Bank Negara Malaysia (BNM) has said the transition from blanket to targeted subsidies should only be carried out when the country is no longer facing high inflationary pressures, according to a report by The Edge.
The central bank’s governor, Tan Sri Nor Shamsiah Mohd Yunus, explained during a press conference on Malaysia’s 2Q22 GDP performance that the implementation of targeted subsidies should be done in phases and take into account current inflation. “Assistance needs to be given to the vulnerable sectors,” she said.
Nor Shamsiah added that switching to targeted subsidies from a blanket regime will push up inflation, although the savings from the transition can be used to support mechanisms like social protection programmes.
Finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said earlier this week that it is too early to introduce targeted subsidies in Budget 2023 as global inflation is still high.
The global inflation rate in June 2022 was 6.7% (5.6% in emerging economies), while Malaysia registered a 12-month high of 3.4% in the same month. BNM forecasted in its July monetary policy statement that is expects headline inflation to average between 2.2% and 3.2% this year – the year-to-date average is currently 2.4%.
The matter of targeted subsidies has been raised several times before, with fuel being one of the major focal points. In another report, The Edge reported that the government will spend some RM37.3 billion on the current blanket fuel subsidy, most of which benefits higher-income groups.
That amount makes up a huge chunk of the RM77.7 billion the government is expected to spend on subsidies and cash aids for 2022, which is more than double the initial estimate of RM31 billion for this year.
While a targeted fuel subsidy scheme won’t be introduced in the coming days, Tengku Zafrul said last month that a mechanism for such a scheme is being tested involving e-wallets and is expected to take between three and six months before it is implemented.
Looking to sell your car? Sell it with Carro.
Sebenarnya tak de plan mcm mana nak buat pun..
geng BN Bangang Nasional reti sakau makan Rasuah jer , nak buat apa pun tak tau…
“Targeted Subsidy” lepasi orang kaya
Skg hukum orang miskin dgn
“End-of-Life policy”
Hebat Be End
Buat buat topic je viral je, tak kan jadi punya, sebab tak akan ada formula yg manpu target subsidy… hanya 1 formula, car no tax, fuel follow market price.
The “smart” finance minister’s mind is very straight forward, to cut T20 subsidiary to save money to go into their pockets. T20 nind is even more straight forward, you cut my subsidiary, I earn back by raising the price of my goods and services. So, M40 and B40 be ready to be charged more expensive!
Daripada cut sana sini especially from T20 group. Better cari investor…
Well that’s what GST 2.0 is for JENG JENG JENG!
Then T20s would not be able to pass on their extra cost onto end customers. Win win for all, except T20s.
GST is welcome. Everyone need to pay, no exception!
Finally someone said something that makes sense. Roti canai at saw kayu costs 2.50 a piece now. Remove fuel subsidy, it won’t be surprised 2 pcs roti kosong and a tech tarik will go beyond rm12
As much sense as closing stable doors after the horse has bolted. No, actions have to be taken now when inflation is still under control, not when Gohmen has ran out of money and everybody suffers as in Sri Lanka.
Or do you meant to say too much bad press about corruption lately so we give you guys some sweets since its election time. If we win you get a bigger Lollipop for the special ones while the others gets the stick.
12 month high of 3.4%? More like 34% looking at the price hikes I see out there.
India just raised fuel prices by 50%. No you haven’t seen real inflation that has hit the world yet. Ours at 4% is nothing compared.
Tengku Z…I dare u…raise petrol prices after Merdeka.
GARMEN should concentrate on combating leakages and corruption.
Look at the billion dollar Littoral combat ship(or shit).Rm6 billion paid for an “illusion or mirage” combat ships.How can the Treasury pay for “Uncompleted n uncertified “terbengkalai” combat ship? Hello,u need rocket science?
It is like Public bank giving financing to a ghost/mock up highrise condo.Will Tan Sri Teh give instruction to disburse funds?
BN Governor has her point.
Please no more hunting for T20. This is not even a exclusive rich group.
Mr Minister, just your allowance (pocket money) makes you at least tvT1, the very Top1.
The breakdown of allowances that ministers can claim on a monthly basis are:
RM12,000: Entertainment allowance
RM4,000: Cabinet minister’s allowance
RM4,000: Housing allowance (not claimable if residing in an official residence)
RM2,500: Domestic helper allowance
RM2,500: Driver allowance
This totals $25k per month allowance, $300k per year.
