Ideas and views on how to regain control of national assets should be invited from all.
Even if not adopted in full, the contribution in part or in spirit would still be positive for Malaysia …
In a move aimed at pacifying commuters and consumer groups, Prime Minister Abdullah Ahmad Badawi has stepped in, promising a cabinet review of the proposed toll rate hike on five of Malaysia’s biggest highways.
”People are having difficulties. The situation is not right for a toll hike,” Abdullah said. The cabinet will be meeting today.
Citing contractual obligations to the concessionaires, Works Minister Mohd Zin Mohamed had announced hikes of between five and 33 percent on the much-travelled North-South Expressway, Sprint Highway, Ampang Elevated Highway, Sungai Besi Highway and New Pantai Expressway.
The move was immediately panned by analysts, who worried the increased cost burden to consumers would create a wider negative knock-effect on the fragile economy, just starting to taste its first bite of what is clearly going to be its worst crisis ever.
It also shunted attention onto the concession agreements, which were signed during former prime minister Mahathir Mohamad’s time in power. Recently declassified, these agreement had thrown up huge question-marks as to whether Mahathir’s administration had intended to benefit the Malaysian public or the firms that owned the concession operators.
Past legacy must not be allowed to be perpetuated
As his protege, finance minister and deputy premier Najib Abdul Razak prepares to succeed Abdullah, there is growing fear that Najib too will perpetuate the legacy of mega projects and privatisation deals favoured by Mahathir and his adviser Daim Zainuddin.
“Tolls have been going up and up. The burden on the people is always looming. Given this scenario, it is best that the federal government seriously review all concession toll road agreements and re-nationalise where possible,” said Azrul Azwa, economist at Bank Islam.
Pakatan Rakyat leaders and consumer groups have been urging Najib to re-negotiate toll deals to prevent Malaysians from being held ransom to exorbitant charges, but their appeals have fallen on deaf ears.
For example, the DAP has already unveiled a proposal that if properly implemented could make the North-South Expressway toll-free by 2016.
Selangor Menteri Besar Khalid Ibrahim too has challenged federal authorities over the price to be paid to buy over the state’s water assets from four major consortia, who have thumbed their noses at his RM5.7 billion offer.
That has not stopped Pengurusan Aset Air Bhd - a unit of the Finance Ministry - from offering these firms a higher price and a widely speculated yet-to-be-disclosed sweetener to one of them - which purportedly has links to Umno. If accepted, Selangor people can expect higher water costs in the future, although it may be smoothened out in the immediate term.
Good intervention but deeper revamp is needed
Whatever his reasons behind this U-turn, Abdullah can expect some praise for intervening. However, the applause will be short-lived unless he insists that Najib undertakes serious and transparent revamping of all the toll road concessions.
“The situation has now changed, and the economy has not become better as yet, which was why we recently decided to introduce the second stimulus package or the mini-budget. I feel that this matter needs to be discussed again in the cabinet,” said Abdullah.
“The decision may come in the form of measures that will included in the second stimulus package or through some other measures. I think that’s the best we can do - do a review and decide on whatever that is appropriate.”
The BN media has already tried to deflect public opinion by attributing the criticism to Pakatan groups, yet BN lawmakers have just as vocally condemned the increases.
Some financial papers too have argued that ownership of these concession-holding firms have long changed hands and may not be linked to Daim or Mahathir or Najib anymore.
It is hard to say given that many of the restructuring deals undertaken in recent years, even by the largest government-linked companies, were transacted more with the intention to benefit their own top management and corporate bankers with fat fees and kickbacks, rather than to really make the firms leaner and meaner for the ultimate benefit of Malaysian consumers.
Perhaps the best way forward for the country is in proposals and initiatives such as those put forth by the DAP and Khalid, where the emphasis is on transparency and simplicity and the purpose is to benefit all Malaysians - not just a select few.
With so much talent among the professionals, ideas should be wooed and views welcomed from all. Even if not adopted in full, the contribution in part or in spirit would still be positive for Malaysia.
In fact, as the nation prepares to spend unprecedented billions in the name of economic recovery, it particularly behoves the Malaysians who are educated and skilled to keep a look out on what is happening and insist that the future of all in this country is protected and not siphoned out.
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