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5/05/2008

No subsidised petrol

There is no difference in the definition of subsidy between what we know here and what it is known in Malaysia. Both subsidises by making the buyer pays less from the market price. The Malaysians subsidise their petrol and we subsidise our flats and hospital bills. The difference is that the Malaysian petrol subsidy also allows foreigners like Singaporeans to take advantage of them. (We don't regard PRs as foreigners.) Now the Malaysian govt is thinking of abolishing this ruling. And foreigners buying petrol in Malaysia will have to pay non subsidised prices. That will make the petrol buying trips to JB unnecessary. It will also put an end to the Uniquely Singaporean 3/4 tank rule. So no one can continue to joke about it anymore. The best thing is that the jams at the causeway will be a thing of the past. It may be a little tough to the shopkeepers and restaurants that benefitted from the Singaporeans going over for petrol and at the same time enjoying the cheaper food and groceries. When the incentive of cheaper petrol is over, the hustle and the little savings may not be attractive enough anymore. Only genuine visitors going for holidays will be seen crossing the Johore Straits.

4 comments:

Matilah_Singapura said...

People respond to incentives.

Subsidised petrol will still be available. By prohibiting the sale to Thais and S'poreans, the Malaysian govt has just created a black market. Every petrol seller has but one incentive: to sell as much petrol as possible. Evry 'foreign' petrol buyer has an incentive: to buy cheaper petrol

Prohibition fails whenever it is tried by govts. It serves them right.

Subsidies invariably fail too.

Remember when the S'pore govt sold 'cheap' schoolbooks for the "valiant" effort of helping "needy" families? People in Mercs and BMW's were turning up to take advantage of the situation, turning the whole escapade into a collosal failure. Of course, the govt and its ball-lickers were quick to blame "greedy people", and ignore natural (economic) law which works all the time, without exception.

These sort of shams are going to continue to entertain us for a long time as long as govts are run by dumb arrogant motherfuckers,

Anonymous said...

> Remember when the S'pore govt sold
> 'cheap' schoolbooks for the
> "valiant" effort of helping "needy"
> families?

How about distributing child payments?

redbean said...

we need to suggest to them the concepts of loss leaders and incentives to attract customers.

as for child payments, not a bad idea. but the amount can be frightening. to bring a child to university is easily a few hundred k's provided the fees stop increasing.

and look at the kindergarten fees and tuition fees for school going kids, mine, they cost more to maintain than me. kindergarten can be $400-$500pm, excluding all other costs to bring up the child.

i don't spend that kind of money a month.

Matilah_Singapura said...

Well, the more subsidies you have, the more the prices (eventually) get driven up.

Economic law works all the time.

People turn to the govt for "help" when they bring children into the world.. in other words, they expect other people to contribute to the upkeep of their children... people who are forced against their will.

IMO, that stinks morally.

Anyway, back to fuel subsidies. In Indonesia The State is reeling under the cost of subsidised fuel. They are going BROKE. Ministers have reluctantly come out and admitted that its a failure.

But what happens if they take the fuel subsidies away? Probably riots.

No govt in history has ever had the interest of the people at heart for very long. If you believe the govt is really interested in your welfare, you need to wake up from your slumber.

If the Sg.gov really cared, they would CUT the tax on fuel. But no... it is too lucrative a cash cow. As the price of fuel goes up, so do the taxes as a proportion.