Prepaid registration move an overreaction
Stanley Koh Aug 18, 05 1:21pm
On a cabinet directive, telecommunication companies are now required to conduct a compulsory registration drive affecting some 14 million users of prepaid cards. This followed media reports that prepaid phone services posed a security threat because terrorists are using cell-phones to detonate bombs.

Other reasons given included the abuse of cellular technology for disseminating threatening text messages, rumours and for purposes of defamation.

The energy, water and telecommunications minister has publicly admitted that the registration drive would be a ‘big problem’. The larger question that looms ahead for many level-headed Malaysians is whether the government’s move is foolproof.

Can the government’s solution effectively contain or prevent various abuses probably carried out by a minority of the 14 million prepaid card users? Notwithstanding the recent report that even more sophisticated technology involving microchip for credit cards is still vulnerable.

Can mere registration of prepaid card users effectively prevent further abuses? Is this a hasty decision on the part of the government prompted by recent SMS messages spreading rumours on the health of the prime minister’s wife?

Due to a minority number of abusers, the majority are now inconvenienced. In this instance, our government’s move is typical. Milton Friedman, perhaps the best known and influential living economist once quipped that, ‘The government’s solution to a problem is usually as bad as the problem.’

For all it matters, this government lacks complete wisdom in decision-making not only in this case of compulsory registration of prepaid card users but also in other matters affecting consumers.

In an effort to reduce the government’s burden on subsidies, the poor are now burdened by price hikes on processed food and uncontrolled items. Some traders are charging more than displayed prices due to ineffective enforcement.

So will compulsory prepaid card registration effectively stop abuses via cell phones? It’s a 14 million ringgit question now. Topping up credit or air-time is convenient now with reloading cards available even at mamak stalls and even via SMS by one user for another. But that could be history in months to come.

The wisdom arising from this registration requirement is that governments never learn, only the people do. A lesson is also taught that the government can never protect the consumers but it is the consumers who should be protected from the government.

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