Perbanyakkan Bas Untuk Atasi GST Kata MP Dap.

DAP MP Liew Chin Tong has proposed that Malaysia buys thousands and thousands of buses and it will solve our budget deficit and "economic woes" by reducing our yearly fuel subsidy bills and hence eliminate the need to implement GST. http://www.malaysiakini.com/news/275715

"The fuel subsidy is RM29 billion for 2014. It can pay for many buses for many years, and, among other things, delay the need to implement GST" said Liew.

I had always thought Liew to be one of the more intelligent DAP leaders and perhaps DAP members also thought the same as he got the highest votes in the last DAP CEC and beat out Lim Guan Eng who came in at a lowly 5th place.

Now, I know I was wrong to think like that. Liew Chin Tong's "economic solution" is as simplistic and as illogical as any DAP leader. Very Forrest Gump indeed.

Firstly, the problem with public transportation is low ridership and not because of not enough buses. Which is why one of govt's NKRA is to increase the ridership by instituting reforms to change people's mind-set towards public transportation and where they stay and live. 

Since PEMANDU started with this initiative, the share of commuters in KL using public transport has only increased from 17% to 21% only and still far from their 40% target. http://tinyurl.com/l4xqpvf

Also, YB Liew may not have noticed the many MRT construction sites in KL at the moment and the many new buses and KTM coaches being added over the last few years. Therefore, govt is adding to public transport options as and when more commuters are using it.

The problem is our mind-set of using public transport and also our low petrol prices and low parking intra-city fees. And despite high car taxes at the higher end models, the majority of cars still remain affordable in Malaysia with a basic RM30-40k car costing just RM300-400 per month in installments - or about the price of a legal pack of cigarettes a day.

Secondly, I would also like to remind MP Liew that Malaysia is just not KL and Penang or Johor Baru alone where you have the economies of scale to have more buses. Are we also going to throw thousands and thousands of buses all around Malaysia and have them running almost-empty the whole day?

Thirdly, how would having more buses stop fuel smuggling as our neighboring countries continue to increase their fuel prices while we continue to heavily subsidize ours?

Fourthly, how would having more buses allow Malaysia to bring our tax system into the modern world, in-line with 90+% of the world by having GST? How would having more buses ensure that Malaysia can afford to reduce our corporate tax to be inline with our neighbors so that we can be equally attractive to investors - both local and foreign and also drastically reduce trade mispricing outflows that you all label as "illicit outflows"?

Fifthly, how would having more buses allow govt to selectively channel our subsidies to the population segments that needs it most instead of subsidizing the rich too. Don't you know that economist all over the world say that blanket subsidize distort our economy and makes us less competitive?

So, if having more buses and excellent public transportation means Malaysia no need to cut subsidies and implement GST, then how come Singapore which has lots of buses and MRT have no fuel subsides and has GST?

I could go and on and on because subsidy rationalization and GST are complicated issues and economists can explain to you at great length the many many reasons why Malaysia needs to do this.

Unfortunately, YB Liew, your simplistic views of "Buses may be the answer to Malaysia's economic woes" would probably mean the economists explanations will be wasted on you. 

Since you have no English name, I think I will call you Forrest Liew from now on. 

If the "smartest" DAP leader can think like this, please never let DAP take Federal Power and be in charge of Malaysia's economic policies.