Press Statement
by Lim Guan Eng

(Petaling Jaya, Tuesday): Prime Minister Datuk Seri Abdullah Ahmad Badawi must explain how the RM 4.4 billion fuel subsidies savings will be distributed to the various states to benefit the people and help to reduce the inflationary effects of the fuel hike. Sarawak Deputy Chief Minister Tan Sri Alfred Jabu had announced that Sarawak plans to bid for 10% of the RM4.4bil saved through reduced fuel subsidies to help people in the state who need help to pay for petrol and diesel.

He said that RM 440 million would be used to help seven groups namely, bus and taxi operators; express passenger boats operators; operators of Lorries carrying essential foodstuffs, fishermen, farmers   and longboat operators. If Sarawak can bid for 10% of the RM 4.4 billion in fuel subsidies savings, then other states requiring assistance can also do so. This raises the question of how the savings are to be distributed to other states.

DAP regrets that despite the promises that transport fares would not go up, local bus fares have already gone up. Yesterday Transport Minister Datuk Seri Chan Kong Choy announced that the fuel surcharge for domestic flights for MAS has been increased

- RM36 (from RM15) for flights between the peninsula and Sabah and Sarawak; and,

- RM15 (from RM7.50) for domestic flights within peninsular Malaysia, Sabah and Sarawak.

Such false promises have further diminished public confidence in the government’s commitment to stop prices from rising or to use the fuel subsidy savings for the people benefit. What is the point of rejecting MAS request to increase its fare by 10% when fuel surcharges are increased?

The best solution is to distribute Petronas tens of billion profits to the people so that they can use such monies directly to reduce their financial hardships. The government has a moral obligation to distribute Petronas profits as such oil revenue belong to Malaysians. Malaysians can get nearly RM 2,000 ringgit each should the profits be distributed. For 2004, RM 35.5 billion in Petronas profits would amount to RM 1,500 per person.

If a non-oil exporter like Singapore can give S$2.6 billion (RM 6 billion) cash to all Singaporeans, especially the poor, why can’t the Malaysian government do so when Petronas has earned nearly RM 500 billion since its inception in 1971? Oil importer Singapore has given $10.675 billion (RM 24 billion) directly to its people since 2000.

Why is it that Malaysians have not received such grants directly even though we are rich in natural resources until we can export oil.According to government estimates and answers to DAP MPs in Parliament, Petronas has earned RM 500 billion in profits since it was established in 1974. The natural question that Badawi must answer is how come Malaysians can not get a single cent directly from the RM 500 billion oil profits whilst Singaporeans without a single cent of earnings from oil revenue can benefit from RM 24 billion these last 5 years? Clearly it is important that Malaysians seek accountability and economic justice from Malaysians to prevent all our oil revenue from being misused by the select few.

(21/03/2006)