Categories
Politics & government

[1721] Of PAS in Pakatan Rakyat

Utusan Malaysia is actively disseminating the idea that PAS should part ways with Pakatan Rakyat. The paper suggests that DAP and PKR are treating PAS disrespectfully and it insists that PAS should quit the political alliance because of that.

The allegation of how PAS being treated is something I only take with a grain of salt. The daily after all has a not-too-innocent reputation of manipulating issues to suit its political bias. The motive of the daily is as clear as daylight.

Clear as it may be, the less than perfect relationship between PAS and their partners in Pakatan Rakyat is for everybody to witness. From the top of my head, the butt incident at the Kelana Jaya protest, the entertainment show at the Sultan of Selangor Cup and logging plan in Kedah are three issues which at least two of the three Pakatan Rakyat members do not find themselves on the same page.

Despite my misgiving for PAS, I do prefer the party to stay within the alliance and not work with UMNO. I voted for it on March 8 with my dissatisfaction against UMNO and Barisan Nasional in mind. Furthermore, I have learned to live with the fact that broad coalition is needed to achieve an end. And to a large extent, this cooperation has seen PAS being considerably contained from pursuing its political goals, much to my delight. My rationale for taking a pragmatic line works and that is not just due to limits imposed on the influence of the Islamist party but also due to the fact that I am content that we now have somewhat a small government.

This has humbled PAS. While indeed PAS has grown stronger in absolute terms, comparatively it does not do as well as PKR or DAP in terms of influence in policies. Prior to the election, I heard of complaints from PKR members of how arrogant PAS were in treating PKR. DAP also gave PKR the same treatment but the post-election scenario has realigned power in a way that PAS now find themselves at the bottom of the peaking order in the tripartite political alliance. This reality check does not bore well with PAS.

The cooperation between DAP and PKR is also something I celebrate. I believe in the merging of the two parties. While I celebrate, the closer relationship between DAP and PKR compared to either party with PAS gives the idea that DAP and PKR are not taking PAS seriously. Whatever PAS think, Utusan Malaysia and other media leaning toward UMNO certainly are trying to create division between the ranks of Pakatan Rakyat by highlighting the distance between DAP-PKR and PAS.

From the very beginning, the media close to UMNO have been trying to get PAS and PKR out of the coalition, stating that Malay unity is under threat. After sometimes, these media have referred to PKR less and less and are concentrating on PAS instead. From Malay unity, these media are concentrating on the sanctity of Islam, allegedly that it is under threat.

This is a beauty of politics I suppose. The narrative changes so quickly that one cannot remember what was the last one. Orwell in writing Nineteen Eighty-Four does not kid us about Oceania and Eastasia have always been friends with each other in warring Eurasia, except that last week, Ocean and Eurasia have always friends with each other fighting Eastasia.

Whatever it is, this is something that PAS has to figure out alone. They could stand their ground and work as part of Pakatan Rakyat or be enticed by offers from UMNO.

It has to be said though that the philosophical difference between the three, especially between DAP and PAS, was identified earlier as an issue that might prevent larger cooperation. Needless to say, bridging the gap requires effort. PAS can either invest in building that bridge or take the easy road to power by joining the likes of UMNO and pretend all that allegations of corruption they made against UMNO were just cheap words of politics.

If PAS leaves, I would certainly sorely miss it. But I would certainly remember it and would vow never vote for PAS again. PAS has only to prove me wrong with regard to my question of Sophie for me to vote against the Islamist party in the future.

Categories
Humor Politics & government

[1720] Of our international institutions

Too funny because it is so true:

Fair Use.

Categories
Liberty

[1719] Of Howard Roark’s speech in The Fountainhead

[youtube]Zc7oZ9yWqO4[/youtube]

Categories
Economics

[1718] Of would you rather have flexible prices, Jeff, or just cheaper prices?

