The move to rationalise subsidies will be implemented in stages beginning next year, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, also the Finance Minister, said the expenditure of subsidies under Budget 2024 was expected to increase to RM81 billion compared to RM64 billion under Budget 2023 due to the government’s move to maintain the prices of subsidised goods despite the unusual hike in world commodity prices.
“Although subsidised goods help the people to minimise the cost of living, the fact is that subsidies benefit the rich more and low prices have increased leakages and the smuggling of goods out of the country. In fact, subsidies are also enjoyed by more than 3.5 million foreigners.
“The savings from this subsidy (rationalisation) will be partly used to increase cash aid allocations through Sumbangan Tunai Rahmah from RM8 billion to RM10 billion,” he said when tabling the Malaysia Madani Budget 2024 in the Dewan Rakyat today.
Budget 2024 is the second budget tabled by Anwar since he was appointed Prime Minister on November 24 last year.
