Prime minister Datuk Seri Anwar Ibrahim has given relevant government ministries two weeks to discuss and analyse the matter of targeted subsidies, including that for fuel. He said it was imperative that steps should be taken quickly to ease the burden on the poor, given the rise in the cost of living and price of goods.
“I have given them a period of two weeks to analyse and explore all the implications (of targeted subsidies) and also discuss with the private sector and investors so that they understand that the purpose of the subsidy is to ease the burden of the poor,” he said at a press conference following a special National Action Council meeting with government departments and agencies over the weekend.
Present at the meeting were officials from the finance ministry, the ministry of agriculture and foor industries, the domestic trade and consumer affairs ministry, the ministry of energy and natural resources as well as those from the statistics department.
He said that following the formation of the cabinet, the ministers from these departments will discuss the results of these findings with their ministries as well as relevant agencies before presenting the results to the cabinet.
Anwar stated that he wasn’t against subsidies, but they had to be distributed to the right channels. “I have no problem with subsidies for the people, especially the poor. But our explanation in full, when it comes, is that this sub-section should be targeted. Otherwise, like in the case of fuel subsidies, the subsidy benefits everyone, including the rich,” he said.
“The rich should not benefit. For industries, concessions such as improved incentives and other benefits will be provided so that the removal (of subsidies) will not burden them,” he added.
The new PM also touched on the subject of electricity tariffs, saying they would have to be reviewed as the benefits received by the poor are almost the same as that for the rich. “For me, it is not reasonable, because while it is called a subsidy, it benefits others,” he said.
While stating that the subsidy for electricity would continue, he said that the rich and big industries should not receive subsidies because it would be a huge financial burden to the government.
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If electricity for big indusries are reduced or removed, it would drive prices up and we’re back to square one.
The focus should be on efficient use of electricity by all parties instead.
From there can move on to maximising renewable energy.
Don’t care. If reduce or no subsidy also fine. At last, all the cost will be bare by end-user (customer).
Instead find all the loopholes such as curi elektrik, main subsidi minyak, etc…
it’s less then 1week since elected. But how come midin, mael or even Najib not as smart as DSAI..
At least najib and mael are improving and better than midin though not perfect as DSAI, but almost perfect
maybe starts at retail mall industry one of the major electricity wastage consumption everyday before 10am until pass midnight cinemas bistros pubs etc
If he goes for targeted subsidy, he will anger the T20 that had benefited and vice versa supported him.
If he removes subsidy, he will anger the B40 that didn’t vote for him.
If he keeps subsidies, he will anger the M40 that massively voted him for Change.
Whichever the case, he is a doomed PM.
If Muhyiddin becomes PM, worst still, prices will be higher, more business will close down, fuel prices subsidy will also be removed, no democratic process, would be forced Malaysians to migrate other countries, not caring about poor but only care for the rich and stealing people’s money
2 X 5
What is poor? What is rich?
(ron95/diesel) Quota
Base on how many cars they own?
Base on what car they drive?
Base on how old the car is?
Base on NETT annual income?
(kWh) Quota
Base on residential type?
Base on residential value?
Base on residential PSF value?
Just maintain the blardy pump price.
B40,M40..dont touch them.
Tax the T20 and super rich kau kau since they shouldnt be getting subsidies.
For commercial vehicles once u jack up,all hell will break loose..
As promised above
PH did not say about RM1.50 petrol for GE15 manifesto
Remove bulk subsidy for petrol and diesel.
If you say remove all, all poor and M40s people will get angry for removing fuel subsidies, that’s why our PM want use subsidies for fuel.
If can afford more expensive new-car that of same-category than P1/P2, shame U can’t pay for the fuel right?
Many wants subsidies price rather than floating price
Better don’t remove at all. Stay as remain. Give fuel subsidy for RON97
The rich is paying more for electric bill @ its Pricing Bracket Tariff.
Electric bill, rich use more, larger house, more A/C, more Fridge, larger TV, so paying more bill – so there is no issue.
But for petrol it is different….
Some poor travel far, some rich travel short distance.
Petrol is parcel of life expenses for many poor, even T20 can be using huge Petrol just for daily works.
It’s just show weak is taxing system – only business allowed to declare travel as expenses, reducing for the tax. But working adults – taxing doesn’t consider his annual essential travel at all.? Many ppl stay @ places where lack of infra, need to travel very far for daily events like sending kids to schools, grocery, etc.
Self-employed can factor travel
cost as tax rebate la bro
U’re right on the electricity.
UNLESS!!! “CURI ELEKTRIK” laa
Give subsidies for M40 too
Wow, so 6 PN supporters that disliking this comment subsiding for B40 and M40, and giving to T20 only…that’s how PN supporters are brainless, never think for B40 and M40 when B40 and M40 are needed and PN supporters are unknowlegable people
That’s the reason why there are so many failures under PN. Already give chance for Muhyiddin and PN for the government but not just more than 1 year but worst experience ever, already promising to save the country but PN already cheated too many times to our rakyat, already making our people too much headache, wanting to close down more business, higher prices and PN always very racist. Never vote for PN again.
If we are to use b40/m40/t20 to represent working/middle/affluent social classes, I think it should be b60/m35/t5 instead.
B60 more subsidy M35 less and nothing for T5? Or everyone get the same subsidy, and it will play out just nice. Rm200 might be meaningful to working class but pocket change for the affluent class.
Not only just giving subsidies to B40, but should also give subsidies to M40 too
Wow, so 5 PN supporters that disliking this comment subsiding for B40 and M40, and so PN wants subsiding to T20 only, not B40 and M40…that’s how PN supporters are brainless, never think for B40 and M40 when B40 and M40 are needed and PN supporters are unknowlegable people
Must elsewhere give to all groups like B40, M40 and T20
Kenapa perlu 2 minggu bukan esok ke? Saya ULANG ESOK .
They have a “Raja Formula”. So this should settle already by now. Why need 2 weeks?
Unless their “Raja Formula” talk cock only, even those from their own parties pun tak percaya :)
U think government servants all gaji buta?
kan, sebelum pegang KERAjaan, bermacam-macam formula dorang keluarkan, semuanya hancing
Easy to say than done.
The biggest problem is already at trying to identify who are the target people to receive the subsidy. Based on what database? LHDN database which already has multiple loopholes? Rich people who evade tax and declare low income in LHDN database?
What about urban poor which their salary might perceived as M40 but living like B40 in high cost cities?
I do agree that the government need to tighten up those loopholes in the taxation system and gain more revenue from the business and the rich rather than trying to fix the subsidy.
Sebelum pegang KERAjaan semua boleh buat segera, dulu dia kata tak payah tunggu nak masa nak bincang lama-lama
the major question for targeted subsidy is, what will it be based on? Which database? How? Who will audit this?
We can see T20 lari cukai because they can. And B40 not getting enough help. And lets not forget the M40 which is often neglected simply because they are neither here nor there. M40 itself has many in need of assistance as 40% is a huge gap. You can be upper M40 or lower M40. Again back to same basic question, how do you ascertain of someone is in which group? How accurate is the data? Are they properly audited?
I thought anwar promised cheaper fuel? Cheaper toll?
beware cheaper fuel may leads to wastage by third world mentality consumers that never cherish goods services when its cheap.
Do not ignore the fact that fuel prices will indirectly affect prices of everything else in the market due to transportation cost.
Most of the T20 people are those salaried without option for tax avoidance.
In fact, the truly high income people, mostly stay within the M40 bracket with help of creative accountants.