Subsidies to cost govt RM100bil unless reforms made, says Rafizi


KUALA LUMPUR: The government will have to bear up to RM100bil in subsidies every year unless the subsidy system is reformed, says Economy Minister Rafizi Ramli.

The Pandan MP said in 2022, the government allocated over RM80bil for subsidies and according to him, this figure only involved subsidies for RON95 petrol, diesel, LPG and electricity.

"Today, the world crude oil price has reached US$95 per barrel and is expected to increase to US$100 per barrel soon.

"At these price, the subsidy borne by the government will reach RM100bil unless we reform our subsidy system.

"So rationally, we are aware that the spending should be targeted to those who are actually in need and the remaining (money) can be used for public service and national development.

"The question is, what is the most fair method for the public so that we can offset the macro effects such as inflation? The answer is the Central Database Hub (Padu), a mechanism that can ensure the success of this targeted subsidy policy," he told the Dewan Rakyat on Tuesday (Sept 19).

Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) then interjected and pointed out that targeted subsidies may affect the T20 the most given that the group's salary scale did not reach millions of ringgit.

With such a concern in mind, Dr Wee urged the government to explain the method it would employ to ensure no one would be neglected.

"If we take the salary of T20 into factor, we cannot compare this group with millionaires who make RM1mil profits every month.

"This means that the T20 group will be affected the most here. So, please explain the method to prevent this," he said.

In response, Rafizi said the Padu database would include several key aspects such as income, number of households, dependents, locality, distance to workplace, as well as ownership of assets such as houses, vehicles and land.

"Previous governments only used income as the indicator which was why focus was only given on B40 while the M40 was neglected.

"Therefore this time, we will include various criteria (for subsidy recipients) instead of only using income as the key aspect because we want to ensure no one is neglected," Rafizi said.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Nation

Fair to all on Friday: Netizens laud Johor's two-hour break
Policeman charged with stealing jewellery from deceased woman
Sabah to restore 400,000ha of degraded forest as timber plantations
Two brothers plead not guilty for causing fire through fireworks in Teluk Intan
Airlines in Asean to have stopover rights in all member states soon, says Loke
Water supply disruptions, land prices among challenges in Penang's Silicon Valley ambitions
Taiwan court orders murderer of Malaysian student to pay family compensation of RM876,000
Arraignment of Syrian national in British passport forgery case postponed
Natural Resources Ministry reaffirms goal to reach net-zero carbon emissions by 2050
Cops to seek AGC's advice in completing probe of Teoh Beng Hock's death, says IGP

Others Also Read