Malaysian PerCapita Income USD 5000
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 inThailand 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 alsoaware that you can drive all the way from Hadtyai to Bangkok on a six lanehighway 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 Dollarsbecause they are earning in Sing Dollars. You might as well say Europeans arepaying RM10/liter. RM5.20/liter = Sing $ 2.20/liter, still cheaper thanMalaysia 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 durianwith Thailand durian make more sense!!
For Indonesia we might say is cheaper there at RM2.07/literbut 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/litreRM 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 19,000USD 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 becausethe transportation costs have been factored in to the USD 19,000.RM 26,300/ RM625 petrol rebate per year translates to aVios 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 tomake 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 likea subsidy or does it sound like a penalty?
This just seems to be a heavyincrement in our daily cost of living as we are not only charged with highcar taxes but also with a drastic increase in fuel price.With all the numbers listed out, I urge all Malaysians to join mein analyzing the situation further.Car taxation is government profit, fuel sales is Petronas' (GLC) profit whichalso translates into government profit. The government may ridicule usMalaysians by saying look at the world market and fuel price world wide.Please, we are Malaysians, we fought of the British, had a internationalport in the early centuries (Malacca), home to a racially mixednation 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 andwe also know that major scientist are still contradicting on why thisphenomenon is happening. Some blame Bush and his plunders aroundthe world and some blame climate change and there areothers which say petroleum 'wells' are getting scarce.Again we go back to numbers to be more straight fwd1 barrel = 159 liters x RM2.70/liter = RM 429 or USD 134On 1 hand, we are paying the full cost of 1 barrel of crude oilwith 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 perbarrel at USD134.
And not forgetting, every barrel of fuel isproduced with 2 barrels of crude oil.1 barrel crude oil = produce 46% fuel (or half of crude oil), therefore2 barrel crude oil = approximately 1 barrel fuelIn 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 858then, Malaysia will buy back fuel @ USD 134/barrel = RM 442/barrelThus, Malaysia earn net extra USD 126 = RM 416 for each 2 barrelof crude sold/exported vs imported 1 barrel of fuel !!!(USD 260-134 = USD 126 = RM416)So where this extra USD 126/barrel income ischanneled 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 fuelsurcharge by airlines and road taxes for the building of road(because they use the tar/bitumen) and many more excuse charging usbut 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 theirParliament meetings in Kuala Lumpur (approximately 60+ km) are the onesto 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 thepoliticians 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 rebateof $625 x 10 = $6,250! Wow what kind of economists we are keeping in Malaysia...wonder which phD certificate that they bought from...
Example: If the second car seller had 30 units of second car below 2000cc,How?
They also can rebate RM18,750 (RM625X30 = RM18,750) !!they can renew the road tax 3month only, to get the rebate!than sell off the second car with a good price!now every one looking for small car!
Misleading concept of Subsidy:The word "subsidy" has been brandished by the BN government as if it has sogenerously 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 marketvalue of $15. Let's assume that he caught the fish from the abundance of thesea at little or no cost. Ahmad claims that since the market value of the fishis $15 and he sold you the fish for $10, he had subsidisedyou $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 thecost price ($0 since the fish was caught from the abundance of the sea).There is no subsidy as claimed by Ahmad.The government claims that it is a subsidy because the oil is kept and treated assomebody else's property (you know who). By right, the oil belongs to all citizensof the country and the government is a trustee for the citizens. So as in the abovesimple example, the BN government cannot claim that it has subsidised the citizen!_