Monday, June 16, 2008

WHAT SUBSIDY???

From an anonymous email:

The story about “subsidy”…

A man called Maha owns a farm which can produce 10 apples every day. He has 5 workers to operate the farm. Each of them eats 1 apple daily and it is enough to keep them operating the farm normally. The remaining 4 apples, the landlord sells them at RM10 each and he earns RM40. He uses RM25 to improve the farm operation and facilities. He gives RM2.00 to each of his workers and he keeps the remaining RM5.00 as profit. Day by day, the farm is well developed and all of the 5 workers are happy with the money they can save.

When Maha passed away and there is a new landlord, Abdul comes to continue the farm operation. He says to the workers: "We need to improve the farm quality and redefine our way of thinking. From now on all of you only need to pay RM1.00 for each apple you eat. It is very cheap as the price is RM10 each outside the farm." The workers have no choice but to pay RM1.00 for the apple they eat daily. Their earnings decrease from RM2.00 to RM1.00 per person. As usual, Abdul sells the 4 apples and he gets RM40. He uses RM25 for farm improvement and pays RM10 to his 5 workers. He gets RM5.00 as profit. On top of that, he gets another RM5.00 from the apples that he sells to his workers. In total, he gets RM10 as profit every day.

Soon, the apple price increases to RM20 each. The new landlord gets a higher profit as he gets RM80 for the 4 apples he sells daily. Then, he decides to give the farming improvement contract to one of his close friends, Samy. Samy says: "Apple cost naik, improvement cost also misti naik." So, the farm improvement cost increases from RM25 to RM50. In actual fact, the improvement only cost RM30. The remaining RM20, Abdul and Samy share evenly among themselves.

Let’s calculate how much Abdul gets daily:

RM10 (from farm improvement cost)
RM20 (Net profit by selling 4 apples: [Gross profit, RM80] - [Improvement cost, RM50] - [Wages RM10] = RM20)
RM5 (from selling apples to his workers)

In total, Abdul gets RM35 daily compared to RM10 initially when he took over the farm from Maha. His profit increases RM25 and the workers are still getting RM1.00 daily per person. The greedy Abdul does not want to stop there. One day, he says to his fellow workers: "You see ah, the current market price for one apple is RM20 and you are only paying RM1. See how lucky you are! I have to SUBSIDISE RM19.00 for each of the apples you buy and total I need to SUBSIDISE RM95.00.

This will greatly burden the farm and we might get bankrupt if we continue like this. In order to avoid bankruptcy, I need to increase the apple price that you buy from RM1.00 to RM1.50 and I will bear the remaining RM18.50 per apple as my subsidy to you all." So, greedy Abdul adds RM2.50 to his current profit and the number becomes RM37.50.

After you have read the story, I am sure you have already understood the meaning of “SUBSIDY” given by the government.

The RM95 subsidy never existed in the first place and neither did the RM52 billion fuel subsidy generously “given” by the government.

Cutting fuel subsidy is actually just a reason to steal money from your pocket.
Are you gonna stand there and let them rob you? smilies/angry.gif smilies/angry.gif

Sarawak Headhunter's Comment: Their heads must roll!

12 comments:

Anonymous said...

Hali-hali sakap-sakap itu sabsiii. Subsidi sana subsid sini. Gua manyak mingong ninga iti susbsidi. kalau RM52 juta kuat manyak o. Kalau convert dalam lui siling perpuloh puloh loli-loli beratur macam mahu muat itu batu-batu, pasir-pasir dari kuali lo. Itu Salawak headhunter kuat lihai pandai itu hitung itu sabsili. Bagut Pak Lah ambil lia jadi itu menteli kila wang punya. Dia banyak pandai kila itu sabsili. Wa ta guna belajar iku ekonomi tinggi-tinggi, kila sabsili pun tidak pandai. Babut itu Sarawak Headhunter jadi Peldana Mentili ganti itu Pak Lah. Lia kuat lihai pandai kila-kila subsili ini macam.

You kuat lihai.

Anonymous said...

you have done your homework well.Thanks for making it so simple and i am sure my 10 years daughter can understand it perfectly. May be you should send a copy of your "What Subsidy???" to Pah lak & his ministers to digest.

Anonymous said...

