KOTA KINABALU: The three-tier fuel subsidy rationalization scheme to be implemented next year will not work because of the colossal procedures involved.
Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) president Datuk Michael Lui said the government officers who were not in the business industry might not understand the huge amount of procedures involved if the scheme was implemented.
He said it would be embarrassing if the government revoked the scheme when the implementation turned out to be in chaos.
Lui said when asked to comment on Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah’s announcement on the fuel subsidy rationalization scheme that would be based on monthly income.
Ahmad Husni said those earning below RM5,000 per month would enjoy full subsidy; those earning between RM5,000 and RM10,000 would enjoy partial subsidy while those earning above RM10,000 would not receive the subsidy.
Lui said the three-tier fuel subsidy rationalization scheme was unfair to high income earners.
“Maybe they are deserving of high income due to their position, but (the scheme) seems to punish those earning high income.”
He said the government should do away with full, partial or no subsidy for fuel.
Lui said the scheme did not take into account the expenses of high income earners as well, for instance, a person earning more than RM10,000 a month might need to take care of his or her elderly parents and settle other expenses.
In addition, he said petrol kiosk operators might not be able to get their heads around the scheme.
Lui also foresees that there might be a long queue at petrol kiosks once the fuel subsidy rationalization scheme came into effect when consumers have to produce their MyKads or scan thumb print during refuel.
MyKad usage in the scheme might also give unscrupulous individuals opportunities to obtain personal information, income details and types of vehicle a person own, he pointed out.
Lui hoped that the government could reconsider the scheme and that the fuel subsidy should be the same for all people.
He suggested that the government study other oil producing countries like Arab Saudi, Brunei or Kuwait and the benefits their people enjoyed.
“Or (the government) can compare the fuel price in oil producing countries in the world and take the average price as reference,” Lui said.