IT has been reported that the government has commenced talks with Gamuda Bhd to negotiate the acquisition of four tolled highways in which this company has a majority stake. Upon acquiring the highways, the government would then reduce the toll rate by 30% during peak hours and to zero during off-peak hours (11pm to 5am).This is the first step towards fulfilling the Pakatan Harapan election pledge to abolish toll charges.We have been hearing for the past many months that the present government is under tremendous pressure to manage the country’s national debt amounting to one trillion ringgit. After the general election victory in May last year, an effort to raise funds was initiated by concerned Malaysians to help the government pay off this debt. A few infrastructure mega projects were also halted or scaled down to save the country from falling deeper into debt.
It seems the government is optimistic of its ability to overcome the national debt now, otherwise it would not initiate a plan to acquire the four highways, which could easily cost billions of ringgit. Is this the right time to commit to such a heavy burden, especially when there is so much uncertainty over the global economic outlook? Economists are of the opinion that the United States may face a recession by 2021.The government shouldn’t forget the annual shortfall of RM20bil after replacing the goods and services tax with the sales and service tax. I therefore urge the present administration to practise more restraint in pampering the rakyat as it could result in collecting less revenue, and then it would be unable to meet its ever rising expenditure. In the US, Democrats are persistently blocking the president from building the US-Mexico wall, which may cost the country billions of dollars.
The subsidy mentality has long been entrenched in our society. Malaysians are paying one of the lowest domestic water and electricity tariffs in the world. While still eligible to apply for government annual handouts, many of these so-called poor families could afford to own more than one car and air-conditioners at home.If the Pakatan government were to fulfil its election pledge by completely abolishing tolls, what would the impact be on our society from the congestion and pollution due to the drastic increase of traffic on our roads?Subsidy is a double-edged sword. It could help but also harm a large section of the community inadvertently. Reducing the toll rates would encourage more people to own cars instead of relying on public transport or car-pooling. On one hand, they may be able to save a bit on toll charges but on the other, they would be burdened by a heavy car loan repayment.
Has our Prime Minister forgotten his vision to turn our country into a developed nation by 2020? If he continues to pamper the people with subsidies instead of developing them to be more productive and diligent like the Japanese, he may have to change his target of achieving his vision to 2040.
PATRICK TEH
Ipoh
Read more at https://www.thestar.com.my/opinion/letters/2019/02/28/subsidy-mentality-has-to-go/#1hFkweWHOJSPg5KB.99