Time for 'national social welfare programme'
Published: Jun 9, 2008 3:10 AM | Updated: Jun 9, 2008 7:23 AM
A national social welfare system must be set up immediately ahead of any further rise in the price of fuel and removal of other subsidies.
A national social welfare system must be set up immediately ahead of any further rise in the price of fuel and removal of other subsidies.
Sarawak PKR liaison committee member Dr Francis Ngu said the cabinet’s offer of rebates to vehicle owners does not address the higher cost of living for all consumers, especially the poorest who may not even own a vehicle.
A long-term social welfare programme must proceed alongside a more vigorous wage reform drive in the private sector and regulation of foreign labour, he said in a statement.
Personal tax cuts and refunds by “significant elevation of the lower thresholds” should also be considered.
Ngu said social welfare recognises the right of citizen to a basic dignity of living and belonging to society, which are important to social peace and cohesiveness.
‘The current rise in petrol price is saving the nation a massive ‘subsidy’, which is really increased profit to Petronas. When the pump price is floated at international market prices, the profit increase to Petronas is RM50 billion - more, if world crude rises further,” he said.
“All other subsidies, if finally withdrawn, are estimated to save government another RM50-80 billion. All leakages of subsidies, and to undeserving sectors, will have been plugged.”
Much of the RM50 billion or RM100 billion earned by Petronas or saved by government, should be set aside for economic investment, especially public transportation infrastructure.
“Even 10 percent of either sum is sufficient to launch the (welfare) programme, 25 percent of either will establish a good programme and 50 percent will send all the street protestors praising the government.”
“Thus welfare aid is institutionalised at a level consistent with the economic strength of the nation.”
Aid to confidence
Ngu said that social welfare payments can be implemented within months via bank accounts. Payment to minors should be through parents.
Payments to the poorest, who do not have bank accounts, will have to be separately dealt with, as well as cases of Sarawakians without a Mykad.
A fine tuned long-term programme will have to be based on a legislative framework, means testing, welfare fraud detection and judicial sanctions.
Malaysia is said to have negotiated its way out of the 1997 East Asian financial crisis by pump-priming the economy by spending on infrastructure, among other measures.
The economic slowdown this time round is dictated by rising cost of production and severely damaged consumer and investor confidence, and anticipated dipping of export demand for manufactured goods. Tourism and related services may also be affected.
A social welfare system spending of RM 20-30 billion alongside infrastructure spending will help maintain domestic retail and services demand and restore part of the business confidence, Ngu said.
“Thus a social welfare system is justifiable in terms of public policy, affordable, technically feasible and even economically sound,” he added.
Sarawak PKR liaison committee member Dr Francis Ngu said the cabinet’s offer of rebates to vehicle owners does not address the higher cost of living for all consumers, especially the poorest who may not even own a vehicle.
A long-term social welfare programme must proceed alongside a more vigorous wage reform drive in the private sector and regulation of foreign labour, he said in a statement.
Personal tax cuts and refunds by “significant elevation of the lower thresholds” should also be considered.
Ngu said social welfare recognises the right of citizen to a basic dignity of living and belonging to society, which are important to social peace and cohesiveness.
‘The current rise in petrol price is saving the nation a massive ‘subsidy’, which is really increased profit to Petronas. When the pump price is floated at international market prices, the profit increase to Petronas is RM50 billion - more, if world crude rises further,” he said.“All other subsidies, if finally withdrawn, are estimated to save government another RM50-80 billion. All leakages of subsidies, and to undeserving sectors, will have been plugged.”
Much of the RM50 billion or RM100 billion earned by Petronas or saved by government, should be set aside for economic investment, especially public transportation infrastructure.
“Even 10 percent of either sum is sufficient to launch the (welfare) programme, 25 percent of either will establish a good programme and 50 percent will send all the street protestors praising the government.”
“Thus welfare aid is institutionalised at a level consistent with the economic strength of the nation.”
Aid to confidence
Ngu said that social welfare payments can be implemented within months via bank accounts. Payment to minors should be through parents.
Payments to the poorest, who do not have bank accounts, will have to be separately dealt with, as well as cases of Sarawakians without a Mykad.
A fine tuned long-term programme will have to be based on a legislative framework, means testing, welfare fraud detection and judicial sanctions.
Malaysia is said to have negotiated its way out of the 1997 East Asian financial crisis by pump-priming the economy by spending on infrastructure, among other measures.The economic slowdown this time round is dictated by rising cost of production and severely damaged consumer and investor confidence, and anticipated dipping of export demand for manufactured goods. Tourism and related services may also be affected.
A social welfare system spending of RM 20-30 billion alongside infrastructure spending will help maintain domestic retail and services demand and restore part of the business confidence, Ngu said.
“Thus a social welfare system is justifiable in terms of public policy, affordable, technically feasible and even economically sound,” he added.
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