History will prove PM right 

The Star – 14 March 2006

EVER since Datuk Seri Abdullah Ahmad Badawi became the Prime Minister, he has come up with a number of key messages and specific programmes that have endeared him to many Malaysians.  
His motto, “work with me, not for me” on taking office as Prime Minister conveyed a message of humility and common touch which struck a chord with millions of Malaysians returning him and the Barisan Nasional to its best ever electoral results in March 2004.   
His focus on accountability, transparency, openness and ethics also secured a lot of popular support for him.  
However, the Prime Minister’s decision to raise the price of petrol by 30 sen has met with public disdain and anger.  
Many were shocked. Some have felt that Pak Lah has lost his common touch.   
But, I argue otherwise. I believe this is the bravest and best decision Abdullah has taken as Prime Minister.  
It is easy to make popular decisions that go down well with the people. It takes political courage to make unpopular decisions that may create widespread disenchantment.  
Pak Lah’s decision to raise the petrol price marks him out as a political leader of great courage, conviction and wisdom.  
He has sometimes been described as a weak or indecisive leader. But, this single decision has thrown out all such accusations.  
No weak or indecisive leader will have the courage or political will to make such decisions and yet he has done so. It will go down in history as a correct decision to take.  
History will record this as one of Pak Lah’s finest moments. Sometimes, such momentous decisions go unrecognised because they are not popular decisions but then that is what political leadership is all about – making tough choices and difficult decisions.   
No one should now doubt the Prime Minister’s decisiveness. This is not a sign of a weak leader.  
Clearly, the subsidy is not sustainable due to the prevalent high oil prices. Most economists are also of the view that subsidies create distortions in the economy which impact on national competitiveness.   
In this case, petrol subsidies benefit the middle-class more than the poor. The middle-class is better able to cope with the oil price shocks than the poor and needy.  
In addition, the Prime Minister’s bold and decisive action to bite the bullet and have one significant price increase this year rather than staggered smaller increases spread over a few months is laudable as it removes the element of uncertainty and better aids in business planning or budgeting.   
The public can be assured of no further petrol price increases this year.  
Nevertheless, it is important for the Government to ensure that the beneficiaries of the cut in petrol subsidies are firstly the poor and needy and secondly improvements in public transportation.  
There should be a detailed and transparent cost-benefit analysis of how the savings will be utilised. The right target segments to whom direct assistance will be given should be identified.  
Accountability and transparency are necessary in this entire process.  
I would like to propose that as it has been announced that a large proportion of the savings from the reduction in the subsidy will be allotted to public transport, the Government commission a National Urban Transport Study to develop a comprehensive Urban Transport Master Plan.  
Awards of any projects for improvement in public transport should be by open tender or competitive bidding.   
At the same time, the Government should establish a National Public Transport Board with representatives from the business community, universities and civic organisations to ensure that public transport will be effectively upgraded, coordinated and well-maintained.   
DATUK DR MICHAEL YEOH, 
Chief Executive Officer, 
Asian Strategy & Leadership Institute, 
KUALA LUMPUR 
2006