Fuel prices: New reps, old arguments

malaysiainsider | ...The highly-anticipated debate at the 2nd Malaysian Student Leaders Summit here today saw all three focusing on fuel subsidies, agreeing that a restructuring was necessary and a removal in the long run to eliminate a "tongkat" (walking stick) culture, but similarities ended there.

Initially being outflanked by Pua's contention that the price increase was not accompanied by complementary policies and Nik Nazmi's point that countries like Norway kept oil money in a trust fund for a rainy day, Khairy quickly pointed out that both were impossible given the circumstances.

"Our roads, schools and reach of electricity and telephony are not the same as Norway's. We have to use Petronas revenue for serious developments. Why is it Malaysia doesn't have a trust fund?

"We spend to build schools, roads, combat urban poverty. We're a developing country, not a developed country like Norway and we need to do short-term development," Khairy argued.

Pua questioned the lack of public transport infrastructure that would ease the cost of commute, saying that "until there is viable public transport system, raising fuel prices is unjustifiable".

But Khairy said that funds allocated from the savings in raising pump prices had dissipated due to the continued increase in global oil prices and that creating a self-sustaining and competitive public transport infrastructure needed proper regulation.

"The government is looking into setting up a regulatory body instead of having public transport overseen by different ministries and city councils like DBKL. Then it can divvy up profitable and non-profitable routes among operators if not certain routes won't be serviced."...selanjutnya.