Subsidies rationalization is a shared responsibility

Subsidies rationalization is a shared responsibility, Gerakan

Press statement by Gerakan by Dr Cheah Soon Hai, Gerakan head of central bureau on environment, safety and quality of life, and Derga Assemblyman

July 16, 2010

Gerakan asserts that subsidies rationalization is a shared responsibility for all, not only the Rakyat, but all the government and corporate citizen.

Gerakan is proposing four steps to be adopted by the government based on the guiding principle of social justice and good governance as envisaged by Prime Minister Najib's 1Malaysia, in view of the cut in subsidies for sugar, petrol, diesel and liquefied petroleum gas (LPG).

Gerakan’s head of central bureau on environment, safety and quality of life, Dr Cheah Soon Hai, said firstly there should be more enforcement to prevent unscrupulous businesses from taking advantage of the subsidies cut by imposing higher prices on their goods.

Dr Cheah said the public and media could act as watchdog to highlight "unethical business practices". A boycott campaign can be organized against those recalcitrant businesses.

Secondly, he said, the savings from subsidies should be seen channeled directly back to the people, particularly the poor, through various social reliefs for example reducing public transport fares, (encouraging the usage of public transport), and helping the poor to save money on fuel. Dr Cheah also suggested government to consider introducing coupon system for the poor to buy essential goods to cushion the impact of the rising living cost. 

He said the government should also put a stop to any instances of misuse, abuse and wastage of public funds. "The money saved should rightly be used for education, healthcare and public transportation system," he stressed.

“Fourthly, the government should consider cutting subsidies on big corporations like the independent power producers. The subsidies rationalization is a shared responsibility for all, the government, Rakyat as well as corporate citizens,” Dr Cheah, who is also Derga State assemblyman, said in a statement.