Treasury Disputes Idris Jala's Data

By Asrul Hadi Abdullah Sani
Malaysian Insider, June 08, 2010

KUALA LUMPUR, June 8 — The Ministry of Finance disputed today findings made by Datuk Idris Jala and his Performance Management and Delivery Unit (Pemandu) in his argument for immediate subsidy cuts, in a major embarrassment for the minister charged with overseeing the administration’s key performance indicators (KPIs).

Treasury officers briefed Barisan Nasional (BN) backbenchers in Parliament today and indicated Idris (picture), the former Malaysia Airlines boss hailed as a hero for turning around the national carrier, had overstated his case for subsidy cuts with flawed statistics.

Using Pemandu findings Idris had predicted Malaysia could be bankrupt by 2019 if it did not begin to cut subsidies for petrol, electricity, food and other staples, which he said cost the country RM74 billion last year.

Prime Minister Datuk Seri Najib Razak also moved today to quell fears raised by Idris that Malaysia would one day go the way of Greece and Iceland and become a bankrupt nation by pointing out the government was taking steps to ensure that the country’s debts would be reduced.

In a briefing for the BN Backbenchers Club (BNBBC), Treasury officers said the country’s total subsidy bill was only RM18.6 billion, and not RM74 billion as stated by Idris, for 2009.

According to Pemandu figures, the country’s total subsidy was RM74 billion, which is equivalent to RM12,900 per household.

Pemandu said the government subsidises RM23.5 billion for fuel, RM4.6 billion for infrastructure, RM3.1 billion for food and RM41.8 billion for social welfare (health, education and higher education).

But the Finance Ministry said today the country’s total subsidy was RM18.6 billion or equivalent to RM3,246 per household.

It said that RM7.1 billion was spent for fuel, RM0.8 billion for infrastructure, RM2.9 billion for food and RM7.8 billion for social welfare.

A copy of the briefing notes was made available to The Malaysian Insider.

The Treasury briefing is set to further alienate Idris as Najib has distanced himself from the former corporate captain’s warning and said that his estimations were merely based on Pemandu’s studies.

Former premier Tun Dr Mahathir Mohamad has also ridiculed the minister in the Prime Minister’s Department, saying that Idris was exaggerating.

The Malaysian Insider understands that Idris has come under fire from Cabinet colleagues because his remarks had undermined Najib’s government.

Pemandu is also holding a briefing for the BNBBC tonight after many BN leaders had expressed dismay over Idris’s bankruptcy remarks.

The briefing is aimed at explaining its findings and receiving feedback from members of the BNBBC.

Lawmakers from both BN and Pakatan Rakyat (PR) have agreed that an immediate implementation of any subsidy cuts would spell political suicide for the Najib administration with the next general election within the next 34 months.

Najib has also stressed that the public would have the final say on whether expensive subsidies would be cut.