PUTRAJAYA: Subsidies will continue to be given but better coordination of delivery is needed so that the intended recipients benefit, says the Prime Minister.
Datuk Seri Anwar Ibrahim said stopping subsidies entirely would affect those in the lower- and middle-income groups.
“We will continue providing subsidies but there must be more effective coordination.
ALSO READ: Subsidies: A double-edged sword that must be dealt with carefully
“This is so that the rich and wealthy will not receive it and to prevent foreigners, some 3.5 million of them who are here, from enjoying what is meant to be enjoyed by our citizens,” he said during the Prime Minister's Department monthly assembly here on Monday (Oct 16).
Anwar said he was aware that points on the subsidies in Budget 2024 had been interpreted in different ways.
“Some are saying that the government is burdening the people, but it must be pointed out that decisions such as the one made on the electricity supply subsidy will only affect 10% of consumers, the T10 income category.
“The remaining 90% of consumers will not be affected by the subsidy rationalisation,” he added.
ALSO READ: Expect short-term volatility after removal of price cap
By removing the subsidy for wealthy consumers, the government would save RM4.6bil which could be put to better use, he said.
Similarly, the decision to lift price controls for chicken and eggs and let the market determine prices had also raised concerns among the public.
“All this while, we only controlled the price and imposed a ceiling during festive occasions.
“But now, we have forked out RM3.6bil to subsidise the produce when the price of these goods have come down over the past few weeks,” he said.
ALSO READ: Budget 2024: RM2.6bil for subsidies, incentives to benefit rice farmers, fishermen
The Prime Minister gave an assurance that the government would review the decision should chicken and egg supply issues arise again.
In Budget 2024, Anwar had announced that the temporary price controls would be lifted so that the market could function freely to ensure sufficient supply of chicken and eggs in the market.
Details of these measures would be announced by the Agriculture and Food Security Ministry in two weeks, he added.
