Fuel price hike: Some big projects to be reviewed
By : Adie Suri Zulkefli, NST
June 9, 2008
Tan Sri Nor Mohamed Yakcop says payments will be speeded up.
TASEK GELUGOR: The government is looking beyond restructuring the fuel subsidy to improve economic efficiency, including reducing the expenditure of government agencies.
By : Adie Suri Zulkefli, NST
June 9, 2008
Tan Sri Nor Mohamed Yakcop says payments will be speeded up.TASEK GELUGOR: The government is looking beyond restructuring the fuel subsidy to improve economic efficiency, including reducing the expenditure of government agencies.
ome mega projects will be reviewed in favour of more people-centric programmes, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.
He said the projected savings following the fuel subsidy cuts were depleting fast due to the rise in global crude oil prices. The savings of RM13.7 billion were expected to shrink.
"When we did the calculations, the crude oil price was US$125 (RM404) per barrel but as of last Friday the price has increased further to between US$136 and US$138 per barrel.
"The increase will cost the government an additional RM4 billion for the entire fuel subsidy budget," he said.
Nor Mohamed said the government was looking for an alternative mechanism to speed up the distribution of the subsidy payout to small car and motorcycle owners.
To mitigate the 40 per cent hike in fuel prices last Wednesday, the government announced payments of RM625 for small capacity vehicles and RM150 for motorcycles below 250cc.
The payments would be paid via Pos Malaysia upon renewal of vehicle road taxes.
"We hope to make an annoucement on the alternative mechanism soon," Nor Mohamed said.
Without the restructuring, he said, the government would have had to spend RM33 billion for the fuel subsidy this year.
He said apart from subsidies, the government was also aiming to reduce other expenditure. He proposed that government agencies cut down spending by using government facilities rather than private premises wherever possible.
He said the government was also improving the public transportation system and extending the social safety net to cover more of the poor and disabled.
Nor Mohamed, however, said projects in the pipeline for Penang would not be immediately affected by the government's austerity drive.
Nor Mohamed, who is also Tasek Gelugor MP, was speaking at his service centre in Sungai Dua here yesterday.
Also present were Permatang Berangan, Sungai Dua and Teluk Air Tawar assemblymen Shahbudin Yahaya, Datuk Jasmin Mohamed and Datuk Jahara Abdul Hamid.
Nor Mohamed said a blueprint, called "Tasek Gelugor Maju", was being drawn up to develop the constituency.
He said it would be a blend of short-, medium- and long-term projects, consistent with the Ninth Malaysia Plan and Northern Corridor Economic Region.
He said the projected savings following the fuel subsidy cuts were depleting fast due to the rise in global crude oil prices. The savings of RM13.7 billion were expected to shrink.
"When we did the calculations, the crude oil price was US$125 (RM404) per barrel but as of last Friday the price has increased further to between US$136 and US$138 per barrel.
"The increase will cost the government an additional RM4 billion for the entire fuel subsidy budget," he said.
Nor Mohamed said the government was looking for an alternative mechanism to speed up the distribution of the subsidy payout to small car and motorcycle owners.
To mitigate the 40 per cent hike in fuel prices last Wednesday, the government announced payments of RM625 for small capacity vehicles and RM150 for motorcycles below 250cc.
The payments would be paid via Pos Malaysia upon renewal of vehicle road taxes.
"We hope to make an annoucement on the alternative mechanism soon," Nor Mohamed said.
Without the restructuring, he said, the government would have had to spend RM33 billion for the fuel subsidy this year.
He said apart from subsidies, the government was also aiming to reduce other expenditure. He proposed that government agencies cut down spending by using government facilities rather than private premises wherever possible.
He said the government was also improving the public transportation system and extending the social safety net to cover more of the poor and disabled.
Nor Mohamed, however, said projects in the pipeline for Penang would not be immediately affected by the government's austerity drive.
Nor Mohamed, who is also Tasek Gelugor MP, was speaking at his service centre in Sungai Dua here yesterday.
Also present were Permatang Berangan, Sungai Dua and Teluk Air Tawar assemblymen Shahbudin Yahaya, Datuk Jasmin Mohamed and Datuk Jahara Abdul Hamid.
Nor Mohamed said a blueprint, called "Tasek Gelugor Maju", was being drawn up to develop the constituency.
He said it would be a blend of short-, medium- and long-term projects, consistent with the Ninth Malaysia Plan and Northern Corridor Economic Region.
