Now,you might have heard the news before yesterday or in today's newspaper but I am going to tell you about it anyway for the sake of you who have no idea what I am talking about.The Malaysian government announced yesterday that will ban people in foreign-registered vehicles from buying gasoline in border areas of Malaysia,where heavy subsidies have kept petroleum costs low despite soaring prices internationally.
In simpler terms,it means that if your parents are travelling to Malaysia,Johor Bahru in particular,they wont be able to fill up their petrol at the petrol stations anymore.The reason is because,the Malaysian government is trying to prevent foreigners from driving into Malaysia from Thailand and Singapore to fill up on cheap gasoline and diesel,which cost up to twice as much in the neighboring countries.They also added that the fuel subsidies, which were expected to cost the government 45 billion ringgit this year, "should actually be enjoyed by the lower-income group in the country" and not foreigners.
But worry not.This move is only temporary until they come up with better management of their subsidy system.It is reported that the ban could take effect as early as Friday at up to 300 stations within 30 miles of the borders with Thailand and Singapore which of course include Johor and other states such as Kedah and Perak.I dont have the statistics but I know that Singaporeans often make day trips across the causewayto fill their petrol tanks and buy groceries,which are cheaper there.To be honest,my family always does that and Im sure most of you have been doing the same thing too.
As you all know,the oil prices nowadays are very expensive but the Malaysian government has not raised retail gasoline,diesel or gas prices.Hence,you can understand the reason why it has decided to take this action to reduce the government's subsidies.The other course of action that they could have taken was to raise the gas prices but after the huge upset for the ruling Barisan Nasional (BN) in the recent elections,I doubt that would be the best thing to do if they want to gain back the support.For the Singaporeans,of course there will be many people who will be very unhappy with this move because it means now that they will have to pay more to fill up their gas and they will think the move was unfair.But thinking again,I think we have no right to be angry or upset with the Malaysian government because it is their oil and they have the right to do anything they want with it.
On the other hand however,we can argue that we are paying for it so there is nothing wrong,its a win-win situation for both parties.It would be interesting to see what effect would it have on the Malaysian economy and its tourism sector,particularly from us Singaporeans.We always spend a lot of money when we go to JB and before we leave,we will fill our gas but with the ban in place now,I think that situation is going to change and most people would stop going to JB in the near future.I mean why waste your petrol going to such a place that is very far and at the end of the day,you have to pay more money to fill your gas tank,its not worth it I think.The oil prices wont go down anytime soon so I dont expect this ban to be lifted anytime soon either.And if you think you can do it unnotice,think again because enforcement officers will monitor gasoline stations and those found breaking the rule could be fined or face up to three years in jail.
Anyway,like I have said earlier,this move is only for temporary period of time.It could be a few months or maybe a few years I dont know.But if you still wish to fill in your gas tank in JB,then tomorrow would be the last day I think.I hope the ban wont be for too long so I can go to JB by car more often.
5 comments:
Sori, just visiting and I like to echo your sentiments.
I think there are better ways to manage this e.g. two-tier rates. Lower rates for M'sians and another rate for foreigners. S'poreans have no right to be angry about it, true, but to ban? A bit too extreme I think. I read reports that 90% of the business in JB petrol stations are foreigners! Imagine the impact to these business owners (and their employees)!
How about tourism? I have organized many a trips to JB for my visiting colleagues by hiring a private van to bring them around in JB area to shop and eat for a day. My company even have an office there. My colleague would drive in, meet vendors, meet clients and then come back the next day. He will top up the petrol just in case if he got caught in a jam. What a hassle it will be now for him.
My point is, that the M'sian govt is acting in haste without even consulting on how the ban will impact the economy, the people, the businesses. I think there is a better way.
Hey anonymous,thanks for your comment,and it was a good one as well especially the two-tier rates idea.
