In response to the Budget 2010 announced by the Minister of Finance, the Federation of Malaysian Consumer Association (Fomca) makes the following suggestions and proposals:
Food security
1. The budget lacks emphasis on long term food security measures. This exposes Malaysia to food crisis, as occurred with rice last year.
2. The development and expansion of the ‘pasar tani’ has not been emphasised. The ‘pasar tani’ benefits both farmers and consumers. Fama must play a major in this.
3. Subsidies should focus on the poor and marginalized. An effective social safety net should be in place to ensure a minimum standard of living.
4. Assistance and benefits for hard core poor were not addressed well. Among them, these benefits could include, hospitalization benefits, unemployment benefits, monthly pensions, transport allowances and special housing loans.
Consumer education
1. Consumer education will allow the people to be aware that they cannot be dependent on subsidies but that they have to take greater personal responsibility. But consumer education was not emphasised in the budget.
Credit cards
1. Minimum wage level to qualify for a credit card should be strictly enforced at RM 1500.
2. Financial education should be emphasised especially for children and youths whether formal or informal.
3. Charging the consumer for credit cards is not fair as the regulator should also restrict their aggressive marketing campiagns of credit cards especially to youths.
Public transport
1. There is too much emphasis on infrastructure for private cars and mass-transit systems only. Integration of public transport, including busses, bicycles, taxis and pedestrians should be given priority.
2. Public transport development is focused in Kuala Lumpur but it is a national issue. The public transport system should be given priority at the national level.
Approved Permits
1. Instead of a fee for an AP, we should look at whether the AP system is beneficial for the consumers and country and not just for the AP holders alone.
2. We should be building a more competitive and fair market for the benefit for both consumers and producers. Thus the AP system should be removed and the market should be more competitive.
GST
1. In the implementation of the GST, the consumer must be educated of its benefits and a policy system must be in place. A consultative process with the consumers must be undertaken.
Crime
1. More police patrols and confidence-building should be done so that consumers feel secure in their homes and communities.
2. Consumers themselves should also take responsibility for preventing crime.
Privatisation
1. Consumer interest must be above that of the shareholders.
Corporate Social Responsibility Fund
This fund should be used for real CSR activities based on well established criteria. Based on Bursa KL’s study on perception of CSR among public-listed companies, most of them believe that CSR activities only encompass philanthropy (charities and scholarships).
Agriculture
1. The oil palm industry has been under scrutiny from both within and outside the country due to claims of loss of bio-diversity and unsustainable agriculture practices. The budget’s allocation for agriculture does not place clear emphasis on the adoption of sustainable agriculture practices, land use for agriculture, and sustainable forest management.
In terms of fisheries, there is no emphasis on the allocation for a sustainable fisheries industry, conservation of marine fish stock and bio-diversity.
2. There was mention of living allowances and incentives for fishermen but the budget has left out another important community - the farmers especially small-scale farmers. Such incentives for farmers will ensure the sustainability of the agriculture sectors and improve the quality of their lives.
3. There has been significant amount of subsidies for paddy fertilisers (RM300 million). We hope the implementation of such subsidies will not encourage the excessive use of fertilisers to the detriment of the environment.
Furthermore, aqua-culture practices must ensure freshwater and lake ecosystems and bio-diversity are not harmed.
4. The aqua-culture industry allocation of RM82 million should emphasis more on food production and less on ornamental products.
Certification and standards
The has been quite a lot of mention on certification especially in the area of green technology (green building index, environment-friendly product and services) for the purpose of giving out incentives to promote the use of such technology. We hope that the Department of Standards will not be excluded from the allocation which concerns the standards and standardisation of green technology-related activities.
There are hundreds of standards (international and national) which serve as important tools to support green technology activities.
People with disabilities
There have been constant calls by people with disabilities to improve building designs and public transportation infrastructure to be barrier-free in order to enhance the mobility pf People With Disabilities (PWDs).
Such provisions will enhance the degree of independence of PWDs and allow them to go to work and be part of mainstream society.
Product safety
We hope that there will be continued emphasis in terms of budget allocations to promote safety and hygiene practices among young consumers particularly in schools. This is important to manage disease outbreaks like the ongoing A H1N1.
Our survey at schools showed 75% of the canteens and toilets did not provide basic hand washing facilities. How do we prevent food safety incidents in schools with such a lack of facilities?
Green jobs
Tax incentives for green jobs must be nationwide and not at the Iskandar Development Region alone
Preventing corruption
• The Whistle-blowers Act is a commendable statute to be enacted as it gives immunity to the ‘whistle-blower’ from any civil or criminal action being taken against him.
However, our concerns are as follows:
- No mention on protection given to the ‘whistle-blower’, only immunity. There is a need to enact another act on protecting them to ensure their safety after the case is closed.
- Lack of information on the content of the act except for the immunity from civil and criminal proceedings.
- Even though we are pleased to the establishment of 14 new special sessions courts and four new high courts, such a move will require more allocationa and man power. The need for induction courses or training for the judiciary personnel will also required. This ought to be a long-term implementation plan.
- The key towards improving the malaysian Anti-Corruption Commission (MACC) is transparency in exercising their responsibility.
Energy
1. The improvement of electricity quality is a good emphasis. However, the importance of energy efficiency was not addressed. The increasing energy demand also increases energy wastage due to non-efficiency.
Currently in Malaysia, the energy supply’s average efficiency is about 35 % . An increase in this value assists in catering for energy demands.
In addition to that, the energy footprint per unit product and per unit service rendered should be implemented to ensure industries improve energy efficiency to reduce a high increase in energy demand.
This is a core part of the commitment under the Green Technology Policy adhered to by the government.
2. Rural electrification plans were not addressed. In implementing equal service for the public, rural electrification becomes vital to assist in the balanced development of Malaysia.
Water
1. RM2.6 billion was allocated to cater for proposed projects. However, we hope that the projects are based on open tenders. In addition to that, the quality of water and the reduction of non-revenue water (NRW) should be focused upon. NRW for 2008 was at a staggering RM1.5 billion worth of loss.
2. The sewerage industry needs a total revamp. The centralisation of sewerage treatment systems can assist in the efficiency of treatment. Methane extraction from sewerage and combining organic solid waste to be treated into a similar system increases methane extraction.
This in return increases fuel that can be used to generate electricity. The combustion of sludge can be converted into fertiliser and as admixture for concrete mixtures. These in total add value to the industry.
Green technology
1. The restructuring of the Pusat Tenaga Malaysia to be Pusat Teknologi Hijau Negara is a good move. We hope that the centre moves in right direction by understanding the actual grassroots needs in green technology.
2. The government’s intitiative for Putrajaya and Cyberjaya to lead the green technology move is lauded. This is to ensure the policy makers themselves demonstrate a greener lifestyle. Their achievements should be published for the public’s viewing.
3. Green procurement was a recommendation that Fomca was advocating for many years. We hope the government gives transparent reports on their spending.
4. There should be strict monitoring of the loan facilities for green technology implementation for producers and consumer goods. This is to prevent consumers being cheated by wrongful claims.
5. A Green Building Index is a good way of ensuring that buildings are environmentally friendly. This encourages the inhabitants to practice a greener lifestyle as well. The continuous monitoring and the ‘greening’ of older building are more challenging. This must be continued.
Development of regional development corridors
- Huge land clearance and development will increase the impacts on the ecosystem. Therefore proper Detailed Environment Impact Assessments (DEIA) reports need to be done.
Mass development such as these can be seen in areas like Lojing, Kelantan and such destruction cannot be reversed. The effects will be seen in other mono-crop and multi-crop plantations.
The writer represents the Fomca supreme council.
