya, President & Secretary Bar Council of Malaysia, to all legal practitioners randomly.
MAV, hmm... you are so easily taken in by mere talks. Shahrir said something which seems interesting/rational to you and you GO around saying good things about him. Hmmm...
To Yapchongyee,
May I address you as Mr Yap?
Judiciary rotten only when Judges and Lawyers play the same keys in Court!
Only when AG or Law Minister keep their eyes close on the Judges and Courts!
Only when Bar Council does the same to lawyers and ignoring Clients that make them exist!
(Or, they thought the more Grievance with Clients, they have more jobs!)
Lawyers taking charges without doing jobs and mal-practicing law against Clients' interest are "Common Practice" in Malaysia!
Raising Defamation or using Police force against Clients is also Common in Malaysia after Clients realized they had engaged crooks!
Ignoring proper Administrative and Rules in Court with siding towards the power or rich is a Common Phenomenon in Malaysia!
Your Case is only a stitch of an Iceberg!!
You have exercise your Rights to expose yours!
Will you help others to fights and expose others to All Malaysians and the World at large?
To use your experience and professionalism for the brighter future of Malaysians?
Help Malaysians to fight the battle more towards legal than Political!!
Politics had override Laws that's the Main Cause after Greediness had gone wild!!
from a Victim of Judiciary.
'What happens if you give it (the subsidy) to the poor consumer and allow him to buy what he wants? Say you give a poor guy RM600 to feed his family of three. He can decide what he wants to do with it.'
This quote is nice, but it a wrong statement. Sadly, the guy has no foresight in economics.
Giving subsidy to certain industries works to promote the goods created from it, and this in turn produces economy of scale, and thus wealth creation as a nation. The industry matures, and at some point of time, profits comes it even after the subsidy is withdrawn.
Giving money to poor families is only a short-term solution, as a well-fare does. In simple analogy is teaching a person to fish (he creates wealth in this case), instead of giving him fish to eat every month.
Basic logic is there, but if people start abusing the subsidy, causing it to never stop ending, and the industry never matures, wage remains the same, never profitable... then that's a different story.
Talk is Cheaper than Saliva.
And that is real.
Now obviously Shahrir Samad dont know what he is talking probably he cant talk at all, about the subject.
The present Cabinet comprises of bunch of incompetent, lack of reality understanding, highly corrupted characters, and above all, living a piece-of-sh*t mindset.
The main key control that Shahrir need to look at is Control Over Petrol and Diesel Prices. Once these prices are reduced (by subsidies from Petronas coffers, and/or taxpayers funds), all other basic living necessities will nose dive cheap.
By then, Shahhir Samad can sit in Office worrying on how to control Condoms prices at 7-Eleven, or Supermarkets.
A Minister must think like one, live like one, sounds like one, seen like one... and should not sounds like or look like any Tom, Dick, and Lingam!
Common sense ma, hai mai???
Congratulation to all the new ministers. It looks like there are many things not right under the previous administration.
First, we hear that BN needs to apologise to the Tun Salleh Abbas.
Then, we found out that we are controlling something that is not even in the market. What are they doing?
Now..."Dua hari selepas memasuki pejabat Kementerian Pertanian dan Industri Asas Tani, menteri barunya Datuk Mustapa Mohamed bertekad tidak mahu sebarang penyelewengan dan kebocoran subsidi berlaku lagi."
Thus that means that it was rampantly happen before!!! Something to think about.
and it goes on "“Ini wang rakyat. Saya difahamkan tahun lepas subsidi diesel dan petrol hampir RM2 bilion. Satu angka yang sangat besar. Jadi sudah pasti kerajaan nak pastikan yang dapat faedah adalah mereka yang benar-benar layak, bukan syarikat atau individu yang menipu kerajaan,” katanya."
Suddenly, so heard our leaders are so caring to the rakyat.
Before this:
"We are the master, you are the servant. Do as what we told you to do.'
"Demonstration is not our culture. Do it through the ballot paper."
"If you don't like the way we run this country, you can leave this country"
Did I hear somebody saying: "Bloggers are monkeys"
Is is wrong for the Gerakan Youth & Acting President to say that some UMNO leaders are arrogant?. Of course, including the MIC President.
How about the negotiated contract? How many of them are given out? Why they are always more expensive than the open tender? Shouldn't it be cheaper since a lot of the costs are save? Is there any hidden cost? Capabilities & competencies of the contractors are sometimes questionable...
I'm glad that the 'closed one eye' MP was not nominated. It's just a tip of the ice berg. Many of our politicians in power are forcing the government servants (in a polite way) to make way in favour of their own personal benefits.
I sincerely hope that the 4 new states of NOT BN will pave the way as an example to our BN leaders. Tok Guru had showed the way.
With sincerity & honesty, Allah swt will always be there to help us.
If we are no different from the people we took over, we are heading for a bigger doom.
There is not second chance.
May God bless all of us, "the rakyat of Malaysia".
Warrior2,
Ya, you are right. I am easily taken in by mere talks. But I'm not so easily taken in by hypocrites talk.
You have your preference and I do have mine. You think you have the highest virtue and the most noble sense and wisdom. I do not have your specialness in appreciating corruption and the preference of handouts and special privileges that you enjoy. You can continue to believe what you like to believe, and I have my rights to my own philosophy and ideology. This is human rights and liberties.
Ling Ling Chatt,
I do not agree with your perception. I believe that if a minister does have an idea to make things work and maybe idealistic, we should be please to have this person who would at least try to make things work; even if he should fail, it must not be because he did not try. It is much better than those Hypocrites and corruptors who gave excuses and find ways to enrich themselves.
Tak TumBuh Tak Melata,
If new people comes in with ideals and commitments to make things better, we should be please about it. There is nothing to gain from being pessimistic.
I think BN and BR will compete to outdo each other in terms of performance and we should see better days; its a hope but better than none.
with that 'what-is his-name' as a pm...
hate to say this, you get nothing but one big disappointment after another.
and it seem like there no more capable guys in umno that this 'what-is-his-name' pm got to hire all those has-been.
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