Monday, 30 June 2008


DATO’ SERI ANWAR IBRAHIM should STOP THE HIDING behind the Turkish walls and face up to this reported accusation of him being the party involved in a sodomy case against one, MOHD SAIFUL BUKHARI AZLAN. IF NOT for the reason of BEING THE MAN OF HIS WORDS, then DO IT for the reason of facilitating the police to carry on their duties in investigating this case, thoroughly and fairly. Which means, Anwar has to make himself available NOW that he is needed. The problem now that Anwar since has exclusively made the TURKEY EMBASSY as his own; is the PROTOCOL that the police or Malaysian Authorities have to obtain from the Turks in order to get to Anwar. And this does not go well with many Malaysians.(Read here)
Malaysians are smart nowadays to simply buy the given pretext of “someone to assassinate me…my life is at stake…etc”. Malaysians have been cooked up too many times, too repeatedly and frequently by the charismatic, energetic and enigmatic READY-MADE REASONS often at used by desperate politicians in desperate attempts. And taking refuge in an Official Foreign House of Administration especially the one much affiliated to the US is like ABANDONING Malaysia, its law, its people and the once famously principle of his own (Anwar Ibrahim) in standing up fighting and dare to face to consequence.
Anwar Ibrahim in calling up for the Rakyat to stand up, be brave and face the evil and corrupted mind of one, the government (which he indirectly claimed as the one in among the many that are responsible in his latest phobia episode of fabrication), SHOULD REFLECT the calling upon HIMSELF (instead of burdening the Rakyat with his wicked intent), and PUT HIS LIFE IN TRUST of God (ALLAH SWT), in trust of the country Malaysia (the nation), in the people who care and love him, in his political party and the newly-formed Pakatan Rakyat coalition, in the reformed judiciary and police force and most important, IN TRUST THAT THE TRUTH SHALL PREVAIL AND SHALL SET YOU FREE.
Show us the WAY and show us the TRUTH, dear Dato’. We had enough of theories hovering around the nation. We even had an INNOCENT GIRL put to SHAME (and mentally tortured) through the irresponsible acts of some people in PUBLISHING HER PICTURE. Read the article here, and you Dato’, perhaps will understand more of what the heck of a situation is happening now…much because of you.

Sunday, 29 June 2008


Sikap segelintir BLOGGERS dan media-maya MALAYSIA TODAY dalam menyiarkan GAMBAR PERTUNANGAN MOHD SAIFUL BUKHARI BIN AZLAN (Orang yang membuat tuduhan ke atas Dato Seri Anwar Ibrahim berkenaan kes liwat) ADALAH AMAT-AMAT DIKESALI DAN TIDAK BERTANGGUNGJAWAB!


Walau apa pun keputusan dan jalan cerita mengenai kes Anwar-Saiful ini, INSAN YANG TIDAK ADA KAITAN TIDAK HARUS DIPOTRETKAN BERSAMA DALAM APA BENTUK KONTEKS PUN.

Saya menyeru kepada semua yang terlibat, supaya BERTANGGUNGJAWAB DAN PRIHATIN DI DALAM SOAL INI.

(lihat di sini)

(dan lihat di sini)


QUESTIONS are flying in at unperturbed speed QUESTIONING the relation between the accused DATO SERI ANWAR IBRAHIM and the accuser (and victim), 23 YEARS OLD MALE BY THE NAME MOHD SAIFUL BUKHARI B. AZLAN.
How come a YOUNG MALE AT THE AGE OF 23 can be and was appointed as a SPECIAL ASSISTANT to such a figure, Anwar Ibrahim, who supposedly and should be more in needs of someone who is much higher in experience and older as one, Special Assistant? A 23 years old hero, who had just graduated into Anwar’s circle 3 months ago, cant be that too exceptionally well to be bestowed with such trust and post as a Special Assistant succeeding many other potential and trustworthy candidates. So what’s the REASON AND RATIONAL for Saiful Bukhari inclusion and appointment then? Whats the CATCH this 23 years old has that no one others have?
Why did Anwar Ibrahim, for such a smart and cautious politician he is, chooses a young male with only 3 months of party experience, to be his Special Assistant? What is so special about this 23 years old male then? What did he see in this 23 years old that others don’t?
Anwar Ibrahim had since, DENIED the truth in the allegation and was contemplating on taking legal actions against the accuser. The accuser and victim, Saiful Bukhari meanwhile is reported to be somewhere in a hospital in Kuala Lumpur most probably for medical investigations. (Read here)
Various statements have also been made by higher members of the Parti Keadilan Rakyat (PKR) discrediting the accuser/victim and defending their leader Anwar Ibrahim. (Read here) (and here).
One observer who wants to remain anonymous pointed out saying “ Anwar Ibrahim is a very smart, cunning and daring personality. This is no surprising since he was a product and once a student leader of the famous Malay College of Kuala Kangsar (MCKK). An EXCLUSIVE ALL BOYS ONLY COLLEGE AND CLUB”. “3 MONTHS!. That is how long it takes for both of them Anwar and Saiful to know one another. 3 months to get to know one another for a political venture seems QUITE AN ODD ADHOC of a union to me and a funny amazingly easily of how a short span in period of time can have its magic for one to embrace the other”.
“Will it surprise you then… No need to be lah… But we all should wait and don’t easily be caught in all these politically motivated shenanigans. The truth will come out sooner or later. But I already have mine…”
he said closing his arguments.
More to come…