The two-tier rates is a good idea because it will be reflect a much fairer outcome for both parties especially the Malaysian because you have to take into consideration that the government is providing heavy subsidies for everyone,including Singaporeans.So if we pay more,then they will gain back the subsidies provided for the Malaysians but use most by Singaporeans.
Another thing they could have done is to reduce the amount of gas that foreign registered vehicles are allowed to buy.You are right that foreigners,us the Singaporeans in particular, contributes most of the business in JB petrol stations.So definitely,their business will be hugely affected.Unfortunately for them,this is the government decision and not the state decision.
You have a good point there about the tourism because I know many Singaporeans drive to JB everyday to go to work,so it will be more difficult for them to travel now as they will have to make sure that their gas is full before entering JB.I dont know what will happen if the car suddenly stop in JB.
I also think you are right to say that the M'sian govt is acting in haste.I doubt that the overall economy in general will be hugely affected because we have to remember that only petrol stations in certain states are affected and I think this ban was just a desperate move to gain back the support,rather than trying to solve the rising oil crisis.And the timing of it was questionable too after the recent case of Pedra Branca.Im not suggesting there is any link to it but I am just trying to point out some reason on the decision to ban.
In the meantime,lets all look at the positive outcome of it.I think from now onwards,there will be more Singaporeans filling up their gas tank at the petrol stations here and with the oil prices getting so expensive now,its the oil companines here that will gain more by this move and hopefully.
I read that Malaysia government has been heavily subsidizing its people which is nearly out of control. The huge subsidy is getting wider and wider. As you can see the reason why oil prices in Malaysia are much cheaper than in Thailand and Singapore. This is the benefit of it.
However, this benefit have spread to other regions. People from Singapore and Thailand came to Malaysia to re-fill their gas. They seized this opportunity because of the oil prices that shot up recently. Currently, Thailand's petrol price is about 2 times of Malaysia's petrol price. The Malaysia government might have thought that there are way too many 'outsiders' who came in to take this advantage. So this mean the government had to subsidy their own country and even cars from neighbouring countries too. As you can see, this is not a great deal.
So petrol ban might be just a temporary action to avoid things to get worse and uncontrollable for the government. This may be for the good of its people. Every country has its own way of dealing things. :)
The problem is not on SIngapore - Malaysia border but rather on Thai - Malaysia border. We already have 3/4 tank rule and therefore we can pump mere 20 - 25 litres per trip. Also, we normally spend more money in JB town to eat, shop, car wash, entertainment etc. So probably whatever we save on petrol goes on other expenses in JB. We are actually helping the people in JB directly. Will the money which the govt save from the ban reach the people Or certain individuals?? No one knows.
This move will affect the JB people directly and might benefit some individuals (make them even richer). Btw Malaysian govt. has ifted the ban till June 16. Pressure from certain individual who owns the big caltex??
Malaysia Boleh?? HAHAHA...
Passerby,yes you are right.The Malaysian government is heavily subsidising the cost of the fuel and this was only intended for its people only.But of course,many Singaporeans and Thais have come in to get their gas fill because as you said it is much cheaper,not only due to the subsidy,but also the difference in the currency.I dont know about Thailand but us Singaporeans,we can get 2 things for the price of 1 in Malaysia.
As you know,the current oil prices is very expensive so the government needs to consider its plan to cut the rising cost.I dont know whether the ban is the best way to do it,but we shall see.Yes its temporary but I think for the gas stations near the border will be hugely affected nevertheless.
And Anonymous,I dont know how true is that because I dont know how often does the Thai people come to Malaysia and what exactly is the purpose of the visit but I have to agree with you that for most Singaporeans,we come to JB not only to fill our gas tank but also to do other things,hence the situation is not as bad as the Malaysian government put it out to be.
I didnt know that the ban will be lifted till 16 June,but thats about 3-4 weeks away.I didnt expect it to be lifted to quickly! Maybe you are right,certain private organisation are pressurising the govt to reverse its decision which can only benefit for both Malaysian and Singaporeans.
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