The 'painless budget' continues to be a pain for the market and economy. We thought the budget would impose a small excess profit tax on Petronas if the price of crude oil exceeds US$50, just like how the North Sea countries help to finance their budget deficits.

Alas, no. Even if Petronas' net profit soared to RM36 billion in 2004 and maybe RM50 billion in 2005, the government will not pump prime the economy nor kick start the stock market.

Meanwhile UmnoYouth is screamimg that the bumiputra equity participation has dropped to 20 percent. Shouldn't they be do something proactive like asking the rich bumiputeras to invest in the stock market now rather than remitting billions of ringgit overseas to Australia, England, etc to purchase homes, horse farms, orchards and other foreign assets and shares?

Our small and mid-cap stocks are so beaten down that they present such good value for the rich bumis to increase their stake to more than the targeted 30 percent. By doing so, the rich bumis would bring confidence back the local market and prevent the foreign fund managers from saying 'Why should I buy if you locals are not buying?'

And secondly, the rich bumis, in order to protect their investments, could rightly insist on better corporate governance.

Going back on the oil price issue, it is a known fact that the average Malaysian spends 70 percent of his income on housing and car expenses leaving 30 percent for his basic needs. On the other hand, the average Westerner spends only 30 percent of his income on housing and car expenses.

Hence a five percent increase in the price of gasoline would severely affect the average Malaysian but not the average Westerner as he still has 65 percent to spend.

Need I say more?