Opposition Stalwart and Parti Keadilan Rakyat (PKR) De Facto Leader, DATO’ SERI ANWAR IBRAHIM has been ACCUSED OF SODOMY in a police report made by the accuser named MOHD SAIFUL BUKHARI who is also a Special Assistant to Anwar Ibrahim. (Read here)

Within hours after the report, some quarters within PKR wasted no time in sending sms-es, revoking the merit of the police report by claiming that Saiful Bukhari was forced to do it BUT no elaborations given as to by who and for what.

KL’s CID Chief SAC Ku Chin Wah has meanwhile, confirmed a report had been made on Anwar Ibrahim but declined to comment further but added that NO ARREST shall take place until the matter is studied and investigated.

It is reported that a SUDDEN CRISIS MEETING is currently being held by the Party (PKR) top members to discuss the issue and the courses if Anwar Ibrahim is to be detained.

More to come…

Wednesday, 25 June 2008


The FAMOUS MOHD YAHYA SAHRI of Parti Keadilan Rakyat (PKR) had yesterday resigned from both of his posts as a Special Officer to MB of Selangor and a PKR State Liasion Officer, cited the LOST OF FAITH (Hilang Kepercayaan) in the leadership of his boss TAN SRI KHALID IBRAHIM, as the reason. He declined to comment further but said details of the specific reason as to why he acted the way, will come later when needed.
Yahya is currently in the midst of the current on-going ACA INVESTIGATION on the MISUSED OF POWER in the awarding of cleaning contracts in Petaling Jaya. He has since, been cynically implicated by various quarters including from his boss, Tan Sri Khalid who later ‘sms-ed’ Yahya, suspended him from work which effected immediately then. Yahya was (according to an insider) seen avidly SURPRISED and ANGERED at the action taken by Khalid whom according to his (Yahya) beliefs, should have had taken a more sensitive and considerate manner in handling the issue, what more when they both have been friends, political associates and trustworthy partners for almost a decade. BUT instead, Khalid, in what many believed, trying to SAFEGUARD his new-found image and status, made a decision to cut off Yahya from anything that has to do with the Selangor new-formed government and its coming agendas. But the action taken by Khalid would indirectly deemed Yahya as guilty whereby the case is still early and very much on-going to even suggest anything of a wrongdoing by Yahya. Although it was just a suspension of work until the ACA clears out the investigation thing, many pro-Yahya supporters and PKR members saw it differently. They construed it as the shortest and fastest possible way for Khalid to POLITICALLY KILL-OFF Yahya Sahri for good. While Yahya has been trying to put things straight and clear his name at any given opportunities, Khalid has been fast shutting the doors.
In the latest development, both personalities have been hurrying themselves with allies and gathering supports. It was reported that some 200 PKR members had gathered at Yahya’s house in Shah Alam yesterday, to hear to his speeches and arguments on the provoking issue. In which then, Yahya also called for KHALID IBRAHIM TO RESIGN from his current post as the Head of Selangor PKR. Khalid meanwhile is reported to be doing the same, meeting and briefing some prominent PKR’s parliament and leadership members of the same issue, at his official resident.
Both men is believed to have been advised to wait for the final say or conclusion by the Party De Facto Leader, Dato Seri Anwar Ibrahim. In which a private meeting with each of them will be held by Anwar. But observers are sceptical over the results saying that Anwar will have to FAVOUR Khalid because Khalid holds more leverage and brokered more supports in and outside the Party. Khalid too is the MB of Selangor, a position which Anwar had put much efforts and strategies to win on behalf of PKR, and the one that he wont let slipping away ESPECIALLY NOW when the coalition of Pakatan Rakyat is very much seen at its hardest and most chaotic period of disagreements and distrusts among members of the coalition.
According to an insider, this issue may end as soon as the meeting with Anwar took place BUT Yahya is believed to already contemplating a move beyond the fragile circle of Selangor PKR, and targeting PKR Supreme Council as his next platform to get the support and to GET EVEN on Khalid. Yahya is also believed to have the support of many State (Selangor) PAS members and business communities in Dewan Perniagaan Islam Malaysia (DPIM). The fact is, there’s much to lose if both men still barking and provoking one another. BUT IF Yahya is found NOT GUILTY by the ACA, he may then had the best ground to ATTACK AND SILENCE Khalid Ibrahim, once and for all.
More to come…

Tuesday, 24 June 2008


A Day after his former ally and PKR Youth Chief, Ezam Mohd Nor, CLAIMED OF MISMANAGEMENT AND MISAPPROPRIATION of certain donations purportedly for the use towards the organizing of Pakatan Rakyat 's 100 days in Office, which went to PKR instead, Tan Sri Khalid Ibrahim, the Selangor MB and PKR Treasurer General ADMITTED to those allegations BUT acting as if he was of no knowledge and those were done without his consents. (Read here)

