The subsidies given by the government to the people throughout the country including electricity, fuel, and food are expected to exceed RM81 billion this year, said Prime Minister Datuk Seri Anwar Ibrahim.
He said that even though the figure is seen as high, reducing the total subsidy without looking at the needs of the people is not a choice for the government to ensure the people are not burdened especially by the current cost of living.
Therefore, he said the rationalisation of subsidies being implemented by the government is important in ensuring the people are assisted while the country’s economy remains strong.
“Subsidy is an intervention by the government to ease the people’s burden. Subsidies for chicken and eggs amounted to RM3.8 billion but reducing the subsidies would not be an option as it would raise the cost of living for the people, therefore a more resilient policy is needed to reduce (subsidies) which is the rationalisation of subsidies.
“With such a (high) amount of subsidies, no country can survive, some will be lessened,” he said.
Anwar said through the rationalisation measure, electricity subsidy for one percent of the wealthiest group has been canceled but 99 percent of the people are not affected.
The Prime Minister said he recently asked Tabung Haji (TH) to review all subsidies for the cost of performing pilgrimage for the rich in which the cost of the subsidy for that group could be used by Muslims that need it more.
“I requested this rationalisation from the Muslim community, the richest are not given subsidies to help other pilgrims, and it was well received. There are 400 pilgrims who are eligible for the subsidy (hajj) but turned down the subsidy to help others pay the cost of the hajj.”
Anwar said many people repeated his statement in 2008 saying “Today we win, tomorrow the price of oil will fall” and he explained that in that year the price of oil in Malaysia was higher than oil producers like Saudi Arabia.
“Now the cost has increased many times, the price of oil in Saudi Arabia is higher than Malaysia, and Brunei is a little lower. We help the people with this allowance, support, and subsidy (oil) support. We explain this, especially to the people, we are sincere and responsible and do not politicise the issue.”
He also said the government’s move to provide subsidies of RM950 per tonne of imported white rice to Sabah and Sarawak was necessary to help the people, especially the poor in the state.
“There is no way we want to see the poor people of Sabah burdened by the soaring price of rice. There are places where the price of rice is RM45, RM41, RM39 (a 10kg pack), so with this subsidy, we can lower the price to RM31 and reduce the burden and pressure on the people.”
He said for the interior areas of Sabah and Sarawak, a mechanism to ensure the price of rice does not increase due to transport costs will be discussed.
In the meantime, Anwar thanked the 12 representatives and leaders from Pakatan Harapan (Harapan) Sabah who had withdrawn the suit to the Federal Government regarding the implementation of the Malaysia Agreement 1963 (MA63).
“Since we took over the government, the Chief Minister (Hajiji) is well aware that I have directed all our efforts to implement what we promised. I assure you, close relations and cooperation with my friend Datuk Seri Hajiji we will continue to improve efforts and listen to what- what other steps are specified.”
