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Distributing Petronas Yearly Pre-Tax Profits Of RM 70 Billion Equally And Channelling 30,000 More Policemen To Fight Crime Are Primary Concerns For The Ordinary Malaysians That Can Change Their Lives For A Better Tomorrow.


Media Statement

by Lim Guan Eng


(Parliament House, Friday): The BN government has the people’s mandate to use the 2007 Budget to determine the political and economic directions but it should not renege on its public duty to directly benefit the people, reduce their hardships as well as provide a safe and secure neighbourhood to live, work, study and do business. The time has come for the Budget to have a positive impact on  the lives of Malaysians not necessarily in terms of benefits but also in dealing with the costs in line with the concept that rights carries responsibilities just as entitlements requires obligations.

 

For too long the Budget appears “disconnected” from the people’s lives, seeing it more as a necessary evil in higher taxes or payment than in getting any real economic benefits. Witness the mad rush for passport renewals following rumours of a hike in passport fees from the present RM 300, one of the highest in the world. It is sad that the Budget appears relevant only to the big time businessmen and bankers leaving nothing for the “ordinary bloke in the street”.

 

Sadly this tradition of the Budget for the big boys and nothing for the “ordinary bloke in the street” will be repeated in the 2007 Budget. We all know the 2007 Budget will be expansionary, but will it be another Mahathir budget of breathless mega projects on the scale of turning our government administrative centre into a veritable Disneyland?

 

For this reason DAP does not wish to react to the Budget 2007 today except to regret its complete lack of relevance and import to the “ordinary bloke in the street”. To have meaningful changes in the lives of Malaysians, DAP urges the Prime Minister and Finance Minister Datuk Seri Abdullah Ahmad Badawi to initiate a paradigm shift.

 

First Malaysians must enjoy real benefits from the country’s economic development. Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said on Aug 30 that the country economic growth for the second quarter this year was 5.9% higher than the revised 5.5% for the first quarter. If conditions are so good, why is there no pay rises, companies like MAS are making losses, and so many retrenchments are going on?

 

Inflation for the first half of this year was almost 4% higher than the 3% last year. The impact on price increases and poor economic conditions can be seen with the increasing crime rate where students are murdered in the streets for a few ringgit.

 

DAP’s urges the government to allow Malaysians to enjoy the benefits from the natural resources by distributing the profits earned by Petronas. Since Petronas was formed in 1974, its earnings have exceeded RM 500 billion as compared to Singapore which does not have a drop of oil. If a non-oil exporter like Singapore can give S$2.6 billion (RM 6 billion) cash under the 2006 Budget to all Singaporeans, especially the poor, why can’t the Malaysian government do so when Petronas has earned nearly RM 500 billion. Oil importer Singapore has given $10.675 billion  (RM 24 billion) directly to its people since 2000 as compared to Petronas which has not given a single cent.

 

This year its pre-tax profits hitting RM70.2 billion jumped 21 per cent compared to RM58 billion in the previous financial year ending 31 March 2006. Net profit rose to RM43.6 billion from RM35.6 billion. To get an idea of Petronas' size, the net profit of Malaysia's largest listed company, Malayan Banking, was just RM2.5 billion. This year alone, the oil company has paid the government a total of RM41.7 billion - equivalent to what it would take to build 23 Kuala Lumpur City Centre (KLCC) complexes, including the Petronas Twin Towers.

 

Instead of taxing Petronas, DAP suggests that the pre-tax profits be distributed to every Malaysian to a maximum of RM 2,000 each with the remainder given to Petronas for capital investment purposes. If an oil importer Singapore can give tens of billions to its citizens why can’t an oil exporter like Malaysia do so.

 

Distribution of Petronas revenues would allow the people to bear the burden of price rises. No one would complain if the government cuts fuel subsidies and all subsidies to allow Malaysia to face world market prices. This would also benefit Malaysians by improving our efficiency and productivity.

 

Improving economic conditions would also help to fight crime, the greatest threat to safe and secure neighbourhoods to live, work, study and do business. However to effectively contain crime, the government must not only be “tough on crime and tough on the causes of crime”, it must also be tough on failures to stop crime.

 

The increasing crime rate is caused also by the lack of professional attitude by the police and lack of police personnel employed to fight crime. Violent crime has increased from 21,604 cases in 2000 to 22,133 cases in 2005. The cost involved is a horrific RM 15.3 billion in 2004 alone according to then Deputy Internal Security Minister Datuk Seri Chia Kwang Chye!

 

How can the violent crime rate not go from bad to worse when out of the 90,000 police personnel nationwide, less than 10,000 is employed to fight crime. The public has angrily asked what are the remaining more than 80,000 police doing if not to fight crime. Isn’t the main duty and function of the police to fight crime?

 

The government should increase the motivation of the police to fight crime by increasing their salaries by at least 50%. This would also help to reduce the rampant corruption in the police force. At the same time, the 125 recommendations of the Royal Commissin of Police, especially the establishment of the Independent Police Complaints and Misconduct Commission(IPCMC) must be immediately implemented.

 

More policemen should be employed to ensure that there are AN EXTRA 30,000 more policemen patrolling and fighting crime on top of the present 10,000 policemen fighting crime. Such an effort may cost billions but if successful, is worthwhile as compared to not only the RM 15.3 billion losses from crime but also the sorrow from the tragic injuries and horrific deaths involved.

 

By distributing Petronas yearly pre-tax profits of RM 70 billion equally and channelling 30,000 more policemen to fight crime are primary concerns for the ordinary Malaysians that can change their lives for a better tomorrow.

(01/09/2006)


* Lim Guan Eng,  Secretary-General of DAP

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