It was also heavily rumoured that Khalid displeasures were extended and aimed at one of his top aide, Mohd Yahya Sahri, who was associated with the current on-going ACA investigation on the award of Cleaning Contracts in Petaling Jaya. BUT of course, he is more upsets with Ezam, now that Ezam has started to play the POLITICAL GAME ONCE AGAIN.
Although Khalid made seen of himself to be a bystander in both cases, the very mentioned of Ezam, is the most probable reason as to why he has to put a brave face and a statement, and makes public on the issue of the donations. This is because Ezam Mohd Nor is a former strongman of PKR with still-friends all over the organization whom themselves could play their hands dirty (for whatever reason) and provide Ezam with all sorts of information. Hence, there’s no hiding from Ezam NOT when Ezam himself had claimed to will be receiving the documents of his allegation soon.
BUT others too are questioning the facts given by Khalid pertaining to the donations issue.
“How come Tan Sri Khalid Ibrahim, Treasurer General of PKR and one who is so much in charge of PKR's bank accounts, HAS NO prior knowledge of what is going on with the accounts, the transactions and the beneficiaries? This is totally making no sense at all”. Asked one political observer.

Sunday, 22 June 2008


Ezam Mohd Nor, Former PKR Youth Chief, yesterday MADE AN ALLEGATION OF MISMANAGEMENT OF FUNDS donated by various companies for the celebration of PAKATAN RAKYAT 100’DAYS IN OFFICE, by Parti Keadilan Rakyat (PKR).

The donations which were meant and supposed to go to the State were instead DEPOSITED into PKR’s own account.

Ezam said he will prove the allegation and the documents proving the wrong-doing are forthcoming.

No statement has yet been made by Selangor MB, Tan Sri Khalid or any PKR top members DISCREDITING the matter.

(Source NST Online)


Former Parti Keadilan Rakyat Youth Chief and Strongman, MOHD EZAM MOHD NOR, yesterday CLAIMED that Pakatan Rakyat (PR) is on the verge of a very DANGEROUS CRISIS that may SPLIT THE COALITION if not properly and aggressively addresses fast. He added that was the reason why Datuk Yong Teck Lee (SAPP President) and his rebellious members, chose NOW or the current moment to create the atmosphere of tension within the Rakyat and the subsequent call of no confidence vote on PM Abdullah Ahmad Badawi, most likely as instructed or requested by PKR De Facto Leader, Datuk Seri Anwar Ibrahim. It was an ACT OF DESPERATION by Anwar to divert the attention of the crack and disagreement that have been happening and noticed lately within Pakatan Rakyat especially in Selangor.
He also claimed that more than often, PAS (as one of the ruling members in Selangor and the biggest in Pakatan Rakyat) is kept IN THE DARK about the policies embarked and of their progress, including the recent FREE WATER offered to consumers. Further to explicit the matter is when the Chairman of State Infrastructure and Public Amenities, Datuk Dr Hassan Ali, who supposed to have the biggest share of knowledge regarding the matter, was more than kept in the dark.
“ALL FIVE PAKATAN RAKYAT STATES DO NOT HAVE A COMMON POLICY AND THIS IS AN INDICATION THAT THE COALITION IS FRAGILE” said Ezam, pointing us clearly to what many have predicted earlier, confirming the FAKE AND ILLUSTRIOUS brotherhood venture by both PAS and DAP, which was actually NOTHING to be honestly BEGIN WITH. And the ONE that will never and ever work-out between them.

Thursday, 19 June 2008


Less than 24 hours of the DEFIANCE AND CONTROVERSIAL calling for PM Abdullah Ahmad Badawi to be CENSURED by way of a NO CONFIDENCE VOTE in Parliament , DATUK YONG TECK LEE (Chief of SAPP) IS REVEALED!
50 years ol’ lawyer turned politician, Yong Teck Lee (or famously known as Sabah’s YTL) is a heck of politician with colours of no less colourful than any other controversial, historical and shameful politicians whom making mockeries out of Rakyat’s trust and elect.
DESERTING the Party and People who had gave their TRUST and LOYALTY, is nothing new to YTL. He has done that upon Parti Bersatu Sabah (PBS), influencing other members to dump the still PBS President and former Sabah CM, Datuk Joseph Pairin Kitingan, forming a new party called SAPP. Back then, the person who had much to do, persuaded and orchestrated this cruel move by YTL and co, is none other than the current so-called De Facto leader of PKR, Dato’ Seri Anwar Ibrahim. With the blessing from former PM, Tun Mahathir Mohamad, of course, after BN fails to win Sabah for the fourth time. And now he’s about TO DO THE SAME with SAPP, manipulating the party into believing of the some wonderful things to come, WORST, YET AGAIN deserting the trust and mandate given by the common party (SAPP) members and Sabahans in general. He has been riding on the common things which spelt same as to the ‘TWENTY-POINTS’ memoranda as submitted to then PM, Tunku Abdul Rahman before the formation of Malaysia; and more.
YTL OR as phrased as in Bahasa Malaysia ‘YANG TAK LARI’ is never far from the matters involving LAWS. His political career and personal liking has seen him IN AND OUT OF COURTROOMS, too many too often.
In May 1986 he was on a charge of possession of DANGEROUS WEAPONS.
In December 1990 he was charged with disobeying a police order to disperse in an alleged illegal procession.
Two months after YTL took office as Sabah CM, Pairin filed a defamation suit against him.
In October 1997, Yong was among several others named in a suit alleging conspiracy to remove Forestry Department acting director Awang Tengah Awang Amin from his post and to sign off forest management units to various individuals and companies.
In June 2001, Yong lost his Likas state seat after the Election Court ruled that the electoral roll in the March 1999 elections was tainted with illegal voters. The court also ruled that Yong's agents contravened the Election Offences Act by using billboards to smear a rival candidate.
(Refer the source)
(further inputs from NST)
Yong also came under heavy criticism over a debacle involving the Saham Amanah Sabah which resulted in more than 57,000 Sabahans, who had invested in the fund, losing more than RM400 million.

