PUTRAJAYA – Targeted subsidies are the way to go as the government wants them to only benefit the deserving groups as well as avoiding leakages, said Prime Minister Datuk Seri Anwar Ibrahim.
He added that current subsidies for fuel, chicken and electricity are also enjoyed by the super-rich, about 3.5 million foreigners in the country, and some lost to smuggling activities.
“The government has been providing RM81 billion in subsidies, the highest in the world. I am often criticised for saying that ‘the day we come to power, the following day fuel prices will drop’.
“It is a different context because at that time, the oil price in Saudi Arabia was 50 sen, and now it’s RM2.85 there, while here it’s RM2.05 (a litre of RON95),” he said at the monthly assembly with staff of the Prime Minister’s Department, here today.
For example, he said the number of diesel vehicles has not increased yet there is a significant increase in fuel consumption.
“This means that diesel was being smuggled. That’s why we are improving the policies on diesel subsidies.”
Last Friday, Anwar during the tabling of Budget 2024 said the government would reduce subsidies for the top 10% of electricity consumers.
“In 2022, data indicated that the top 10% of electricity users received 50% of the subsidy, while the bottom 50% of users received only 10% of the subsidy.
“To address this imbalance, the government is implementing a targeted subsidy approach starting this year. This means that the highest 10% of electricity consumers will no longer receive subsidies, while the remaining 90% will continue to benefit from the subsidy.”
Last month, Economy Minister Rafizi Ramli said the national targeted subsidy programme was expected to be fully implemented next year as the Centralised Database Hub (Padu) would undergo a trial period in November, before opening in January for the public to verify their socio-economic information. – October 16, 2023