An economist has described the comments yesterday by Deputy Prime Minister Najib Abdul Razak in his defence of the government's action to sharply hike fuel prices as "pathetic".

"What did he tell us that we did not already know already from our painful experience of the increases since 2004? His suggestion that we tighten our belt and scale back on our expenditure is pathetic," said the economist who has requested anonymity.

Najib, who is the head of the Cabinet Committee on Fuel Prices, went on television last night to argue the need for the government to slash subsidies for petrol, diesel and liquid petroleum gas (LPG), which will save the government RM4.4 billion.

On Tuesday, the government hiked fuel prices from between 18.5 percent and 23 percent in the latest round of increases. In less than two years, the cost of petrol has gone up by 40 percent while diesel now cost 102 percent more.

Najib, in an interview which was carried by all major TV stations - RTM1, TV3 and ntv7 - argued that if our current consumption rate of fuel remain unchecked, Malaysia will become a net importer of oil in four years.

"This means if we don't do anything, future generations will have to bear the burden," he said.

The economist, who is from a local university, lamented that the latest bout of hefty increases is going to hurt, in particular, Malaysians from the low-income group.

"This is going to make it tougher for them, especially with the accompanying impact on their health, their children's education, their housing, their work," he said.

"It will likely also increase indebtedness among them and cause further social problems, making them even more marginalised in our society."

Change what lifestyle?

The economist took a swipe at Najib's suggestion that Malaysians should change their lifestyle in the wake of the sharp spike in oil prices globally.

"For some poor people, there is little or nothing left to scale back on, and their lives are already at the margins," said the economist. "We cannot expect the DPM (deputy prime minister) to know anything since he does not, and never lived, in poverty."

He added that Najib did not seem to understand the implications of such price increases on Malaysians as he does not travel using the country's inadequate public transportation system.

Najib had also argued that it would be better to raise fuel prices in one shot by 30 sen instead of having it being carried out in stages.

"Last year, we raised the retail price of petrol, diesel an d LPG three times. Which is better? Raising it three times or only once?"

While the university economist conceded that it was inevitable fuel subsidies would have to go, it should have been done gradually so that the people and businesses can prepare for it.

He has a piece of advice for the government.

"It should now deliver fast on its promises of using the billions saved from the subsidies to improve public transportation," he said.

The government should also start spending the extra money into improving - and not privatising - health services, the education system and cheaper housing for the poor.

No credibility

Meanwhile, Opposition Leader Lim Kit Siang said that there is "credibility" for Najib to talk about good governance to justify the RM4.4 billion burden imposed on Malaysians as a result of the hefty oil price increases.

This is because there have been "no results in campaign against corruption, wastage of public funds and inefficient public service delivery system in 28 months".

"It is all very well for Najib to call on Malaysians to change their lifestyle and adapt to the inevitable fuel price increase, but is the government and its leaders, including cabinet ministers, prepared to set the example of such lifestyle change?" asked Lim.

He added that Najib has not made any credible case for the heftiest oil price increases in the nation's history, which will cause a "most vicious inflationary

spiral of prices".

"Rocketing world oil prices are a boon not only to the government in terms of higher oil revenues but also for the coffers of (national oil company) Petronas.

"Malaysians are not convinced why they should not benefit from the nation being a net oil exporter and why there should not be greater accountability, transparency and parliamentary scrutiny in the disbursement of Petronas funds from its vast profits, especially when there had been extravagant and profligate expenditures in the past which had not been properly accounted to the people."