The fund, launched during his tenure as chief minister, was managed by Saham Sabah Bhd (SSB), a government-investment arm.

One of the most controversial deals was SSB's move to exchange 32 million shares of blue-chip company MISC Bhd, worth RM182.4 million, for three million shares in North Borneo Timber (NBT) Bhd and 4.79 million Sugar Bun stocks held by Suniwang Sdn Bhd. Yong's friend, Datuk Joseph Ambrose Lee, was the key person behind NBT and Sugar Bun.

The NBT and Sugar Bun shares eventually became almost worthless while MISC continued to pay massive dividends and at today's value, the shares would be worth more than RM1 billion.
(Refer the source) (And this too)
All the above mentioned and revealed, WERE DISGUSTING IF NOT SHOCKING. To let someone of such insincerity and scandals to lead Sabah as its CM from 1996 to 1998 by the then leadership of BN, BRIBING Yong Teck Lee to POWER for his generous act of deserting PBS and Pairin; was a SHAMEFUL ACT WHICH UNDERMINED THE HOPES AND TRUST given by HONEST Sabahans who had voted for HONEST leaders.
And IT clearly shows that YTL or Datuk Yong Teck Lee, is a GREED ‘Persona Grata’ INDEED.

Wednesday, 18 June 2008


It’s a WIN or BUST for SAPP and Yong Teck Lee from now on, the way I see it. There’s no turning back when the path you chose spelt DISASTER for either parties. For Pak Lah, he can ONLY hope for sense and sensibility from his disappearing peers in the Coalition force (sitting in Parliament) and from UMNO. As for SAPP, they can start counting their days in BARISAN NASIONAL (BN) even IF their wish of NO CONFIDENCE on Pak Lah does go through and made the impact. Because, the principle of which they embarked on, worth NO TRUSTING at all.
While Pak Lah is a clear cut leader who had less vision on how to lead the nation and losing popularity as fast as melting butter in hot pan; he lately had been seen going places promoting honest intentions in trying to reform so many things to which some even had him being branded as giving ways and faces by some quarters of fanatic or hardcore Malay segments, including former PM, Tun Mahathir Mohamad.
Yong Teck Lee too had been at places. The most recent was Hong Kong, where he had a meeting with Anwar Ibrahim, which Yong then countless times DENIED IT but today seen candidly SMILLING, ADMITING to his so-rumoured of meeting Anwar as TRUTH, with no further elaborations. Infact, he added, he had met Anwar TWICE, with the second meeting taaken place in KL. Also without further elaborations. So he LIED then. He manipulated everyone, thinking that SAPP was very much in solidarity with BN and Pak Lah, and was very much in honesty and truly living to the spirit and good-name of BN.
Pak Lah KNEW about this. He knew about those meeting taken place. That was why Pak Lah had been seen splashing all sorts of incentives and monetary schemes to Sabah and Sarawak, hoping with those he can calmed Sabahan leaders and also to buy trust and time in order for him to sort the other big part of his political troubles, which is UMNO. He didn’t anticipate this SAPP thing, coming. Nobody did, although Tengku Razaleigh had a few days back mentioned about it. Pak Lah didn’t take the call by Anwar Ibrahim about something to come before August, SERIOUSLY. Anwar even mentioned about SABAH. Sadly, that’s the PITY of having to know Pak Lah. HE TOOK THINGS FOR GRANTED.
SAPP has every right to question their leader of BN and govt on matters pertaining to their state, Sabah. SAPP has every right to push for something that benefits the people of Sabah. SAPP has every right to charter the course that may bring PEACE and WEALTH to the people of Sabah. BUT to demand OIL ROYALTY at a STAGGERING 20% and the RETURNS OF LABUAN TO SABAH are of wishes (or demand) that NOT PAK LAH, NOT EVEN the great Tun Mahathir (if he’s in power) OR any leader for that matter, WOULD ENTERTAINED AND OBLIGED TO. Those demands are not just affecting the government but MALAYSIA as a country as well.
All these years, revenues from all sorts of sectors belong to Malaysian, have been channelled and used for the greater improvement of Sabah and Sarawak (and vice versa). And although the progress in both states in reality were far from impressive, the proportions of the allotments, have been fair taking into all considerations including the size of both states compared to states in Peninsular Malaysia.
The fact is, SAPP is demanding for the UNTHINKABLE INCLUDING the DISGUSTED request for AUTONOMOUS POLITICAL POWER OF SABAH. YES goodness me! AUTONOMOUS SABAH!!! Meaning, SAPP wants Sabah to be literally much politically SEPARATED (in Power) from Malaysia (Peninsula), of those very aspects we have lived, fought and agreed by, for and to! These are NOT HONEST REQUESTS for the people of Sabah. These are RHETORICAL TRICKS put up TO BAIT OTHERS INTO SAPP HIDDEN AGENDAS of which ANWAR IBRAHIM could be much to do with it. Afterall, Anwar was then one of the KEY PLAYERS and CULPRITS who represents the Federal Power in asserting Federal authoritarian onto Sabah, by introducing UMNO in the early 90's to prohibit and prevent the then on-going insertions of Sabahan (and ethnicities) sentiments amongst the people by Parti Bersatu Sabah (PBS).
SAPP would do JUST, FAIRNESS AND FAVOUR to all Malaysian BY SKIPPING ALL THESE RHETORIC IDIOCIES AND FILE FOR DIVORCE FROM BARISAN NASIONA!. We (the Rakyat) had ENOUGH SUFFERING. We don’t need this to add to our already miserable and uncertain daily livelihood.

