First of all, he didn't seem to acknowledge that car fuel, at times when global prices are rising, is not a necessity. True, people's lives will be affected as the cost of driving a car will go up due to a reduction in subsidy and it will also affect the prices of goods. But I believe people will react by economising not only the use of their cars but also their day to day purchases down to the level of necessity. It would certainly be a different matter, if the government were to reduce the level of subsidy on electricity (but again Bruneians DO NOT economise their electricity usage).
Now, if the government were to decide to go ahead with the slashing of the fuel subsidy, the relavant government agencies should come forward to alleviate the effects on the lives of Bruneians. Firstly, this is when Price Control should be THE active policy in regulating the prices of necessities. Price ceilings of goods which are deemed staple MUST be worked out NOW so that sellers do not take advantage of the increasing fuel price.
Secondly, the Ministry of Education and/or the Ministry of Communication for instance, should come forward in helping parents transporting their children to school. School buses have to be provided and preferably privatised. This will not only directly help the people but also can help boost the transportation industry.
According to the Minister of Energy, about B$500 million was spent on the fuel subsidy in 2005. Again, that's A LOT! The money could be spent on other productive activities including in providing the resources for the above-mentioned activities. But the one use that can directly help the weak private sector and perhaps nurture new entrepreneurial ideas is to use it as SEED MONEY. Instead of spending millions making Bruneians lazy, why not use a fraction of the money making lots of Brunei entrepreneurs. Now BEDB could play a big role here as the agency responsible in giving seed money to the potential entrepreneurs.
Anyway, what I'm trying to say is that in 'every challenge there lies an opportunity' as there must always be 'a blessing in disguise'. This should be the slogan to any good entrepreneur. And I also wonder why should Bruneians be insulated from the effects of the global forces as I think it is unhealthy to the development of a resilient economy and a nation as a whole. It is high time, Bruneians learn to think rationally and start prioritising their lives. Not only that, I also think that a shock is probably what this sleepy country needs to revitalise its weak economy.
Salaam.
"The basic difference between an ordinary man and a warrior is that a warrior takes everything as a challenge while an ordinary man takes everything either as a blessing or a curse." (Carlos Casteneda)
P.S. If you read the news, the US economy is heading more and more towards a recession. A gloomy sign to the global economy. Now, that's a BIG challenge!
7 comments:
Hi Hjh
Reading your blog is so refreshing! I wish more Brunei people think like you especially our bosses! I can't wait for you to come back with your PhD and teach/educate/advice these people in Brunei! Well done, keep up with your blog! Looking forward to your next article.
kulikang
what we seriously need in brunei are leaders that lead by examples. Its always easy to talk, but good advice is given upon putting yourself in the other person's shoes. Opinions expressed must be honest and not hyprocritical. I agree that the fuel subsidies we get are getting scarily higher and unrealistic. And I agree that serious research and preparations are to be set in place before implementing the policy reform. For instance, from my point of view, we don't have a proper public bus system. Does the average Bruneian knows which bus goes to the capital and how regular are these buses and where to get on the actual bus?? At the current situation, how many of you Bruneians would actually go to Gadong by bus? Just ask among the overseas educated people, who are no stranger to public transportation when studying abroad. How many of them would actually do it? And these would be the same people who lament about how Bruneians are so protected and don't know how to live in the real world.
My conclusion is that Brunei's greatest problem is still the mindset of its people. From ALL socio-economic level.
p.s. this is not meant to be a personal attack on anyone. i'm one of those overseas educated people myself who is trying to come to terms with the real world
yea...anonymous23...if you get on the "purple" bus to get to gadong, your bestfriend wll be the first to laugh at you...your gf/bf...will dump you...and on..and on...and on...it goes..
"Abrupt removal or reduction of fuel subsidies could deal a severe blow to the living costs of most Bruneians"
Yes I do agree with the aChairman's statement. However as Rogueeconomist pointed out, its all about Bruneians's mindset on how to properly utilize these resources.
If the tariffs on these resources (fuel, electricity, water etc) are increased, as an interim solution why not the government, via the Ministry of Culture, Youth and Sports, set up some sort of concession system for eligible families (i.e. families bringing in minimum wage each month). Something like the Centrelink down-under. Financially abled citizens would pay close to the market price, while those on concession still get subsidized prices.
Like what the dCEO of HSBC mentioned, "There will be "luxury change" among Bruneians who are known for lavish spending"
InsyaAllah, as time goes by, us Bruneians will then be able to appreciate what the Government has been providing us all these while and actually start saving up *to pay cash for their toys instead of installments*
What say you gFerro with regards to your ministry? hehe
Personally, i wouldn't mind if the middle class/ rich start being taxed or charged in some way or another. Start small, like tariffs or higher road tax costs for expensive or high cc cars, like a "luxury tax". I'm sure we can think of more areas within this bracket. Pump the money back into useful related causes.
P.s. im middle class as well.
Wow. Example of the conventional mindset that many Bruneians tend to have:
"Anonymous said...
yea...anonymous23...if you get on the "purple" bus to get to gadong, your bestfriend wll be the first to laugh at you...your gf/bf...will dump you...and on..and on...and on...it goes.."
This kind of thinking shouldn't be on people's minds. However, I have to admit that, regarding these 'purple' buses, I tend to think of the buses as being unclean and - no offense -filled with foreign workers... :S
Although, from what I've read, contrary to popular misconceptions, these purple buses are actually cleaner than most would expect, though they might not give such impression from the outside. In addition, busdrivers here tend to not be reluctant in letting off passengers at non-dropoff points.
Besides buses, if the gov't were ever to provide a MRT system for Brunei (maybe for the Gadong-Kiulap-Bandar area), then I'd be more than glad to hop on one and use it as my main transportation medium while travelling around Gadong, Kiulap and Bandar. And I'm sure, through this implementation of a MRT system, it could significantly reduce the rate and scale of traffic congestion that tend to occur around the said area.
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