Formulating a targeted subsidy mechanism ‘complex’, but gov’t working on it as fast as possible – Anwar

Formulating a targeted subsidy mechanism ‘complex’, but gov’t working on it as fast as possible – Anwar

The government is still in the midst of formulating its proposed targeted subsidy mechanism, and it may be a while before anything is announced. According to prime minister Datuk Seri Anwar Ibrahim, this was because coming up with the mechanism is a complex undertaking and that its implementation would be no walk in the park, as The Star reports.

He added that while various mechanisms were being explored, nothing concrete has yet come about. “There is a team working on it now and there have been some proposals. But we are not too convinced in terms of its effectiveness after the implementation because it is very complex,” he said.

“With electricity, you can identify the house or factory, so it is okay. For diesel, sometimes it is the driver driving, or sometimes they use different cars by changing to small cars or big (expensive) cars,” he added.

Formulating a targeted subsidy mechanism ‘complex’, but gov’t working on it as fast as possible – Anwar

Given the complexity of the undertaking, Anwar said he did not want to make any promises as to when the targeted subsidies would be announced, but added that the government was working on it as fast as possible. “It is it is not a simple thing. If the mechanism is ready, the government is willing to roll it out tomorrow,” he explained. It has been previously reported that targeted fuel subsidies would begin with diesel from next year.

Getting the parameters right to ensure that the subsidies are delivered to the right parties is paramount, he said. “A targeted subsidy means it is for the people who need it, not for the very rich. For example, subsidies for the haj and electricity benefit even the rich, when they should ideally go to the deserving lot,” he said last week.

Last month, deputy finance minister Datuk Seri Ahmad Maslan had said the implementation framework for targeted subsidies was currently 75% complete, and that there were just a few issues left to be resolved, one of which is the method of implementation.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Nurul Izzah on Jun 19, 2023 at 11:01 am

    Anwar menang rakyat senang!

    Like or Dislike: Thumb up 22 Thumb down 15
    • Anwar Supporter on Jun 19, 2023 at 11:42 am

      Tax the rich, help the poor

      Like or Dislike: Thumb up 15 Thumb down 10
    • Can I advice u something..from Fat Mama on Jun 19, 2023 at 2:05 pm

      After State elections,if greenies sweep 3-4 states,u think they dare to float fuel prices?
      They will be doing damage control and busy dishing out more sweeteners to sooth the sore voters who voted against them.
      By 2024,after all the hoohaa,the fuel price stays locked at RM2.05…if it is needed to remain in power till 2026.
      The fuel subsidy thing can be a double edged sword.

      Like or Dislike: Thumb up 8 Thumb down 16
    • RM1.50/L petrol mana? on Jun 20, 2023 at 9:48 am

      Penipu siot! Tanye je mentri ekonomi lu si Rapizi, dia dah kira2 kan petrol harge RM 1.50 utk semue rakyat. Nape blum dilaksanakan?

      Like or Dislike: Thumb up 9 Thumb down 0
  • Janji dicapati on Jun 19, 2023 at 11:03 am

    Refer my name

    Like or Dislike: Thumb up 25 Thumb down 4
  • Kea Was on Jun 19, 2023 at 11:05 am

    Until today people are still awaiting for some fantasy calculations of how does T20 consume the bulk of petrol subsidy ??? Can they split their hands and bodies to drive their many newer less fuel consumption cars while this group usually have the least children too.

    Like or Dislike: Thumb up 20 Thumb down 1
  • MakanOil on Jun 19, 2023 at 11:17 am

    it’s sure expensive to implement than subsidy saving receiving.

    is USA/Singapore/Japanese implementing this idea.
    Flat rate is the cheapest way to manage, as a whole picture.

    in this digitalized world, tax saving receiving are them able to help B40? I feels it will be paying those Crony Management and Server!

    Like or Dislike: Thumb up 17 Thumb down 0
  • Yeah, please government, subsidize for 2.0L and below for poor as B40 and middle as M40 and don’t tax the rich. Even those T20 drove 2.0L and below, should be given the tax and not be subsidized.

    Like or Dislike: Thumb up 1 Thumb down 3
    • Read my corrected below. My comment above got few errors on the last part of first sentence

      Like or Dislike: Thumb up 2 Thumb down 1
    • Read my corrected below. Got few errors for nearly end of first sentence for my comment above

      Like or Dislike: Thumb up 9 Thumb down 2
    • You can tax but gomen cannot over tax. Currently our tax on profits one of the highest in asean. Even Scandinavia, germany and us have lower tax rates.