SAPP should go on its own. They can take the 2 parliamentary seats which are rightly NOT THEIRS, be a PROUD INDEPENDENT SABAHAN PARTY and see how well their agendas would do good to themselves and more importantly, to the people of Sabah. That is a challenge far worth in dignity and sincerity THAN threatening Pak Lah (and all Malaysians, in a way) for the SO OBVIOUSLY ABSURD REASONS GIVEN, which even the dumbest of me, cant be that dumb to logically, accepted IT.
We are so sure that Pak Lah time will come, in which he will let go or made to let go, leaving whatever legacy, both as President of UMNO and Prime Minister of Malaysia. (Which I wont be bother to care at all). BUT for SAPP and Yong Teck Lee, WIN OR BUST, THEY DEFINITELY HAVE TO START THINKING ABOUT LEAVING.


Datuk Nazri Aziz had speedily with no time wasted, came out telling SAPP and other members of Parliament, that VOTE OF NO-CONFIDENCE CANNOT BE TABLED ON MONDAY. AT LEAST not through the normal existing procedure guided under the Standing Orders Rule 27. BUT can be tabled using Motion of Emergency privileged under Standing Orders rule 18 (1), PROVIDED the motion fulfils the required criteria sets on to it. But that too, is UP TO THE SPEAKER TO DECIDE.


Sabah Progressive Party (SAPP) is REPORTED to have NO CONFIDENCE anymore in the leadership of their Coalition’s chief (BN) also the Prime Minister of Malaysia, Dato’ Seri Abdullah Ahmad Badawi (Pak Lah).
SAPP will table a NO-CONFIDENCE motion for votes against Pak Lah in the coming preceding of Parliament on Monday, June 23rd. The motion can be tabled by any members of the Parliament, but most probably the SAPP shall be the one initiating it through either YB Datuk Chua Soon Bui or YB Datuk Eric Majimbun.
As to WHY SAPP chooses to NOW delivers this potentially fatal-blow to not just Pak Lah, BUT BN as well. Here is their rational behinds it:
“We must make a stand before the window of opportunity closes. This window of opportunity closes by August after which Sabah would be forgotten again. The nation¡¦s attention would switch to MCA and UMNO elections, people will be pre-occupied with the fasting month, Hari Raya, school exams and year end events. Political fatigue in the national mainstream over Sabah issues would set in” – SAPP press statement.
What’s the REASON for SAPP to take this drastic action and by what inputs of sense can the Rakyat judge this action to as reasonable and timely? Here it goes:
“The momentum for us to recover our autonomy, get 20% oil royalties and return of Labuan would be lost. Unfair federal laws, excessive taxes and structural imbalances in the economy will remain entrenched. Sabah will remain the poorest state subservient to the central leadership. Labuan bridge, poverty eradication and rural development will remain elusive. Racial politics and wasteful monopolies will continue as usual. The illegal immigrant problems will reach boiling point. Grown up street kids, illicit drugs and crimes will continue to strike fear among the people. Police and law enforcement will remain understaffed and under-resourced. In other words, Sabah will lose out badly again. We will not get this window of opportunity for another 50 years, if ever again. In fact, we have now become suspicious of their delaying tactics.” – SAPP press statement.
Is SAPP pulling OUT of BN since now they have becoming outrageously VOCAL and AGAINST the spirit of the BN?
“We will have a press conference on Friday June 20 to announce this matter of SAPP membership in BN after our Supreme Council meeting. This is the most popular question of the week. Actually, the BN has already left Sabah. The spirit of BN is no longer there. It is not that Sabah does not want BN; it is BN that does not want Sabah. The BN does not recognize the contribution of Sabah to the national mainstream. Ask any Sabah UMNO leader privately, they will pour out their frustrations. Remember the speeches of MPs Datuk Anifah Aman on terrace houses, Datuk Ghapur Salleh, Datuk Wilfred bumburing and Datuk Eric and Datuk Dr. Chua Soon Bui? Many BN component leaders also share our feelings.” – SAPP press statement.
More to continue...

