Malaysians are bracing themselves for the onslaught of the GST regimen to add to the misery of Barang Naik. Elsewhere though, Proton has reportedly submitted a request for a RM1.7bn subsidy to the Economic Council chaired by Najib.
According to The Edge (21-27 July), the amount is for ‘research and development’. Actually, it sounds more like yet another government subsidy to the corporate sector (the fancy term used in this case is ‘R & D grant’).
The GST is expected to squeeze out an additional RM5-6bn in consumption tax annually from the debt-burdened people of Malaysia. But in one fell swoop, Proton, which is now privately owned, expects the government to cough up a staggering sum from public coffers.
We have been told that the government can no longer afford to provide subsidies for a host of essential goods and services. But now we see Proton eyeing public funds to subsidise its loss-making cars. In the financial year ending 31 March 2012, Proton incurred a loss of RM606m, and this ballooned to a jaw-dropping RM821m the following year.
Note that Proton is now a private company after Syed Mokhtar Albukhary’s DRB-Hicom Bhd acquired a 42 per cent stake in the firm from the federal government’s Khazanah in 2012.
Why should the government/public subsidise a privately owned car company when we are being constantly told that the government cannot afford subsidies for essential items and services?
Mahathir, the recently appointed Proton chairman, had reportedly said last week that the government needs to reimburse Proton for money spent on research and development. Is this why Mahathir was appointed chairman of Proton – to make it easier for Proton to dip into public coffers?
Proton has already cost the nation dearly – in terms of higher car and toll prices (which has added to the debt burden of Malaysians households), the overall neglect of public transport all these years, and the never-ending drain on public funds to finance this ill-conceived Mahathir ‘baby’.
Say no to more handouts of public funds for private firms. Enough is enough. If at all government subsidies are needed, they should be for public transport, not for a private car manufacturer that will only add to the congestion on our roads and to emissions.
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What car will you use without the cheap car from Proton? You think you can buy Mercedes Benz like Lim Guan Eng?
Eastern Dispersal Link (EDL) is a privatised highway project in JB. Yet the government today raised the toll rate at the JB-Singapore causewat wef today to cover the cost of EDL. Another example that BN privatisation bringing financial pain to rakyat. No wonder the Bas Kilang to Singapore today went on strike.
Kadar baru tol membabitkan kenderaan Kelas 1 hingga Kelas 5 dari kedua-dua arah keluar dan masuk CIQ Johor Bahru, berkuat kuasa 1 Ogos 2014. Dari RM2.90 dinaikan ke RM16.50! Forum “Membantah kenaikan kadar tol di CIQ, JB” Tarith: 2 Ogos 2014 (Forum dalam BM/CN) Tempat: 11th Century Hotel, JB 1. Kenaikan tersebut terlalu terkejut dan rakyat tidak boleh terima kenaikan ini. Ini juga melibatkan emosi rakyat yang akan memberi impak negatif kepada kerajaan. Rata-rata rakyat merasakan kenaikan kadar tol ini amat membebankan. 2. Kadar kenaikan terlalu tinggi. Kadar tol baru arah masuk Malaysia, kenderaan yang dibahagikan antara lima kelas iaitu… Read more »
Anil,
You must watch this and include this in your blog……….This is soooo……..funny…….and…….soooo……..true
Thanks, looes74, it’s cute, but unfortunately the embedding for this video has been disabled on Youtube; so it is unable to appear on my blog.
Ananars
Posting here is about imposing gst
Rationalise subsidides (read my lips:for the poor)
And great umnoputra is asking government to subsidise a huge 1.6b
Read my lips again its Billion
Does it make sense?
Yes, He is asking for 1.6 billions but has the BN govt agreed yet. Many are asking so much and so much, Did all get to get what they ask. With GST the govt may have an extra 5-6 billions but most will be used as govt expenditures or development. Yes it look big but it depend on the people spending and since it is spread out, each and everyone may incurred an extra or even less due to GST. And many essential goods will not be subjected to GST. What is worse is when the State govt of Penang… Read more »
Ananars
Dun try to compare?
Aint you comparing when u said other countries have gst?
Dun shoot yourself while you try to run down others
Tesla Motors – The Future of Electric Cars [Full Documentary]
http://www.youtube.com/watch?v=i7J-tlrkVEE
Renault Twizy The uncensored story of a disruptive innovation
Only in Bolehland money from rakyat is used to support a private company owned by crony.
When that company makes money, the profit is not shared to rakyat.
Rakyat are screwed to buy that overpriced local car (overpriced due to low quality and technology) because imported ones are made expensive with higher levy.
And in Penang, the Rakyat are screwed to buy overprice land and houses
Why envy people who could afford?