MP Jeff Ooi said:

Yesterday, all four petrol companies in Singapore – Shell, Exxon-Mobil, Caltex and Singapore Petroleum Company – reduced their pump prices by 4 cents a liter for petrol. Diesel price remained unchanged at S$2.033/litre.

[…]

Currently, Malaysia retails petrol at RM2.70/litre and diesel at RM2.50/litre.

[…]

Incidentally, oil prices have fallen by about 7% since hitting a record high last Thursday. Oil prices fell to US$136 per barrel on Tuesday. (See Crude Oil price chart on the top right hand corner of this blog)

Will Malaysia defy the law of gravity, that what goes up must come down, and reduce the fuel burden on Joe Public? [Petrol price down… in Singapore. Screenshots. July 10 2008]

He seems to suggest that Malaysia should lower local fuel retail prices after global crude oil prices suffered a dip. Just like Singapore. He of course failed to identify or mention that prices in Singapore are free whereas Malaysian prices are inflexible due to our fuel subsidy regime.

As Friday has proven, the dip is merely temporary and more about fluctuation and not a general trend.[1] I am wondering if he would agree to increasing the retail prices whenever the global prices are up…

Whatever the MP feel, it would definitely be interesting if we have subsidy in an ad valorem manner. Under this arrangement, local prices will fluctuate according to global prices while the subsidy is set as a percentage of the fuel prices.

Regardless the cost and benefit of maintaining a subsidy, subsidy ad valorem-styled will certainly be a more robust policy compared to the current structure. More importantly, ad valorem subsidy will allow prices to act as a signal better compared to the current Malaysian policy.

The graph below illustrates the current subsidy program with local prices fixed regardless of global prices. The blue color represents the size of subsidy while yellow represent the amount paid for fuel by consumers. It makes our model far simpler if we assume that the consumer purchase only an unit of fuel per day. This assumption is made for simplicity’s sake and nothing else.

Some rights reserved.

As you can see, the subsidy merely acts as a buffer to fix local prices. If global prices actually go below the fixed level, tax is automatically introduced. Given expensive crude oil prices and the size of current subsidy at the moment, I doubt a tax would be introduced.

This policy probably be good if there is a tendency for global prices to revert to a mean. The fixed local prices can be the mean and this will mean in the long run, the cost of running the policy is zero, at least nominally.

The graph below illustrates ad valorem subsidy with the subsidy itself assumed to be at 40%:

Some rights reserved.

As you can see, the local price is capable of going low as global price drops, unlike as shown in the fixed local price structure. Depending on the subsidy, the size of subsidy can be made lower than what it will be under the other model.

The only weakness of ad valorem subsidy is that the subsidy lives on forever as long as the rate is above 0%. Compare this with the introduction of tax in the first scenario.

Due to reasons stated earlier — concerning signaling and robustness, as long as global prices do not fall below local fixed prices — regardless of my support for total elimination of fuel subsidy, ad valorem subsidy is better than the current fuel subsidy policy practiced by Malaysia.

And there you go: a simple analysis comparing two different subsidy policies.

I have a feeling that what Jeff wants is this…

Some rights reserved.

…which is totally an unreasonable and irresponsible policy.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

[1] NEW YORK, July 11 (UPI) — Crude oil prices eased back after setting a record above $147 per barrel on the New York Mercantile Exchange Friday. [Oil prices ease after record Friday. United Press International. July 11 2008]

Categories
Solar car

[1717] Of Michigan is the first to qualify for the 2008 NASC

A great news from the Michigan team:

My apologies for not posting this update sooner, but I’ve been in and out of the car most of the day. I was in the car when the team completed our first 60 laps of qualifying, quicker than any other team–making us the first team to qualify for NASC! It was a hot and grueling 60 laps during the morning, and I was in the car for over 3.5 hours to prepare for and complete these laps. We were the only team that did not have to exit the track between 9:00 AM and 12:30 AM–a testament to Continuum’s reliability and our team’s strength. [Qualifying Update. The University of Michigan Solar Car Team Blog. July 10 2008]

Zippity doo da, zippity a…!