Sunday, 15 June 2008




(Note: click on the table chart to view in larger size)

1. Why has the price of fuel on the international market increased recently?

Since mid-2004, the price of crude oil has increased substantially on the world market. For example, the West Texas Intermediate (a reference price used in the United States and globally) increased from US$19 per barrel in 1993 to US$31 in 2003. In October 2004, it reached US$51 and in 2005 it went up to US$67 per barrel.

The main causes for these increases are:

- The existence of a tight market due to the small margin between production (83.0 million barrels per day (bpd)) and demand (82.5 million bpd);

- High demand for oil by China, India and the United States;

- Uncertainty of supply in some OPEC (Organization of Petroleum Exporting Countries) countries.

- Adverse weather conditions such as Hurricane Emily in Mexico, affecting oil production and

- Speculation on oil prices.

2. Our country produces oil. So why should we increase fuel prices?

The price of oil and petroleum products are determined by the international market based on supply and demand. These are factors beyond our control. OPEC also plays an important role in setting oil production levels which in turn, affect the market price. Although Malaysia produces and exports oil, we are not a member of OPEC, nor are we a major oil producing country. As such we have no influence on how the price of oil is determined in the international market.

If there is a large increase in oil prices on the world market, it affects the price of petroleum products such as diesel, petrol and cooking gas (LPG) in our country.

3. How do Malaysian fuel prices compare to neighbouring countries?

By comparison, fuel in Malaysia is much cheaper than most ASEAN countries. In fact, our prices are among the lowest in the world.

Due to the much lower prices of diesel in Malaysia compared to Thailand and Singapore, there is a big incentive for Thais and Singaporeans to buy petrol and diesel in our country.

4. How does the Government ensure fuel prices are cheaper compared to neighbouring countries?

The Government ensures a low price of petrol, diesel and cooking gas in Malaysia by exempting sales tax on diesel and petrol and providing subsidies for all products.

With the combination of subsidies and taxes forgone, the public can enjoy more affordable public transport. Subsidies also lower operating costs for fishermen and operators of river transportation in Sabah and Sarawak.

5. How are the retail prices of petroleum products in Malaysia determined?

The mechanism for setting retail prices of petroleum products has been in effect since 1983.

In brief, the retail prices of petrol, diesel and LPG are set as follows:

Petroleum Products Cost
+ Operational Costs
+ Margin for Distributors of Petroleum Products
+ Com
mission for Owners of Petrol Stations
+ Sales Tax
- Subsidies
= Retail Price

The price mechanism is linked to international market prices. The actual product price is determined after taking into consideration prevailing international prices, operating costs such as distribution and marketing costs and finally, sales taxes. In Malaysia, fuel is sold much cheaper than other countries because the Government provides subsidies and sales tax exemptions.

For example, the retail price of RON97 petrol on 31 July 2005 is as follows:

6. What are subsidies?

Subsidies are money paid to producers or retailers of a given product by the Government, in order to lower the retail price. It is a form of assistance for a given industry or segment of society.

7. How long will subsidies be maintained? Should they be abolished?

The Government will continue to provide fuel subsidies but the amount would be determined by the state of Government finances.

The Government is devising a more effective method to ensure that fuels like diesel and LPG are enjoyed by those truly requiring it such as fishermen, public transport operators and operators of river transportation in Sabah and Sarawak.

8. What are ‘taxes forgone’?

Diesel and petrol are subject to sales taxes of 19.64 sen per litre and 58.62 sen per litre respectively. These taxes are revenue for the Government in addition to being a means of maintaining stable petroleum product prices. But the Government has decided to forgo this tax so that the retail price of petroleum products remains reasonable. This actually results in a loss of revenue for the Government.

Recently, the amount of taxes forgone has increased. For example, in 1993, RM190.8 million was forgone, while in 1999 it amounted to RM2.6 billion. This year, it has rocketed to RM7.9 billion. Sales tax exemptions for diesel began in October 1999 following increasing prices, while for petrol it began in June 2004.

9. What are the negative effects of subsidies?

One of the adverse effects of subsidies is market distortion, meaning the price of the commodity does not reflect its actual cost. This jeopardizes the national economy as it would lead to excessive fuel consumption and wastage in addition to unhealthy practices such as illicit trade, cheating and smuggling. The Government cannot permit the gap between market and subsidized prices to increase as this could encourage profiteering. Today, irresponsible parties make illegal profits by purchasing diesel at subsidized prices and selling it at higher prices to the non-subsidised sector.

Another outcome from heavy subsidies is the smuggling of fuel, particularly diesel, to neighbouring countries. This is akin to giving foreigners the subsidies intended for Malaysians. Our country suffers a great loss. Based on projected subsidies of RM6.6 billion for 2005, smuggling 10 percent of fuel out of Malaysia would be equivalent to an outflow of RM660 million.