And then MPs in Dewan rakyat:
RM400 per day: Attendance for Parliamentary sittings
RM300 per day: Attendance for government agency meetings or workshops
RM2,500 per month: Entertainment allowance
RM1,500 per month: Special payment (except if the MP is member of the administration)
RM1,500 per month: Fixed travel allowance
RM1,500 per month: Fuel allowance
RM300 per month: Toll allowance
RM1,500 per month: Driver allowance
RM1,500: Black-tie attire subsidy
You further enjoy travel, fuel, toll allowances totaling $3.3k.
So if you make so much noise about T20, please propose to cut all the allowances for ministers and MPs. You guys enjoy free police escort, free fuel, free ini itu, and you sit in parliament suggesting to further torture T20. Go chase after all MPs and Ministers, then T1. The rest of T19 are just small fries. A household under T20 category is only 15k per month, 180k per year. That household couldnt even match your pocket money allowance, which is only 60% of your allowance!! Just allowance!!
Why T20s so scare gov take their walking sticks? got used to it for so long ah?
Dude, its not scared. Its angry. T20 paid tens of thousands of taxes. And looks like T20 is not being appreciated at all, getting zero back from government, so much for being good citizens paying up the taxes while cronies enjoy tax breaks. Why you still envious T20 enjoy these, where everybody else get to enjoy when T20 is the group that contributed the most tax money in the first place? Walking stick is the targeted subsidy that the government is trying to do, alienating the T20, while making the B40/M40 thinking that government is doing good for them, securing the votes for next GE as well.
And you … if you are not T20 speaking, why dont you tell me how long you’ve got used to walking sticks all along then??
Bila biforti berbicara. Disalahkan T20.
Bangang punya PPR biforti.
Go sterilize your whole biforti family. So that they will not breed like stray cat to enjoy exorbitant tongkat that you get from taxpayer money.
Malaysia vs Singapore
Malaysia T20 > RM11,000 per household
Singapore T27 > $20,000 per household
Try convert to rm, and try to est thier T20 from T27.
When you add their salary including the allowance they are getting, most will find that they are far under productive for the country. By the way, is there a good reason that the T20 to continue to feed these ministers??
I think physically cutting the ministers in half works great in saving costs too.
Tax the rich no problemo
Target subsidy should only be implemented when we get rid of corruption in the government.
As it is, a blanket subsidy may not be perfect, but at least is going back to the rakyat.
Target subsidy is also a flawed approach in my opinion. You should not have different prices for different groups of people. It creates greater distortion within Malaysia.
Imagine you go to supermarket to buy cooking oil and there are 2 price tags.
Income tax is the correct tool to balance the wealth.
The purchasing power of income after tax should be the same for everyone.
subsidy or no subsidy, price of goods and service will increase every year , shop even notice with date of effect food price increase lol:
the t levels will simply just stop paying taxes
The idea is to contain the inflation as a whole. As a Malaysian, I am grateful for what the government is doing, spending more subsidies to contain the inflation. It will be paid off with higher economic growth and higher disposal income whic will drive the domestic demand in retail and services. High Inflation will kill our prosperity. No amount of pay raise will compensate the high inflation as it is compounded. It is an increase after an increase. So, thank you PM, MOF and the government of Malaysia.
Alamak, not going remove fuel subsidy?
I’m waiting for the removal.
Petrol price increase RM2 per liter, I can then have excuse to increase price of my Mee Goreng RM2 per plate and Air Suam Kosong RM2 per cup.
The higher the petrol price increase, the more times i can increase my revenue without ever reducing the price even when petrol price drops back.
Come on lah… quickly remove the fuel subsidy lah.
I’ve already booked a new Toyota Alphard to be used as my delivery van already.
My accountant also chasing me for the Alphard purchase receipt for tax evasion already.
The B40 and M40 needs this… We T20s are waiting.
Menu baru pun sudah print dah.
Some pay little taxes or no taxes but receive huge benefits
some pay lot of taxes never get anything
govt salary and allowance pay by who?
What do you expect from PPR biforti?
Makhluk kuat beranak, x reti jaga anak, merengek minta susu (bantuan), cerita sedih2, acah2 teraniaya etc…