Tuesday, June 10, 2008

The Government Cost Cutting Measures

- Entertainment allowance forcabinet ministers and deputyministers cut by 10%. The currentperks are RM18,865 for the primeminister, RM15,015 for the deputyprime minister, RM12,320 forministers and RM6,000 for deputyministers;

- Paid annual vacations for ministersand deputy ministers limited toonly Asean countries and domesticdestinations, and only for a week;

- Seminars and workshops mustbe held in government premises;hotels can be used only forinternational-level events;

- Functions should be moderate andnot extravagant;

- No special uniforms and apparelfor events;

- No expensive gifts, if reallynecessary only restricted to books,local handicrafts or local foodproducts;

- No renovation of offices or movingto new offices;

- Deferment of purchases of assetslike cars, furniture, computers andoffi ce equipment;

Finally the PM has wake up from his sweet dream. Come up with a cost cutting measurement is better then nothing. Although there is a big difference compare to what the opposition government already implemented, I like to see it from the positive perspective.

There is one measurement that come into my intention, excluding the 10% cutting for the entertainment; the paid annual vacations for minister and deputy limited to domestic and only for a week seems to be unnecessary. I don’t have any idea if the minister and their deputy still in the mood for vacation while most of the "rakyat" suffering.

Most of the "rakyat" have to struggle to survive with high living cost, all income will be spend for petrol, glossaries, bills and vacation is totally out from budget. How could the "rakyat" money spend easily by minister and their deputy for entertainment and vacation?

Abdullah also said government could get RM 2 billion a year once the cost cutting measure implemented, that amount will be utilize to help “rakyat” overcome the raise of fuel price.

As we go further, the 10% of cost cutting worth RM 2 billion that’s mean 50% should generate RM 10 billion, that huge amount of money might cover some of the fuel subsidy given by government so that the fuel increase will not reach 41%; in fact the cost cutting just for the allowances not the salary. It’s clear that government do have other options beside increased the fuel price up to 41%.

If we do simple calculation, we will found that government waste RM 20 billion of “Duit Rakyat” just for allowances yearly, it is much higher then some allocations in RMK-9.

It is important for government to come with performance measurement as well; those minister and deputy which not showing good performance should be rewarded not with "penyapu" but by cutting another 10% to 20% of their salary and other benefits should be taken away.

Be a role model, show the "rakyat" that government could contributes in many ways to ease the burden. Even though all the measurement seems to be no affect to minister and deputy life style and spending power, at least they has took the 1st step. For Malaysian out there, let us pray that today government will not turned Malaysia into a “broke country...”

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