The Government also has to spend more for enforcement personnel and equipment in order to arrest smuggling activities.

Also, huge subsidies are ‘opportunity costs’ which prevent us from allocating more to national development to benefit a larger segment of our population. Savings from subsidies could be used to build more schools, hospitals and public facilities which would provide long lasting benefits for our future generations.

Today, both the rich and the poor benefit from subsidies which are actually meant for the latter.

Subsidies also jeopardize the ability of the Government to reduce the budget deficit.

10. How much would fuel and petroleum products cost without subsidies?

Without subsidies, premium petrol (RON97) would cost RM2.45 per litre, and not RM1.62 that we are paying now. In fact when a consumer buys a litre of premium petrol in Peninsular Malaysia, the Government bears 82.82 sen that is 58.62 sen in the form of taxes forgone and 24.20 sen in subsidies.

The actual cost of diesel in Peninsular Malaysia is RM2.07 per litre. Consumers pay RM1.28 per litre because of the 59.13 sen subsidy and 19.64 sen tax forgone, per litre.

The unsubsidized retail price of cooking gas (LPG) in Peninsular Malaysia is RM2.39 per kg. However, consumers buy LPG at RM1.45 per kg. This means that there is a subsidy of 93.92 sen per kg. For example, a 12 kg cylinder of cooking gas costs RM17.40 when in fact, the actual cost is RM28.67. In other words, for each cylinder of cooking gas purchased, the Government subsidizes the consumer RM11.27.

11. How much does the Government spend on fuel subsidies?

The more fuel consumers use, the higher the amount borne by the Government for subsidies.

As illustrated in Table 5, subsidies in 2001 were RM2.4 billion based on an average WTI crude oil price of US$25.24 per barrel. In 2004, the subsidies increased to RM4.8 billion based on the average international oil price of US$41.60 per barrel.

This does not factor the loss of revenue from taxes which has also been increasing. Losses in 2002 of RM3.3 billion rose to RM4.8 billion in 2003 and reached RM7.2 billion in 2004.

By increasing the retail prices of diesel and petrol on July 31 2005, the Government will save RM1 billion on subsidies. For 2005 subsidies are now expected to be RM6.6 billion compared to RM7.6 billion before the price increase (2004 subsidies totalled RM4.8 billion), as illustrated in Table 5.

Large subsidies are ‘opportunity costs’ as the substantial amount of money could be better used to benefit the rakyat, for example, by building schools or public amenities.

12. The Country benefits from increased oil prices. Why can’t the Government increase its subsidies?

When oil prices rise, the Government’s revenue increases accordingly. However, subsidies borne by the Government also increase from RM4.8 billion in 2004 to a projected RM6.6 billion in 2005.

It is true that as oil prices on the global market increase, the country’s export earnings from oil goes up. However, the Government chooses to spend this additional income responsibly. It would be unwise of the Government to utilize the additional income earned to fully subsidize fuel prices.

We must remember that gains from the increase in oil prices will only benefit us in the short term. In the medium term, subsequent increases in oil prices will adversely impact the world economy and being an open economy Malaysian exports would reduce and consequently national income contracts. As such, in the medium term an increase in oil prices does not benefit us.

Furthermore, we still have to import to meet some of our domestic oil needs. While it is true that we gain from exports of oil at higher prices, we still have to pay more for the oil that we import.

13. What is the impact of subsidies on Government finances?

Subsidies and tax exemptions impact Government finances in five ways:

- First, it results in an increase of the operating expenditure. Subsidies of RM6.6 billion in 2005 represent 7.4 percent of operating expenditure. Without subsidies, the fiscal deficit could be reduced.

- Second, if the savings are not used to reduce the deficit, it could instead be utilized for development. RM6.6 billion spent on subsidies represents 23.3 percent of the 2005 development budget, which is equivalent to building 600 secondary schools assuming it costs RM11 million to build one school.

- Third, tax revenue forgone represents a loss in revenue for Government. Sales tax revenue forgone of RM7.9 billion in 2005 represents 8 percent of revenue. If collected, this money could be used to build 316,000 low cost houses.

- Fourth, subsidies and sales tax forgone amounting to RM14.5 billion is sufficient to reduce the fiscal deficit from 3.8% of GDP to 0.7% of GDP for 2005. This would in turn strengthen the Government’s financial position.

- Fifth, a small deficit means that the Government can reduce its borrowings.

14. Should the Government use up contributions by PETRONAS to pay for subsidies?

In fact, contributions by PETRONAS are sufficient to fully cover fuel subsidies.

However, spending on subsidies are one-off expenditures which do not generate further income for the nation and its people. Although the Government could fund increased subsidies, it would not be the most prudent course of action as it would adversely affect funding for other productive projects.

If the rakyat and Government can share the cost of rising fuel prices, thus reducing the need for subsidies, a part of the contributions from PETRONAS can instead be directed to generate new sources of income.

15. PETRONAS profits have increased due to rising oil prices. Shouldn’t PETRONAS contribute more to absorb the cost of rising fuel prices?

