By Luk4all Editor

Posted 16th April 2008

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Comments:

My wish is the same. We have been going through a tough 50 years since independant. Time to clean up our act.
4/16/2008 2:47:01 PM | aveeno

The problem in this country is, many politicians are playing racism games to win supporters. The sad part is, many of their supporters thought that these heroes will really fight for them, but in reality, only a very very small group of their cronies are benefited from them. The rest are as poor as before. This is the real fact, that is why BR alliance are gaining a big win in the last GE.

My advice to those dreamers who think there is really a phalawan exist ,please open up your mind and see their monkey's tails behind ! They are nothing but just a monkey dance show. When the show ended, you paid for the entrance and get amuse for that short period, then back to the reality.

So, don't let the monkey dance, make the monkey goes up to the coconut trees and help you plug the coconut for you.

KL...Callum
4/17/2008 9:22:27 AM | Callum

no country can really prosper or live peacefully if the ppl is not united
4/17/2008 9:42:44 AM | ah seng

MY dear Tengku Faris,
Remember and rethink over this famous proverb,---DO NOT DO TO OTHERS WHAT YOU WOULD NOT LIKE TO BE DONE TO YOURSELF.
From Reserve army officer .
4/17/2008 2:04:52 PM | wata

dosh... we are getting nowhere with admiral of these kinds. they lead the ship back to their once upon of their dreams. well, reason are simple. behind all of these speeches, ***************************************** ~cheer
4/18/2008 7:29:02 PM | dleow

The Kelantan prince should not gave such a ***** comment to the Rakyat.This comment will destroy the unity which the Malaysian goverment always promote amongst the various races. The Hindraf 5 were detained in jail without any trial when they just simply handing a petition to the ruling goverment .Does a ***** on a person makes him above the law ? The Malaysian constitution states that every citizen is equal before the law.
4/19/2008 2:33:05 PM | amran

The crown prince or whoever wrote the speech forgot that in Malaysia, there are other bumiputeras apart from the Malays, namely the Kadazandusun-Muruts (KDMs) of Sabah, the Dayaks of Sarawak and the Orang Asli of Peninsular Malaysia. Oral traditions of the KDMs, for example, tell us that the Malays are from lands across the sea.
4/23/2008 8:50:28 PM | Jeffrey

we received many good and many emotional comment over this blog. We would like to applogise that we could not publish all of them or risk getting ourself put behind bars. Thousand appologies
4/23/2008 8:57:36 PM | luk4all editor

Root cause of world high cruel oil

World Population Growth – In 1800, there were only 800 million people on our planet. Another 100 years, (i.e. 1800-1908) to double to 1.6 billion. And for the next 100 years (to 2008), the world’s population increased more than 4-fold, to 6.7 billion. Estimate another 50 years, (i.e. 2050 somewhere there), will be close to 10 billion populations.

With the modernization of human race, the applications of crude oil (include its by products) is varies, more and more applications to come. And crude oil is a depleting natural resource. It takes millions years to become crude oil, isn’t it.

Growing economies – China, India, Russia, Brazil and their spills impact to other world economies. Can the world “blame” these countries or people of these countries? The answer is no.

Currently it is estimated that the richest 20% of the world population (namely American, European and Japanese) consumes 80% of the world natural resources.

Besides, these 4 countries currently their demand of fuel energy is not more than one third of world’s consumption (on top of Russia is a net exporter of energy resources to world); a projection in next 20 - 30 years will only overtake demand of developed countries.

So what are other main causes then.

So, they left with 2 – weakening US$ and speculation.

When cruel oil was priced around US$28 a barrel back in Jan 2004, EUR 1 was equivalent to US 1.25 dollar. Today, US$1.55 is equivalent to a Euro dollar. Prior to that, one could remember a Euro was less equivalent value than a dollar ! Then, tag a barrel to a Euro dollar instead of US$. I guess this may not be done easily, besides, US is the largest cruel oil consumer.

Currently, no countries step out and shout US government to timely bulk up her economy. In the last 2-3 years, US government has planned and is working for a weakening dollar fiscal policies (i.e. cutting interest rates), with the only motive is to stimulate and withhold its country diminishing economy, but, ignorance of the impact to the world.

In short, or put into a better words, any US fiscal policies implementation will “promote” or “hurt” world economy, good or bad.

Next is the hot speculation of cruel oil moving average price.

It cannot deny it is a free capital flow of financial markets and an approach of hedging tool. However, the mechanism behind is purely work for profit taking motivation. The key to this is a process of creating “forces” or “pressure” or “expectation”.

In a layman term, we all know inflation is driven by prices. Prices at large are determined by the purchasing cost of local gasoline - energy required to sustain and move social-economy of a nation or an economy.

Today, none of an economy is not dependent on energy source. The increasing usage of new energy resources (e.g. solar, wind, bio-fuels, etc.) is unlikely to fully solve all and more costly.

And then, no governments would like to have a high inflation rate in its social-economy model as this will bring unstable of a nation. So, they introduced programs of subsidy.

This chain (to have a low inflation rate) can then translate into an “expectation” of people; a “pressure” to maintain by ruling governments; and a “forces” of motivation to speculate, by international traders.

So, when this chain repeats and get accelerated, the impact is growing bigger and bigger. The outbreak of strikes, anger, and protests by people is a POSITIVE sign to these traders. With more to come, I beg the higher speculated future cruel oil would be, despite Saudi Arabia has called upon that there is sufficient cruel oil reserves and promised extra production.

