Monday, February 02, 2009

 

Raise fuel subsidy for transport operators


Monday February 2, 2009
Raise fuel subsidy for transport operators

WHILE the Malaysian Government is planning its second economic stimulus package, it should consider ways to increase the spending power of consumers in the low-income group.

Many countries in the region are giving coupon vouchers as cash assistance to consumers.

The proposal to increase the public transport fare to address the rising cost of operation must be revised to consider increasing fuel subsidy as a solution at current situation.

Malaysia can increase fuel subsidy to public transport operators and slash the fares.

This will help the operators burdened with increasing operational cost, as well as provide savings to consumers in the face of rising costs of daily needs and sustain consumer consumption.

Also the mechanism to manage the fuel subsidy is already in existence and the Government only need to allocate the funds required.

The subsidy must be provided together with a timeline for the operators to comply with the service level set by the Committee on the Improvement of Public Transport under the Economic Planning Unit (EPU) in the Prime Minister’s Department over the next three years.

This will achieve the three-prong target of priming the economy, providing part of the social safety net and improving public transport, which may not happen with increased fares.

MUHAMMAD SHA’ANI ABDULLAH,
Secretary General,
Federation of Malaysian Consumers Association.

Comments: Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?

Bloggers United

Justice will come when it is deserved by our being and feeling strong. - Gandhi