      Like or Dislike: Thumb up 0 Thumb down 1
      • But government are actually taxing for the rich as T20 including on fuel subsidy and not all have to tax. So poor as B40 and middle as M40 will not be tax given so will continue to give subsidy

        Like or Dislike: Thumb up 2 Thumb down 0
  • Yeah, please government, subsidize for 2.0L and below for poor as B40 and middle as M40 and don’t tax for poor and middle. Even those rich as T20 drove 2.0L and below, should be given the tax and not be subsidized.

    Like or Dislike: Thumb up 9 Thumb down 2
  • Just remove the subsidy and channel all the savings to improve public transport. This way, the jam will reduce and public transport will have better ridership. No need to build unnecessary hihgways which only benefit certain ctonies. Do not overthink and come up with a bigger problem. Subsidy mentality have to be stopped for good..

    Like or Dislike: Thumb up 15 Thumb down 0
    • And we will surely have a PN government very soon. Correct move but political suiside.

      Like or Dislike: Thumb up 5 Thumb down 15
      • If the government continues to make wrong decision just to remain in power, what good will that be for us. Be brave and help to turn this ailing country around. Subsidies are the biggest problem that makes the B40 complacent instead of fighting for their better future.

        Like or Dislike: Thumb up 1 Thumb down 0
    • Ah Chong on Jun 19, 2023 at 5:59 pm

      Abolish subsidy on Federal level. Let each state choose to subsidise or tax petrol, and any tax earn from petrol goes directly to fund the state’s infra. Let see which state become more modern, if you get what I mean.

      Like or Dislike: Thumb up 0 Thumb down 1
    • Just get rid of subsidy for sll and our rm will start to rise as long as money saved are not wasted. Reason why baht rise against RM because they stopped subsidies in energy. It has risen by 40% since. Public transport is very expensive to build and operate. Just klang valley alone cost gomen maybe RM80 bil on mrt construction.

      Like or Dislike: Thumb up 0 Thumb down 4
      • At least government are actually taxing for the rich as T20 only including on fuel subsidy and not all have to tax. So poor as B40 and middle as M40 will not be tax given so will continue to give subsidy and government didnt tax everything and also remove all subsidy

        Like or Dislike: Thumb up 1 Thumb down 0
  • Petrol consumption is based on amount of distance travel daily. Not numbers of car own . After all can only drive one at a time . Family with one car but having 4 school going children may have make few trips versus a T20 with 2 cars and 2 child with lesser trips .

    Like or Dislike: Thumb up 4 Thumb down 1
  • You give so much benefits to the B40 not that they will vote for you. They are only interested in EPF withdrawal.

    Better focus on the T60. At least they voted for you, paid taxes and contributed to the nation.

    Like or Dislike: Thumb up 20 Thumb down 5
    • Manifesto Dicapati on Jun 20, 2023 at 10:12 am

      The PH voting T20s cannot buy enuff votes to keep him in office. PH gomen is a fast sinking ship.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Petrol guzzling vehicle should be given lesser subsidy than more fuel efficient one . Higher consumption mean benefits more subsidy.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Old Cat on Jun 19, 2023 at 11:49 am

    T20 (those hardworking professionals, leaders at their own fields etc) the group that got taxed the most and yet received the least. These targeted subsidy policies will further drive them away from this country and worsen the brain drain. SMH.

    Like or Dislike: Thumb up 23 Thumb down 2
  • john is otak batu on Jun 19, 2023 at 11:53 am

    if able implement, should have done months ago. no point dragging. Obvious cannot be done. The worse will come if wrong implementation wrong place wrong time. next election.. done.. gone case…

    Like or Dislike: Thumb up 6 Thumb down 0
  • The non-B40 uses the subsidy to keep the economy moving (dining, entertainment, shopping).
    The B40 uses the petrol to rempit thus menyusahkan orang.

    Like or Dislike: Thumb up 10 Thumb down 3
  • FreakingAnnoyed on Jun 19, 2023 at 12:59 pm

    Removing subsidy for T20 is a good strategy but ensuring the savings go to proper use is an even more important mission. Government save save save and all masuk poket kroni for what.