Shin Loong. Do you understand the meaning of overprice. Price that is to be sold at 72k but was sold for 200k and not from the list in the housing department but sold directly by the developer which is not allowed under the ruling. This is cheating by the state govt
Considering the facts that GST have been implemented through out most of the world, any fault finding by the opposition that it is being used for subsidizing of cronies is not a good reason. World globalization is moving forward and we cannot be left behind. GST is the replacement of the Sales & Service Tax which is now more broad based. While the State govt of Penang continue to burden the rakyat with various taxes like the hotel tax, increase in the rental of TOL land, hawkers centres, water tariff and properties taxes etc etc the GST is aimed to… Read more »
Rakyat should be educated with the term “disruptive innovation”: A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market. The recent case of disruptive innovation are: Smartphone/Tablet… Read more »
many thanks Don, learn something from your sharing.
no wonder people are willing to fork out ~RM30K (amount irrelevant to monthly commitment if spread out over years of instalment paymen) buying a Toyota (Vious) or Honda (City or Jazz) rather than a Proton Saga !
If you take car loan, the monthly cost for a Vios is not significantly higher than that for a Proton Saga. So the choice is obvious if you want a car with a better resale value.
Proton’s advisor Tun M should watch this trend:
Smog, subsidies set to energize China’s electric car market
http://www.youtube.com/watch?v=V2jzsLH1hp4
Automakers Hope to Tap Chinese Electric Car Market
We need more insightful feedback and comments like this to enrich the knowledge of readers, instead of those meaningless cat bashing comments. I hope Don AnamalAi can provide more such comments.
Well said. Enough is enough. what more does Mahathir want?
First, he tried to topple Dr Mahathir Mohamed, and failed. Then he tried to topple Abdullah Ahmad Badawi, and failed. Finally, he tried to topple Najib Abdul Razak, and failed as well.
Even as Malaysia faces crisis after crisis, Anwar Ibrahim has now decided to set his sights even lower, and focus all his energies on toppling Khalid Ibrahim. Good chance he will fail there too.
Anwar’s credibility is crumbling almost as fast as his integrity is disintegrating…so will be LKS & son the bluffing CAT
Yes he will failed. Checkmate by PAS. With GST we will become stupid as alleged by some here. With hudud and an Islamic state, will this make him smarter. Look at how the bible in Selangor have been manipulated. Look at how the CAT despite its majority passed enactment 35 that prohibit the use of Allah and 35 words by non muslim. Like I said I rather be stupid paying some taxes then having hudud and an islamic states. You can still make money and a good living even if you pay some extra tax. Those who pay no taxes… Read more »
Don`t to blame GST on barang naik. GST is just the replacement for Sales & Service Tax (SST) in another name.
Yes, please continue to be bodoh and diperbodohkan as this is what you do best !!!
Yes I rather be a bodoh paying some taxes but not like a fool believing in the lies and deceit of the tunnel, land reclamation and Kajang episode.
GST was started as early as the 1950s in France. In the ASEAN region only Malaysia, Brunei and Myanmar is not implementing GST. More than 163 countries in the world has implemented GST.
Ha so you are one smart as or the billions of people in these 163 countries are bodoh
But do you see your neighboring countries have imbalances in government expenditures especially over-bloated staffing and un-ending subsidies on unsustainable ventures under the pretence of race based building transformation programmes that lasted for decades. Even the post arpartheid correction in south africa has its mid course steering committee to justify for its need because its simply not sustainable!!
Yes I see several such as Thailand, Philippine, Indonesia, Myanmar, Cambodia. etc. Have I miss out any or you want to refer to that one. Don`t try to compare please
CORRECTION: Proton is ALREADY SUBSIDIZED – every car they buy is subsidized directly by each Malaysian buyer. Proton sells about 140K-150K units each year. On average they are probably subsidized anywhere from RM5K-10K EACH..That means each year, we subsidized it by at least RM700m to a few billon EACH YEAR..They are applying for additional RM1.7b on top of the billion each year we give them already..
Not every politician in BN is wicked just as not every politician in Pakatan is virtuous. The latest rumblings in Selangor over the water deal is worrying. Let’s not be too quick to praise one politician and curse the next. Everybody seems to have an opinion over the escapades of our politicians. But how many of us actually know the actual truth of Anwar & the CAT? How many of us are privy to the covert meetings, behind-the-scenes manipulations or under-the-table dealings to buy someone’s silence or make a quick buck? It’s time we acknowledge we are often merely pawns… Read more »
Yes Anwar … Remember Sabah. Too bad he failed September 16 because he has none. Now he trying to squeeze the 3 billion in Selangor Rakyat fund
GST is a small thing. Drowning us in a pool of lies we have been taken for a ride by the CAT in Penang on land reclamation, tunnel and botak hill. Worse still Pakatan in Selangor have even taken their supporters for an even bigger ride. 225 billions. Read this and we know why t hey want to have the Kajang epidsode. PR is now even worse than BN UMNO and their coalition.
http://www.freemalaysiatoday.com/category/nation/2014/07/25/drowning-in-a-pool-of-lies/
now the reader should be aware of the absence of Gerakan .
APPARENTLY the job has been outsourced to mereka yang ada agenda sama CAT.
How else do you think Malaysia is in the shambles that it is in ? It only reflects another egregious Mahathir’s project that is about to fall apart even though it should have fallen apart long ago. Or shall I say this Proton project should not have taken off at all but as usual, it was kept alive by the creator at the expense of the people. If one cares to tally up how much all the buyers ( 99.9% of them are Malaysians ) have paid since this Mitsubishi reject started. The amount could have easily built several more… Read more »