Don’t let Budi95 fuel subsidies for citizens fuel xenophobia

By Mohammad Tariqur Rahman

State-funded privileges are often necessary to cure poverty or reduce the economic burden of the people, particularly disadvantaged groups.

However, certain forms of privilege, if sustained, normalise unearned advantages and foster a sense of being more deserving than others.

In the long run, they can cause feelings of superiority, increased self-interest, and diminished empathy – acting as a cancer for a civilised human society.

Prioritising privileges for one group of the population often creates complex political consequences, particularly when such policies spawn the seeds of oppression for another group of people.

In Malaysia, differences in prioritising privileges across different races in Malaysia have been a complex political and state agenda, often criticised as racial discrimination.

Article 8 of the Federal Constitution prohibits discrimination based on race, religion, descent, place of birth, or gender, providing a fundamental right to equality for all citizens.

Yet, Malaysia is not one of the 179 nations that have ratified the International Convention on the Elimination of All Forms of Racial Discrimination.

Malaysia’s recent introduction of the Budi Madani Ron 95 (Budi95) programme illustrates this tension. Under the Budi95 programme, all Malaysian citizens are privileged to enjoy a subsidised petrol price. This privilege is not extended to foreigners living in Malaysia.

Malaysian leaders have every right to adopt any policy they think is important for citizens. However, any attempt to justify a policy with a flimsy argument reflects its lack of strength and credibility. Can the Budi95 programme cause any harm to the nation greater than it gives back in monetary terms?

Presumably, Budi95 could save Malaysia between RM2.5bn and RM4bn a year in petrol subsidy that otherwise would have been enjoyed by the 878,000 foreign nationals, including 18,000 permanent residents (PR) holding a Malaysian driving licence, said Transport Minister Anthony Loke.

Policymakers seem to fail to remind the people of the other side of the coin.

Legally speaking, PRs are indeed foreign nationals. However, many of them are parents, spouses or siblings of Malaysian citizens. This subgroup of Malaysian citizens might not like the policies that go against the rights of their parents, spouses or siblings who are foreigners.

At the same time, many PRs are born, educated and have perhaps spent their lives in Malaysia. In their hearts, they are more Malaysian than the national identity they carry on their passports. Their sense of belonging and commitment to Malaysia cannot be measured in monetary terms.

Beyond PRs, there are more than 60,000 foreigners who have received Malaysia, My Second Home status. The MM2H programme started in 2002 to attract foreign nationals who would be interested in investing and living in Malaysia in exchange for depositing a substantial amount of money in the government account.

On average, each of the MM2H holders might have deposited not less than RM250,000. That might give a total of not less than RM15bn deposited in Malaysian banks. Besides, many of these foreign nationals might have invested in the business and housing sectors in Malaysia.

The revenue generated for the Malaysian government under the MM2H programme could be counted in the billions.

There are also about 250,000 skilled foreigners working in Malaysia. In addition to their contribution to the national economy in various professional sectors, the amount of taxes paid by them will be not less than RM1.2bn annually, considering an average payment of RM5,000 per year by each employee.

In addition, there are over two million low-, semi- or unskilled foreign workers who are mostly working in the manufacturing, construction and agriculture sectors in Malaysia. Contrary to the general perception, these foreign workers rarely compete with Malaysians for jobs. Rather, many Malaysian business owners, in fact, benefit from the presence of foreign workers by paying them lower wages and mostly without any other benefits.

There is no legal obligation for Malaysian government leaders to offer any privilege to any foreigners living or working in Malaysia. However, whether they have any moral obligation would depend on the moral values they prioritise in their political agenda.

It is confusing when foreigners’ contributions remain hidden, yet politicians readily spotlight how much they allegedly consume of the nation’s wealth.

Politicians and policymakers are mostly enthusiastic to report the crime and corruption of a bunch of undocumented foreigners. But they fail to reveal how thousands of tax-paying foreigners are secretly contributing to the development of the country.

Having immigrant populations is inevitable for any developed country and those that are aspiring to become one. It is a win-win situation. The immigrants enjoy a better living while the host nation uses (read exploits) their expertise. Malaysia is no exception.

Amidst growing global tensions over immigration, immigrant identity has become a key socio-political issue worldwide. Sadly, politicians in host countries do not consider immigrants’ voices simply because immigrants cannot vote.

While ordinary citizens have every right to enjoy the privilege of government-subsidised petrol to run their vehicles, there is no need to fuel feelings of superiority, increased self-interest and diminished empathy by adding flimsy arguments that hide the whole truth.

This, in the end, might fuel the fire of xenophobia that is already embedded in many so-called civilised societies.

Professor Mohammad Tariqur Rahman is the deputy executive director for development, research and innovation at the International Institute of Public Policy and Management, University of Malaya.

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