|
PRESS STATEMENT
MTUC & BANK UNION VERY ANGRY AT FUEL PRICES INCREASE
MAY
CALL FOR STRIKE
AS
USUAL, CONSUMERS PAYS THE PRICE
PETROL PRICES IN Singapore still Cheaper
Current Government not entirely to be blamed.
As
expected, consumers are made to pay the price of decades of failed
economic policies and mismanagement. The 78 sen increase in the price
of petrol now means that the price has increase by more than 300%
compare to 87 sen in May 2005.
Failed
economic policies include a suppressing of exchange rate to make our
country competitive (to favour exporters which are mainly oil & gas,
timber and oil palm. The government also suppresses wages by encouraging
the influx foreign workers
This fuel
increase will surely lead to another round of price increase from
anything and everything from Taxi fares to Bus fares, from cooking oil
to a packet of nasi lemak.
Our
experience point to the fact that in Malaysia, prices increase in
commodities and basic items always benefit businesses, not ordinary
workers. A classic example is that when the price of sugar increased by
10 sen a kilo, a cup of kopi also increased by 10 sen - as if you need a
kilo of sugar for one cup of kopi.
As a
result ordinary Malaysians simply cannot afford to pay market prices for
petrol. Already the prices of our cars and toll (due
to one sided deals signed with toll concessionaires) is among
highest in the world. Public transport is hopeless in cities and non
existent in the rural areas. People have no choice but to own cars.
Many owners have to take a nine-year loan just
to pay off a basic car and their car value is now less than the
loan outstanding
This is a
result of economic mismanagement that has marginalized the poor, created
billionaires and has income disparity that is the second highest in
Asia, behind only Papua New Guinea.
PETROL
CHEAPER IN SINGAPORE
Contrary
to government claims, Petrol is actually cheaper in Singapore, Japan or
even the US when we take into account one of the fundamental principles
when comparing prices across different countries - PPP - Purchasing
power parity.
Put it
simply, Singaporeans still pay much less for their petrol because
Singaporean workers earn Singapore dollars not Malaysian Ringgit. Even
in absolute terms, for example, a typical clerical employee in Singapore
earns SGD1200 per month compared to RM900 in Malaysia and 600 in
Sarawak. And Singaporeans only pay about SGD2.00 per litre
Per
capital of income of Spore is RM100,000.00. Malaysia is only $20,000.00.
Singapore does not produce a drip of its own crude oil.
Even in
Japan & US (even with their high cost and standard of living), you will
find the petrol price is relatively cheaper. Please note that minimum
wage in US is about USD4 per hour and a high school teacher makes at
least USD40, 000 a year. And petrol price there is only about 1.20 per
litre.
We should ask question as to why
the production cost, plus distribution cost, plus profit amount to 20%
of the pump price. Malaysia is a net exporter of crude oil. And
Petronas is rich enough to sponsor one of the most expensive sports –
Formula 1
We also
call on the government to give a full transparent and detailed
disclosure of the fuel subsidy. As well as the billions of profits of
Petronas, independent power producers and other oil companies, oil palm
and timber companies makes every year.
The government has forced the public to own cars by mismanaging the
public transport sector, inflicted a high prices for cars, burdened the
motorists with extensive toll roads and suppressed wages, now wants
market price for petrol.
UNIONS WANT SALARY TO GO UP BY 50%
Unions
now have no choice but to demand for salary increase of at least 50%.
Unfortunately employers are going to use the higher cost of business as
an excuse to NOT grant salary increases.
ANDREW
LO
SECRETARY, MTUC
CHIEF EXECUTIVE OFFICER, SBEU
5 June 2008
[back to top]
|