Dear Headhunter,

Talking about subsidy this and subsidy that the fact is the cost of living has gone up. Farmers, fishermen and people in low income group are suffering badly. People living in cities like Kuching, Sibu, Bintulu and Miri are also becoming poorer as real income has gone down. While we blame Pak Lah and Federal Government for the suffering, the big question is what can the Sarawak state government do to ease the people's burden. Sarawak allocates something like more that RM3 billion budget every year. Why not starting from next year's budget some money be allocated to help the poor not much maybe RM100 million. The state has money and can afford this. The state also should give more and increase the amount scholarships for students. The state has nothing to lose when investing in human capital as the students will graduate and contribute to the state's economy and development. By giving more and the bigger amount of scholarships, the parents' burden will be eased. The local government (LG) also have roles to play in easing the people's burden in view of this rising cost of living. The LG can reduce assessment rate, reduce the monthly parking rate, don't issue parking tickets anyhow you like as the people are suffering. I have heard people in miri complaining that the season monthly parking rate is RM80 ringgit and this is ridiculous and road tax for kancil is only RM20 for the whole year. You summon poor people you get back fired. Remember, I am Rosly Dhoby, I died for Sarawak because I want better life for all Sarawakians.

Rosly Dhoby.

Fernando said...

Which party do you think will form the next government of Malaysia ?

Express yourself at votingmalaysia.blogspot.com

free Sarawak said...

no project to kj/umnoputra

no sana-sini committe

no bodoh-kajian-like-how-to-drink-teh-tarik-in-the-moon-how-to-eat-sesuaikan-canai-be-able -be-eaten-in-the-moon

no more entertainmen allowances for pm,dpm,ministers,deputy ministers

no free cuti2 for cabinet members

no free water and electricity for cabinet members

tsalak said...

Most times we forget that doing good "pays" because of myopia or lack of general awareness of society and culture.

The story you paint is right out of George Orwell's "Animal Farm"!

Given those circumstances, there should be a revolution on that farm. If not there'll be a state a malaise so bad problems will be the order of the day. The farm will be in trouble, there'll be thefts, pest damage, injuries and even death. It's an onset for a broken system!

There's a another book which we should all revisit and that's NINETEEN EIGHTY FOUR. You can read it all H E R E and all online!

Some people believe 1984 is a MANUAL politicians are using TODAY!!! :(

But lest we forget, life is not ONLY about politics or even government. It's also about values that will put us in good stead. They may be cultural or religious but they transcend the pettiness bad politicians entrap themselves with.

Gen-O said...

Do you know there are mega damming projects coming to Sarawak? Check here:
http://www.bmf.ch/files/news/Sarawak_Energy_Confidential.pdf
also here:
http://www.malaysiakini.com/news/84715

Anonymous said...

Can anybody explain what will happen if Sarawak quit ... maybe as something like Brunei, or Singapore??? Could it be better? Sarawak economical strength is very high, but why still so many people MEREMPAT out there??? Where have all the money gone??? I believe, we have our own strength, we have our very own oil rigs, timber, BAKUN DAM project, etc ... to strengthen our economy. Why do we get RM300 in Swk for the same job that pay RM600 somewhere out there??? No wonder so many Sarawakians are moving out to Malaya. Hm .. but that's good, so that everyone can fly!!!

The People's Power said...

With 12 mega dam projects plan for us, these man made lakes will put Sarawakians' life at the edge of the knife. We will have to live like beruk coming down and climbing up to the trees every nite and day to check the water level on ground. Imagine how are we going to evacuate or save victims from the large area of Sarawak should these dams bust? Human casualties will be very high!!! By then, more and more Sarawakians will migrate and Sarawak will be forced to become padang jarak padang terkukur.

Anonymous said...

I luv to say that its better if sarawak people know their right from now on..Logically, sarawak has a lots of profit that come from timber, oil and from other sources that i believe everyone understand especially sarawakian la.kalo tak tau msk tadika bljar lg tau kalo tak faham gak tak faham la aku..Nang bebal la org ya..This sources should make sarawakian's life much better compare to other country that did not hav anything..(Tak betul ke)I'm so curious where is our money...But when i see in Miri(not only miri ) especially org2 terhormat la yg kononnya time election promise a lot of things to their supporter, they can build big house, drive big car etc...Sad to say after the election it very hard to see their face again...Tak tau menyorok kat mn dh...lazy to comment a lots...Buang masa jak...Sendiri mok paham la....Sarawakian we better choose independent..Jgn biarkan org luar buli kita and ambil kita punya hasil pribumi yg spatutnya kita punya...Plzzzzzzzzzz

The Son of Asia said...

Who should be the next PM ?

Express your feeling at votingmalaysia.blogspot.com

SmartFish said...

Hi brother headhunter,

I suggest you better replace AAB as the minister of finance. Otherwise our country will be bankrupt under his poor administration. I believe you realized about the facts.