MALAYSIANS MUST ADJUST TO PRICE INCREASES, SAYS MAHATHIR

KUALA LUMPUR, June 16 (Bernama) -- Malaysians need to make adjustments in
facing increases in prices as the proceeds from fuel subsidy withdrawals could
be used for the overall benefit of the people.

Making this call, former Prime Minister, Dr Mahathir Mohamed said while
the subsidy at present eased the burden of those who can actually afford a car,
it could be utilised for better transportation infrastructures like roads.

"Of course the government can give subsisidies, but how long can they
sustain that. Inflation is something we have to put with throughout our lives
and the same money can be used for other things," he said.

He was speaking to reporters after chairing the Round Table On The Knowledge
Economy themed 'Bridging The Knowledge Divide - Building The Malaysian Link'
here Tuesday.

"It's not that we shouldn't subsidise at all, but we should be very careful
about how much we subsidise. There are those with no cars and we can
help them like providing better roads, but instead we have to use the money to
support the fuel consumers," he said.

Mahathir said that eventually there should be no subsidies at all, but
admitted that it will be extremely difficult, although increase in income should
cover the slow withdrawal of the subsidy.

He said the government's plan of shifting to a high income economy meant
that there was more value added products coming out of the country, in line with
having more knowledge.

Meanwhile, when asked to comment on the plan for a new RM800 million
(US$1=RM3.29) Parliament, Mahathir said the government should put the plan on
hold.

He said the fund should not necessarily be used for subsidy, but could be
channeled to other essentials like enhancing knowledge infrastructures, which
could have more multiplier effects.

Meanwhile, he said knowledge economy (k-economy) was something needed to
further develop Malaysia, although many were still confused on how it could
actually play a role.

"We have a certain amount of knowledge that have been used to develop this
country but we need more, especially the new findings in sciences. How can we
use them for our good?"

"Information technology, for example, if we know how to select the relevant
information, it will enable us to develop our country in the right direction."

Mahathir said Malaysia was not too backward in terms of knowledge as it has
made more progress than many other developing nations since the last war.

However, he said there were also hindrances to acquiring more knowledge such
as the government's retrogressive decision to teach science in school in Malay
Language.

"Today there is a certain knowledge and tomorrow it might be debunked. We
need access to the new knowledge immediately, and we cannot wait for it to be
translated into our languange and then only to learn it."

"There are not too many people that are fluent in both languages and
proficient in science, and even if there are, they would not spend their
lifetime translating.

"It is far better if you understand things in English and go straight to the
relevant papers," he added.

At the same event, Professor Pirjo Stahle of the Finalnd Futures Research
Centre said, the real bottle neck to a better k-economy here was education.

She said Malaysia put a lot of investment in education but was not getting
the same output.

That would be important, as the creativity and innovativeness needed
to further develop the country was based on people and their freedom to express
themselves and to think.

Stahle also suggested that Malaysia partnered other model countries such as
Finland in the education field.

"Research also shows that your teachers are really open for new education
and they want to improve their teaching. This may be a potential to help them
improve the schools and that would be a creative engine for the society," she
said.

-- BERNAMA