    Like or Dislike: Thumb up 5 Thumb down 0
  • bizikot on Jun 19, 2023 at 1:06 pm

    It looks like the petrol station businesses are making their outdoor payment terminals more flexible in order to adapt to the targeted subsidy implementation.

    https://paultan.org/2023/06/14/bhpetrol-partners-maxis-for-digitalisation-of-outdoor-payment-terminals-at-stations-in-peninsular-malaysia/

    Like or Dislike: Thumb up 0 Thumb down 0
  • All the bosses tell your top sales that you will take their hard earned money to help lazy sales! I paid 24% of my income as income tax. Now, I am not allowed to enjoy subsidiary as Malaysia. I worked one day for nothing Every 4 working days! When I was studying my master after working hours or doing company project, sacrifying my rest time to read relevant management books, what were these B40 or M40 doing? My money dropped from sky?

    Like or Dislike: Thumb up 14 Thumb down 2
  • reduce the personal tax then only start looking into subsidies reduction. T20 who are honest, workaholic and on a payroll (cannot escape), pay for the subsidies indirectly. (in case some is too dumb, I am not talking about those big boss T20 who has the capacity to pretend to be B40 but in actual, income is beyond higher tier T20)

    Like or Dislike: Thumb up 9 Thumb down 1
  • Yes i'm T20 on Jun 19, 2023 at 2:44 pm

    Always B40 B40 , i’m agree rich help the poor but not until that extend everything B40 . 85% personal income tax is come from T20 group , what B40 contribute then ?

    Like or Dislike: Thumb up 9 Thumb down 1
  • DirtyModi on Jun 19, 2023 at 3:12 pm

    Why need to tax at all??? I thought we are OPEC plus country?? What happened to our oil revenue?? Songlap? Most OPEC countries gives back to their people. They either have low income tax or NO INCOME TAX at all. Tax our gaji, tax our cars, tax our electronics and now want to tax our fuel?? Halal ke macam ini??

    Like or Dislike: Thumb up 3 Thumb down 2
  • T20 kinda guy on Jun 19, 2023 at 3:45 pm

    I would argue that implementation is 99% of the work required in this policy, so they have not ironed out most of the things needed.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Bossku on Jun 19, 2023 at 7:40 pm

    This is Malaysia. Usually talk first, implementation last. They have no clue on how to implement it and that is the truth! It is the hardest part of this flip and the flop policy. I am very it would be very unpopular amongst the population. There is no way this abolishment of subsidy for the so-called “rich” people would not impact on the rest of the “poor”. Then again, Pakatan “Unity” has not even made a dent on the high inflation and even worse depreciating Ringgit. So, maybe it is time for a reset.

    Like or Dislike: Thumb up 1 Thumb down 0
  • dugong on Jun 19, 2023 at 7:43 pm

    What so great about B40 that they deserve special treatment? Did they pay extra tax to build up the country? NO! This garbage mentality has got to go. No double standard pls. B40 already don’t pay taxes, and they get BR1M which is collected from T20’s tax. Better you go after billionaire cronies.

    Like or Dislike: Thumb up 3 Thumb down 0
  • they shld reclassify subsidy as a drug! once hooked, you crave fo more!

    Like or Dislike: Thumb up 0 Thumb down 1
  • FRUSTRATED T20! on Jun 19, 2023 at 8:33 pm

    Anwar can not see the hidden cost of Chinese T20. If kids have excellent results, want to be doctor but the whole Malaysia has no local university able to give a seat to their kids. At the end, pay extremely high education fee to private university. If we have critical illness, go to government hospitals, no dif with go to hell. At the end, have to pay for extremely high insurance premium. Some other rich T20 still can enjoy discount when buying a house. But we have to pay full amount. When need to pay money always think of us but when there is something good, always without us!

    Like or Dislike: Thumb up 8 Thumb down 2
    • stasta on Jun 20, 2023 at 11:12 pm

      what to do, skin colour trumps all. majority are bigots who discriminate against minority

      Like or Dislike: Thumb up 0 Thumb down 3
  • Just get rid of subsidy for sll and our rm will start to rise as long as money saved are not wasted. Reason why baht rise against RM because they stopped subsidies in energy. It has risen by 40% since.

    Like or Dislike: Thumb up 0 Thumb down 1
  • bugger on Jun 20, 2023 at 12:32 am

    lol maslan tersalah cakap lagi..ahha 75% complete

    Like or Dislike: Thumb up 0 Thumb down 0
  • lolipop on Jun 20, 2023 at 2:12 am

    please lah, stop with this subsidy nonsense, soo much work to do. Just give more money aid for the needy and stop all subsidy, less work no need to hire more people to implement. Also less work for our customs and law enforcement.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Robinhood on Jun 20, 2023 at 8:46 am

    Malaysia has a govt that encourages people to be poor so they can enjoy the subsidies!!!! No wonder our country is so backwards!!!

    Like or Dislike: Thumb up 1 Thumb down 2
 

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