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2 weeks ago | Report Abuse
Theory of Comparative Advantage, Economic Linkages and International Trade has long proven track records and has transformed the world economy for centuries. The colonials exploited them to become developed nations through international trade and colonial outposts. Post colonialism, global south has benefited from these theories through WTO, FTAs, multi-lateral international trade etc.
Grants, Subsidies, Social Capital Redistribution, NEP etc aren't bad policies. They are tools that has been used and exploited for centuries by colonial masters, and subsequently copied by global south to better their economies. Look at US Midwest for example, USDA has pump in subsidies for decades and they have benefited the whole world because of economics of scale and distributed free food aid to whole world through USAID. They cap food costs and inflation. Midwest community is only less than 1% of US industries but supply whole USA and whole wide world. This is comparative advantage, not subsidy.
Malaysia is endowed with natural gas, petroleum etc and gave rise to Petronas. This is our natural endowment. It gave Malaysia comparative advantage and Petronas has led to Malaysia enjoying cheap electricity, fossil fuels etc. So long as Petronas continues to print huge amount of profits, and ensuring Malaysia electricity and fossil fuels remain cheap, that is not subsidy. Why??
Malaysia has this natural endowment or comparative advantage. Our policies has been extremely good. It gave us comparative advantage in many industries that has boomed over the decades from this natural endowment, not subsidy. Glove, glass, petrochemical, logistics industries sprouted because of cheap natural gas. Many industries sprouted because of cheap electricity. Data centres is amongst the latest. Another comparative advantage Malaysia has is human resources. Foreign actors exploit these poach our talents so that they can level the playing field to Malaysia disadvantage.
So long as the net wealth creation is greater than the so call subsidy by the nation, it is not subsidy like USA Midwest case.
Targeting B40, M40, T15, T20 is bad policies as not any one group would be happy being targeted. If the government felt that diesel, RON95 subsidies are a burden, then I don't think so, because Petronas dividends is greater than these subsidy from the policy. Because of foreign interference, they want to level the playing field because they have comparative disadvantage, then Malaysia should ignore them.
The best way to exit fossil fuel subsidy if the government thinks that's the way forward is the let the crude oil market does its work. When fuel oil was below USD20 per barrel last decade, Malaysia government could have exited the subsidy then and create zero damage to Malaysia industries and economy. So lets wait for the next crude oil market crash and plan this subsidy exit could be a way forward. Less damage to the economy, commnunity and political unity
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2 months ago | Report Abuse
DC mania bubble is finally popped! ....
Because AI = new upgrade Chat Bot + new upgrade search engine for data.
It's still a hype ... how to monetize is a big question just like metaverse
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Stock: [TOPGLOV]: TOP GLOVE CORPORATION BHD
19 hours ago | Report Abuse
Trump is back, Tarriff is on the table, 10% tarriffs for imports from all countries and 60% tarriffs for imports from China. OEMs will have to pay all these tarriffs at point of imports. Come come come, come to Malaysia ...