MALACCA: Chief Minister Datuk Seri Mohd Ali Rustam has described the fuel price increase and subsidy scheme as appropriate policy to ensure that the subsidy goes to the needy, reports Jason Gerald.

"Although those who do not deserve the subsidy would have to pay more, the poor will still receive a cash rebate

"This will ease the burden of those in the lower-income group."

He urged the people to change their lifestyle, stressing that the fuel price increase was inevitable, given rising global prices.

Mohd Ali suggested that Malaysians use public transport or carpool.

"Now is the time for Malaysians to rally around and help the government overcome the global oil crisis.

"We have to acknowledge the fact that the prices of petrol and diesel in Malaysia are still the lowest in the region."

In Kota Baru, a Pas government spokesman said they were supporting the price increase and subsidy scheme as the poor would still be assisted.

In Ipoh, Brenda Lim and Veena Babulal report that state Local Government and Public Transport Committee chairman Nga Kor Ming has described the subsidy scheme a failure.

"It has failed to address the crux of the issue, as a major portion of fuel subsidies is enjoyed by independent power producers."

He called on the government to reveal the contracts signed with IPPs.

Ipoh City Watch president Chan Kok Sun said money saved from reducing fuel subsidies should be used to improve the public transport system and subsidise transportation companies.

Chan said Malaysians would use public transport if the system was efficient and dependable.

On the proposal for higher power tariffs, he said Tenaga Nasional Bhd's monopoly in the peninsula should be abolished.

In George Town, Deputy Chief Minister II Dr P. Ramasamy criticised the cash-back system for motorcyclists and owners of small cars, Phuah Ken Lin and Adie Suri Zulkefli report.

He said the rich could abuse the system by buying smaller cars and using motorcycles.

He also questioned the rationale behind the imminent increase in electricity tariff.

Ramasamy said he was concerned that the power tariff increase would have a domino effect on prices of goods and services.

"I do not think that it is a wise move to raise the tariff now in view of rising food prices."

State Umno liaison committee deputy chairman Datuk Seri Abdul Rashid Abdullah said the people should accept the fact that the government had been subsidising fuel prices for a long time and could no longer do so.

"The government has listened to suggestions that those who can afford luxury or bigger vehicles must pay more at the pump."

On the electricity tariffs, Abdul Rashid said the government should not be made to absorb the escalating cost of producing electricity.

In Shah Alam, Neville Spykerman reports that Menteri Besar Tan Sri Khalid Ibrahim was concerned about the implementation of the subsidy scheme.

Khalid said although the cash-back system was good in theory, owners of small cars may not necessarily be driving them.

He, however, welcomed the move not to increase the price of LPG cooking gas or compressed natural gas.

In Kota Kinabalu, Consumer Association of Sabah and Labuan (CASH) president Datuk Patrick Sindu urged the people to make changes to their lifestyle.

Sindu, who is attending a food security conference in Rome, said rising prices of fuel, food and other items was a global problem and Malaysians could not be insulated forever, Jaswinder Kaur reports.

Sindu said the decision not to increase the price of cooking gas was probably to "pacify" the people.

Voluntary price watch group Rakan Pengguna Sabah (Sabah Consumer Friend) chairperson Datuk Amisah Yassin said she hoped traders would not raise prices of goods and services.

"We welcome any move taken by the government to assist the lower-income group but if traders take advantage of the situation, we are back to square one."

Amisah urged consumers and Rakan Pengguna members to write to the Domestic Trade and Consumer Affairs Ministry to complain about traders who charged unreasonable rates for goods and services.