There is a saving of approximately RM4 billion for the period from January to June this year involving electricity subsidies, following the government’s move to no longer provide full electricity tariff subsidies to large companies that use electricity at a high level from this year.
Deputy Minister of Finance II, Steven Sim Chee Keong said the government still bears the amount of electricity subsidies of RM10.8 billion compared to the original amount of RM14.9 billion.
He said more targeted and sustainable subsidy management is a priority, in ensuring that Government expenditure can be channeled to development needs that can provide higher added value to the national economy.
“The government is also studying the implementation of targeted subsidies based on appropriate models and feasibility by identifying methods that are not only effective, but also save time and have minimal financial implications for the government,” he said.
He said this when concluding the debate of the special session of the Dewan Negara on the Half-Term Review of the 12th Malaysia Plan in Parliament, today (September 25).
Meanwhile, Sim said that in the context of determining eligible subsidy recipients, it is also necessary to diversify because the type of subsidy and user groups are different.
“The determination of eligibility criteria is still under evaluation because it is very important that it is carefully studied so that the distribution of resources is made more efficiently while at the same time reducing exclusion and inclusion errors.
“In connection with that, a special task force that has been created under the Ministry of Finance is studying the mechanism for the implementation of appropriate targeted subsidies involving all community groups, whether B40, M40 or T20, whether in the city or rural areas,” he said.
