Subsidy oh Subsidy

In the near future, the amount of subsidies given to us will be cut down. The subsidies have been all along considered as a big burden to our government given the current budget deficit. Even now, there are already a few road shows conducted by special agency which aim to explain how by cutting down subsidies, it will boost the economic growth.

In this post, I am not going to touch on how the mechanism works or how it would become a catalyst to the economy.

But, I am more interested to write on government’s approach in explaining this issue to our fellow Malaysians.

The idea behind this subsidies cut is very simple. Government believes if we continue to live with subsidies alone, our country will go bankrupt within nine years. I think it is a very simple message which contains a very strong reminder. Our country will become the next Greece if we continue to adopt the same policy.

Now, let’s get down to the real issue. Do you really think that it is a good approach to convince our people? Subsidy is a special case because it could be a privilege but sometimes it is also a fundamental right for the people. Subsidies in education or health care sector are vital because people have a right for better education and health care services. Thus, by taking away subsidies is just like taking away their fundamental rights.

That is why I believe that this issue should be handled wisely. If you ask me, this is not about giving numbers or providing economics details. This is the issue of managing perception. Feeding our people with a notion that this country will go bankrupt within nine years is somehow difficult to understand. This style is no longer effective. In fact, posing a threat like this would only cause anger among the people.

The approach has to be changed. We must make good reasoning in every decision made. Tell them that other sectors would bring more benefits provided that money from subsidy alone is channelled to the undeveloped industries. Convince them, if the policy is continued, it would lead to inefficiency which is unhealthy to the society.

A risk of getting heart attack is easy to understand because it involves your lives, but a risk of getting bankrupt is a hard one because again subsidy is a special case. It is difficult to leave the comfort life behind when you know there are other alternatives for that particular problem.

p/s: In life, kalau boleh simpan dua, kenapa nak buang yang lagi satu.