The result, PR managed to show great financial record but the effect on rakyat is bad as price of property rises.
This is how PR make their promises, sweet, but they never inform rakyat about the consequences.
The law of economy proves that everything will lead to domino effect. If one cost is abolished, it would not be gone, instead, it will just be removed to some other place. For example, a shop offers a free gift, the owner of the shop would still have to cover the cost of those free gifts. That is why, to cover the cost, the owner might have to increase price on other things such as delivery etc, From there, price of other goods increases.
In their manifesto this time around, PR promises to reduce fuel price immediately, on May 7, 2013 as soon as they win GE13. Next, 30 days before they rule, they would abolish PTPTN and begin abolishing tolls in stages.
Abolishing PTPTN would lead to the fact that the government would have to bear debt worth RM26.9 billion as well as funding cost worth RM10.8 billion. The repayment which has been accepted until January 31, RM3.8 billion need to be returned to loaners who have paid their debt.
Would PR supporters even ask on how is it possible for their leaders to cover these costs? Would income tax be increased?
The cost in acquisition of all 19 highway concessionaires will cost between RM50-RM100 billion. If the government were to buy the concession, RM100 billion will be gone just like that. This means half of the country’s budget will be melted only to pay for private companies and the government can never afford to give bonus, develop infrastructure as well as providing good health care. In other words, abolishing tolls alone will cost two thirds of the Federal Government’s total income.
The cost still does not include operation cost as well as maintenance cost for those highways. Based on the current cost covered by PLUS, routine maintenance work – RM235 million, administration cost – RM349 million, settling debt – RM410 million. Roughly, operation and managing highways will cost at least RM2 billion annually.
Would PR supporters question where would their leaders find the money? What about staffs who are involved with toll collection? Where would they go since DAP has promised that they would reduce number of civil servants?
All of these costs would have to be covered by PR government and where would they get such funds within such short notice, and to keep pumping it in?
What is more interesting, PR promised all of these things within 30 days. It seems like Malaysia might fall to bankruptcy in just 30 days.