A suitable mechanism of action for the implementation of targeted subsidy is being formulated to ensure that the assistance provided by the government will be received by the deserving groups, said Prime Minister Datuk Seri Ismail Sabri Yaakob.
He said various aspects of the mechanism needed to be fine-tuned so that the allocation set aside by the government to help the people of the country did not end up being arbitrarily enjoyed by irresponsible parties, including foreigners.
“Yes, the government has suffered a massive loss due to untargeted subsidies as all quarters were enjoying subsidies which are meant for a more deserving group, which is the poor,” he said during Question Time at the Dewan Rakyat sitting on Monday (July 18).
He said this in reply to Datuk Seri Anwar Ibrahim (PH-Port Dickson), who wanted to know the government’s move in addressing the leakage of subsidies which currently are being enjoyed by foreigners and the rich.
The prime minister said the matter also had been raised and studied by previous governments, but could not be implemented thus far.
Ismail Sabri said the government is also in the midst of combating smuggling activities involving subsidised items, such as cooking oil, at the industrial level and at national borders.
He said the authorities would also conduct audits on manufacturers and get detailed information on their buyers.
“The easiest misappropriation (of the subsidies) would be at the repackers level as they were allowed to repack, for example, a tonne of cooking oil, but where was the oil sent and who were the recipients? These are the details we want to get from the factories,” he said.
To combat smuggling activities at the borders, he said the government had ordered the Royal Malaysia Police and the Armed Forces to be involved, apart from the enforcement team from the Ministry of Domestic Trade and Consumers Affairs.
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