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Thursday, February 4, 2010

Fuel subsidy scheme has many loopholes

UNDER the new fuel subsidy scheme to be implemented on May 1, all vehicle owners are to receive a fixed amount of petrol subsidy irrespective of the number of vehicles they own or engine capacity of their vehicles. Motorists who do not own any vehicle will not enjoy the subsidy.

This selfish programme is a mockery to our society. I am sure the person who recommended it to the Government does not really understand our Malaysian culture and living environment.

For example, an executive buys a car for his retired father and since the father is not eligible for a hire-purchase loan, the car has to be registered under the executive’s name.

Meanwhile, this person also buys another car for the sister who is a college student and as she is still studying, she is also not eligible to borrow from the bank. As such, this car has to be registered under his name again.

The scenario indicates that a single owner is now having three cars under his name but the proposed programme for fuel subsidy may mean that there will be no subsidy for the father and sister.

Further, there are far too many loopholes in this proposed scheme.

What about organised groups trading on registration cards for written off cars, very old cars (maybe 30 to 40 years old) and stolen cars? What about fraud registration of cars to fulfil the fuel subsidy programme? Last but not least, what about the thousands of cars running around without current road tax?

There are ways around these loopholes. It is best if we either completely scrap the fuel subsidy and float the fuel retailing price like in North America or introduce a fool-proof programme fit for our Malaysian society.

I am in the know of a particular Malaysian business consultant having this fool-proof and non-monopolised programme.


Subang Jaya.

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