This oversimplification of data extrapolated from the CIA's World Factbook may not paint an entirely accurate picture, but it still becomes obvious that whilst fuel subsidies can be sustained in Brunei without distorting the economy too much; in Malaysia the future probably isn't too rosy if subsidies are retained on a background of rising fuel consumption and decreasing oil exports.

Fuel prices in Malaysia should be allowed to float according to daily world prices, with a fixed profit margin for every litre of petrol or every kilo of cooking gas sold to the public. Khazanah Nasional should have also probably realised that petrol price has little influence on the sales of Proton cars nowadays and will have less objection to the subsidy being removed.

Diesel should remain subsidised until such time diesel-powered private vehicles become commonplace. If diesel is to be de-subsidised, there must be an accompanying plan to mitigate its impact on the cost of public and goods transportation.

The resultant savings from the government's reduced fuel subsidy bill should be channelled to boost the income of the lower and middle-class workers. Since this segment of population tends to consume less energy, their higher income should also help with daily expenses other than fuel.

The remainder from the savings can be invested in education and skills training, healthcare, public transport and the maintenance and improvement of infrastructure.

The savings also mean that the government can afford to further lower corporate tax and in doing so, encourage the private sector and multinationals to pay their workers a higher wage. We can no longer artificially suppress the wages of our private sector workers because everything we produce cheaply, China and Vietnam can do it at even lower cost. And there is no stopping these multinationals from further relocating to even cheaper locations in the future.

Since we cannot offer the cheapest workers around anymore, we should focus on offering a skilled and efficient multilingual workforce in niche areas, a business environment with minimal bureaucracy and corruption, an independent judiciary and the ability to produce goods and services to exacting standards.

The current global trend is also focussing on ethically-produced, environmentally-friendly (and organic – if possible) products, so it is worth looking into how we can incorporate these philosophies into the production and marketing of our goods and services.

The upper-middle classes and the elite should comprehend that the removal of fuel subsidies is not extreme socialism or a 'Robin Hood method' of solving the problem of income disparity. The subsidies have been in place for so long that one might become inclined to think that it is a right and not a privilege.

Think about those families who do not even own a car while you drive one of your European marques to the local sundry shop. Think about reducing Malaysia's carbon footprint as a higher petrol price means you decide to walk or cycle to that local shop instead. And think about the greater long-term good for the country in terms of returns from investments in education, healthcare and public transport.

The other point I wish to raise is, in fact, a proposal that was raised in a previous Budget but later scrapped ie, the proposal to raise the income tax exemption limit, reduce personal income tax and introduce Goods and Services Tax (GST).

It is an open secret that in the private sector eg, family-owned businesses or small and medium enterprises, there is invariably some under-reporting of revenue for the purpose of income tax evasion. It is, however, less easy to hide what one consumes. Therefore, a tax based on consumption is more transparent and equitable than a tax based solely on one's earning power.

The government should seriously consider implementing the GST system, with only essential goods under the current price control system being exempt.