Then, what are NEGATIVE sign to these traders, so that they believe price will expect or speculate to come down:

1. announcement of recovery sign of US economy and strong US$.
2. announcement of alternative energy sources via governments’ sponsorship/encouraging policies or implementation.
3. announcement of OPEC/world leaders to combat this situation.
4. rationale and acceptance of people, changing the way of life
5. large investment of public transport, fuel efficiency infrastructure.
6. Large Green efforts, and technology breakthrough.
7. Do away of governments’ fuel subsidy, one by one, particularly, China, India, and Brazil do away of subsidy.
8. and many more.

Eliminate Fuel Subsidy - M'sia

Whether rationale or not, one would have to look at world economy of high fuel energy cost environment, the degree of depletion of national oil resources, applications of its net proceeds, transition impact to social-economy and subsequent fiscal approaches and policies to mitigate and transform.

Lately with a barrel price reached US$139, the exclusive high price of world fuel economy has begun, not only to one nation, and to the globe. Governments are exploring national policies to adjust, transit, combat situation and take the situation advantages to its nation in the long run.

Where time of exclusive high energy fuel cost has come, the fundamental of world and nation economy has changed. A change that the globe and each governments have to take in consideration in building its social-economy fundamentals.

M'sia is a typical nation of export: assembly-electronics, agricultures and natural resources.

As for a start, one would assume M'sia government abolished subsidy fuel has considered all its causes, politically or non-politically, and with or without BN won handsomely M8 election, the plan to have subsidy away is inevitable.

Why ?
The country fuel reserve is depleting, day by day. With high fuel cost world environment, continue subsidy policy may not be a logical fiscal policy, and will submerge, depress a local economy and suffering eventually to all M’sian, one day.

With subsidy, inflation is "controlled" (economically not based on demand and supply), thus, local price-productivity will be at a price error, "lower" export cost, "deflated" wages of goods and services, imagine every part of the world would love to buy goods and services from M'sia, however, in the long run, M'sia is "financing" these countries with subsidy of its own national resources. And, also, the level of salaries and wages will not adjust accordingly.

M'sia prices and productivity are not measured equivalently and not competitively (competitive does not mean cheap or lower) to the current globe fuel prices, cost of production is arbitrated at RM1.80 compare to RM2.80 (or higher) that the world should pay for, to M'sia. Furthermore, M'sia will pay for importation at higher than RM2.80 from the rest of the world.

A good fundamental economy is an open, equitable, transparent, market-driven, value realization and will take its own course, absorbing and diverting away strengths and weaknesses without much arbitrations.
Transition impact to the social-economy, its timing and approach.

One would argue that the people is suffering of the hike, unconsciously and painful. Indeed they are. A hike of fuel price is not welcomed at all! M'sia and the world.

However, the timing of transition and approach to implement is absolutely least wise of timing, a failure to BN governments as nation was not tactfully and fully informed.

A more formularized timing of change is during an active and growing economy, a stable government and nation (to avoid politicize, arguments are not solely based on academically and scientific), and parallel implementation and subsequent assistance programs (elaborate next).

What are then subsequent assistance fiscal programs available?

Well, to activate a local economy to next high level and absorb the hike prices, eliminating suffering, there are many approaches to do so.

In large, one of the direct fiscal approach is increasing fiscal investment in the country, either through foreign direct investment, government spending, or increased level of local consumption, etc. While foreign direct investment is limited to a less stable political and friendly environment, M'sia has left with 2 options, that is government spending and increased level of local consumption.

How?
Applications of net proceeds of fuel is critical. Government is required wisely planned and announced assisted programs and employ to whole nation ASAP. Whether been announced or to be announced, these assistance programs, its effectiveness to all levels of social-economy and transparent is the key of success.

Government spending programs are intended to increase level of economy activities, creating infrastructure and long term impact (like enhance coverage of public transportation map); more jobs, pay for higher productivity, adjust salaries and wages, enhance ability to level-play with world and could afford to absorb even higher fuel energy cost environment when time come, and generate higher tax revenue...

If a cut of fuel subsidy, releasing of net proceeds is to channel and benefit only political cronies, the worst will come, indeed. The opposition parties are required to watch-dog these implementations.

Also, prudence government expenditure spending policies (expense nature, like cutting ministers’ allowances, trip expenses, etc), the effect is not great, not a solution to fundamental economy, however, it helps.

Next, increased level of local consumption

I will predict a wise government (although M'sia government in my personal opinion is not relatively smart enough) would implement relief policies; like a refund of individual income taxes (or other form of rebate/other subsidy plans), as to relief the transition pain suffer by the raykat.

Examples recently, US, Singapore, Macao, HK, Korea, Australia, and many more countries, although not all its original root cause was initiated by high fuel prices, but the intended purposes is to safeguard social-economy structure (reduce financial burden and damages) and stimulate local economy consumption (sustain and stimulate economy activities).

M'sia has to face a reality of high fuel energy cost; depleting of oil reserves, large dominant and unstable social-economy, and would have to embed these facts to equalize the connectivity of globe economy while minimize the impact of transition via creating sound fiscal policies, benefits as many population, install correctly their fundamentals and long run competitiveness as to compete with globe.

Thus, in short, transition, mitigation and transformation fiscal policies, a bias fiscal policy to be would not benefits in long run, but in turns will bring down a country, at last.

Next, a change of way of life, are we ready??
Will write on this next.........to be continued.
6/20/2008 7:49:52 AM | BJ

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