Since its establishment in 1974 PETRONAS has made significant contributions to the nation’s development. During the financial year 2004/2005 it contributed RM31 billion in the form of taxes, dividends and royalties. This was an increase of 47% over the previous year’s contribution. This amount represents 53% of PETRONAS’ gross profits of RM59 billion for the year 2004/2005.

PETRONAS only controls 30% of the Malaysia retail petroleum market while the remainder is held by competitors like Shell, Esso, Caltex, BP, Mobil and Projet. This means that if PETRONAS were to subsidise fuel prices in full, it would effectively be paying these foreign companies too.

In Malaysia, PETRONAS owns 3 refineries with a combined capacity of 256,000 barrels per day (bpd), or 47% of the total national output. The remaining 53% is provided by refineries owned by Shell (155,000 bpd), Exxon-Mobil (88,000 bpd) and ConocoPhillips (48,000 bpd). As Malaysia consumes 520,000 barrels of oil per day, it is obvious that in order to meet this demand we need to rely on refineries belonging to international oil companies too.

PETRONAS also subsidizes natural gas in this country. This subsidy amounted to RM25 billion since May 1997. For the power sector, the price of gas is fixed at RM6.40 per Million British Thermal Unit (mmbtu) compared to the commercial price of RM25.70 per mmbtu. This low price has enabled Malaysia to maintain electricity tariffs at reasonable levels.

16. What would happen if PETRONAS were to use all its profits to provide subsidies?

PETRONAS is a business entity with domestic and international operations. If a substantial portion of its profits were used to provide subsidies it might be perceived as an irresponsible company, thus affecting its credibility. This could result in it being downgraded by international rating agencies.

PETRONAS’ primary role is to manage and preserve our country’s oil and gas resources. In order to achieve this, profits must be reinvested into exploration activities both domestically and internationally. In addition, profits should also be spent on research and development.

In the financial year 2004/2005 PETRONAS spent 61% of its total investments, or RM10.7 billion in exploration activities. If there are no new oil discoveries, Malaysia will become a net importer of oil by 2009.

Such investments in exploration have resulted in annual increases of oil reserves by 2 – 3% annually. Clearly, this would not be possible if PETRONAS uses all its profits for subsidies.

17. What options are open to the Government in addressing the increase in oil prices?

The Government has three options:

- To maintain the retail price of petroleum despite rising international market prices.

This would require the Government to increase subsidies and taxes forgone to match the rise in product cost, resulting in an even larger gap between subsidised and market prices of fuel. This would result in less money available for development and would impose severe strains on the Government’s financial position; or

- To completely remove subsidies and reimpose sales taxes; thus allowing fuel prices to be determined solely by market forces. If this is done, there will be no disparity between retail prices in Malaysia and world market prices. This option would allow the Government to use savings from subsidies to fund development. However, consumers would have to bear the full brunt of price increases and the Government might be perceived as being insensitive to their needs; or finally

- To gradually reduce subsidies; as has been done in recent months. This middle path involves the sharing of burden between the Government and consumer. In this option consumers pay slightly more for fuel while the
Government continues to provide subsidies. By increasing prices gradually, consumers will be able to adjust their expenditure accordingly.

The Government is of the view that the gap between domestic retail and world prices should be reduced gradually. From the three options listed above, the third is the best. The Government will continue to provide subsidies while the consumer contributes by sharing some of the burden.

18. What steps are the Government taking to encourage the use of alternative energy sources?

The Government is encouraging the use of natural gas vehicles (NGV). Incentives include:

o A discount of 50% for road tax of monogas vehicles and 25% for bi-fuel (diesel) and dual-fuel (petrol) vehicles; and

o Fixing the price of NGV at about half that of petrol pump prices.

The Government is also encouraging the use of renewable energy under the Small Renewable Energy Programme (SREP), for the generation of electricity under 10 MW using biomass, landfill gas and mini-hydro.

Hydroelectric power is being developed in Bakun which has a capacity of 2,400 MW. This project is due for completion in 2010.

The Government intends to introduce the use of green fuels such as biodiesel, using palm oil.

19. As consumers, what role can the rakyat play?

Following oil price increases certain traders may take the opportunity to profiteer. As such, the rakyat must be prudent and smart in their spending.

It is also good practice for shoppers and customers to compare prices and the quality of goods between shops prior to making purchases. Such buying habits will contribute directly to improved family finances.

Through prudent planning and spending, consumers will also prevent wastage.

The transportation sector constitutes 41% of energy consumption. With prior planning of trips, car pooling and the use of public transport, the expenditure on fuel could be reduced.

20. What measures need to be taken by the rakyat?

The rakyat should realize that Malaysia could be completely without oil in 19 years. Therefore, we must be prudent in our use of oil resources. We must find ways to reduce our dependency on oil and should be prudent in its use and avoid wastage. We should consider using alternative energy sources such as biofuel.

Some countries have already implemented radical energy conservation measures. Malaysians have to be prudent in their consumption of energy and should support the Government’s actions in energy efficiency and saving measures.

The Government will go down hard on irresponsible traders who profiteer from the current situation. Consumers can play a crucial role by reporting unethical practices by traders to the relevant authorities. Traders and businessmen on their part must be responsible and not exploit the public by raising the price of goods and services indiscriminately.