PSM: SUBSIDY CUT = EXPLOITATION

19 JULY 2010

SUBSIDY CUT = EXPLOITATION

Parti Sosialis Malaysia (PSM) views the recent price hike of three types of fossil fuels, sugar and cooking gas as a continuous neo-liberal agenda of Najib’s BN which will effectively have a two prone effect on the rakyat. It makes little sense when the government acknowledges that 75% of the Malaysian households are earning below RM3,000 while 25% earning less than RM1,000, yet no alternative plan was implemented to ease the hardship of these population   prior to cutting the subsidy. Obviously, the subsidy cut is a recipe to exploit the rakyat for the well being of a few.

1.      Raises price of basic goods which will create chain reaction and create inflation

2.      Punish the poor further by increasing the income gap between the rich and poor. It must be noted that while the Government does not want to commit to a minimum decent living wage act but its commitment to the neo-liberal agenda seems uncompromising as the Government want to cut down on subsidies and introduce the GST soon. The majority Malaysia workers would continuously face hardship with the current government’s plan to attract FDI by competing with Vietnam, China, Indonesia and India which means cheap labour policy will stay.

Najib’s view that the price hike will have minimum impact and money saved from this will be used to help the poor and infrastructure is yet another hollow promise because the BN Government has been consistent in the following:

1.      Unable to enforce price controls

2.      Has been spending leisurely the rakyat’s money without any sense of accountability

3.      Unable to curb corruption

4.      Unable to build a proper public transportation system as promised previously

PSM views these measures as sheer exploitation and will further burden the rakyat especially the lower and middle income group.

The neoliberal capitalist system is a system designed to make the rakyat pay for everything with very little state intervention. That is why Najib has said that the private sector will be the main driver to make Malaysia a fully developed nation in his tenth Malaysian Plan. The neoliberal capitalist agenda is yet another venture to make the capitalist and transnational’ super rich in the expense of the well being of the people.

It is these policies which are creating havoc to the livelihood of people in Europe – Greece, Spain, Portugal etc.  The continues move by Najib in pursuing this neo-liberal capitalist agenda is a recipe to bring down our economy in the long run. The rakyat must oppose this because their lives are at stake if we go on with these so called reforms.

Our economy has been fundamentally strong without subsidy cuts. Today 53 years after independence we face a problem because there is a crisis in capitalism and this is added with a crisis of good governance in Malaysia – This must be stopped unless we prefer to go downhill. It is time to oppose the BN’s capitalist agenda as it endangers our well being and livelihood.

Released by

S.Arutchelvan

Secretary General

Tel _019-2537791

Protest against price hike to be launched July 28

Abdul Rahim Sabri, Jul 18, 10,  2:23pm Malaysiakini

The anti-fuel hike protest movement (Protes) will launch their campaign against the govermenment's move to raise petrol, diesel, sugar and liquified petroleum gas this July 28.

The launch will take place at the Kuala Lumpur-Selangor Chinese Assembly Hall, Protes coordinator Dr Hatta Ramli (right) told a press conference today after a meeting with other Protes leaders on the matter.

“On that day (July 28), we will arrange the activities such as the distribution of pamphlets and information and the dates of the nation-wide road show.

“We will also propose a date for the demonstrations that will be organised,” said Hatta.

Asked whether the demonstration would be held during the fasting month of Ramadan, Hatta said: “If possible, we want to hold it soon. We cannot delay it too much,” he added.

Hatta said the demonstration will serve as the culmination of the campaign against the price hike.Others present at the meeting included PKR strategy director Tian Chua, PSM secretary-general S Arutchelvan, PAS Muslimat secretary Aiman Athirah, and representatives from human rights group Suaram student activist organisation Dema.

According to Hatta, the plan to hold demonstrations follows the 'success' of the protests against the issue of maths and science being taught in English (PPSMI) as well as the sports betting issue.
Hatta, is also PAS treasurer, said efforts will be made to get the involvement of many more NGOs to work together with the Protes coalition to campaign against the price hikes.
"We will mobilise NGOs, workers unions and students," he said.
Protests will also be held nation-wide, especially by those affected by the increase of prices such as low-income earners.

The Kuala Krai member of parliament said the fuel and food price hikes should not have been carried out merely to save RM750 million and bear the costs of 1Malaysia clinics and the Permata educational programs of the prime minister's wife Rosmah Mansor.
Arutchelvan (right) said the effects of the price hikes will be felt by the people within a few weeks, especially during the upcoming festive season.
Tian Chua said the hikes serves as the beginning of an increase in prices of other basic necessities and will lead to more subsidy cuts.