1. In addition to taking measures to cushion the impact of the sudden fuel price hike, the federal government should quickly bridge the credibility gap which has led to persistent negative public perception and reaction.

2. From feedback we received, a week after the fuel price hike, despite various government announcements, members of the general public are still feeling unhappy and skeptical towards the government.

3. To address the issue of credibility gap, the government must hasten the pace of reform in various institutions such as the judiciary, the anti-corruption agency and the police force.

4. Though not perceived as being directly related to the fuel price hike, concrete steps to reform these institutions will assure the public that the country’s revenue and their tax money will not go to waste due to corruption and leakages.

5. At the same time, the government must also take immediate concrete steps to improve public transportation by abolishing road tax for taxis, factory and school buses, etc, while pushing to put more buses on the road. The government should subsidise public transportation to make it more affordable and accessible to the common people.

6. Hastening the pace of institutional reform and improving public transport will restore public confidence and reduce the credibility gap. The public will then be more ready to accept and even support this unpopular yet necessary policy to reduce fuel subsidy.

7. The public will also be more willing to share the burden of higher fuel costs, adjust to a more prudent lifestyle, adopt resource-conservation measures and shift to public transportation.

8. We shall then get the desirable results of having government credibility restored and ensuring economic and ecological sustainability. The fuel price hike may turn out to be a blessing in disguise.

Tan Sri Dr. Koh Tsu Koon
Acting President PGRM