Reducing Subsidy or Reducing Corruption?

On last week, Idris Jala revealed the fact that we are heavily subsidized and that if the country continues to be run that way, it will face bancruptcy by year 2019! (full details in http://thestar.com.my/news/story.asp?file=/2010/5/27/nation/20100527171008&sec=nation
Yes, we have to be awared that we are given the highest subsidies - 4.6 per cent of GDP even higher than Indonesia (2.7 per cent) & Philippines (0.2 per cent). What Idris failed to adress is the fact that the government operating expenditure has been soaring over the past years and that the deficiencies in the delivery system has caused billions of ringgit losses to the country.
Few recent examples are the PKFZ scandal and the huge overrun of Bakun Dam project. There were certainly misconduct by certain party which Rakyat ended up have to foot the bill.
On the other hand, what had government done in curbing corruption? Millions of Ringgit can be salvaged and channeled to even allowing greater subsidy for the poor if there is politically will to curb corruption. I felt ashamed to claim myself as Malaysian when looking at the deteriorating standing of us in the Corruption Index
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Credit Card

I have been thinking of cutting down the number of credit cards that i am holding ever since last year. I am holding 5 cards and only 2 of them are frequently used. Though i have been thinking of cancelling some non active cards, but i have procrastinated that for a while as there is no harm of keeping the additional cards "in case they will be needed one day".
with the budget 2010 announcement of having to pay RM50 each card as government charges, I really have to put my thought into action soonest I can.
Though I am enjoying discounts or rebates from some of the cards, but the amount of rebate will never be accumulated to RM50 per year. There is no point paying the extra to government without getting the real benefit of it.
I don't care about the rational behind the RM50 charges. I only care about the amount that i need to fork up in owning the cards. It is just not worth it.
I am glad that our leaders have found out a new way of increasing country's income. RM50 per card X 1 mil cards in circulation, it would be RM 50 mil sum of money.

Behind the hype of a cheaper RON 95 petrol

Effective Sept 01, vehicle owners will be offered a new blend of petrol RON 95 and the cheaper RON 92 will be phased out.
“By Sept 1, RON97 will be the alternative petrol and a premium product.
Instead, the RON95 petrol will be the choice petrol for consumers and be rest assured, the product is of high quality and is good enough to be filled into even luxury and high-powered cars,” said Domestic Trade and Consumer Affairs Minister Datuk Seri Ismail Sabri Yaakob.
Why he has to label RON 97 as "premium product". The reason is simple. This petrol is going to cost 20 sen more than what we are paying for the same product right now!
Why claiming RON 95 as "high quality enough"? Simply because it is obviously a lower quality petrol than what we are currently having (RON 97).
No doubt that we are paying 5 sen less for RON 95 (RM 1.75 per liter), but we are forced to settle with something with lower grade obviously. Why so, you can refer to http://en.wikipedia.org/wiki/Octane_rating for information about RON rating. The higher the number, the greater the power it is going to offer. For ease of reference, Shell v-Power is of RON 100.
In conclusion, we have been forced to suffer a quality loss with lower quality petrol effectively Sept'09, by paying 5 sen /liter lesser. And that there is a sharp 11% increase of our usual petrol RON 97 from RM 1.80 to RM 2.00.
Thanks again to the ever effective Malaysian government.

Recession on its way?

Malaysian stock market tumbled again today by more than 25 points before noon. This has been the 5th consecutive falls in the market this week.
I have started to worry about the share market now. I am in total dilemma now as to exit or to remain in market. With the index keep dropping, my paper loss has increased and I am not able to predict when it is going to stop.
With stop loss mechanism come into place, I should have cut the loss by selling some counters way long ago. But i failed to do so..
I haven't seen the bottom but it is now way too hurt to cut loss by selling off the shares.
Some people believe that it is worth accumulating stocks when market tumbled as there could be some bargains out there. But dilemma again - I do not have money to enter new markets without gettng rid of the bad stocks.

Wait and see...