KUALA LUMPUR – The government may have no other option but to plug all existing leakages and make judicious use of public funds to boost its depleting coffers, said an economist, warning against cutting subsidies amid a gloomy economy.
This after Prime Minister Datuk Seri Ismail Sabri Yaakob said the government is “forced” to subsidise chicken prices and that the benefit is not meant for foreigners here, suggesting Putrajaya may be running out of funds.
Speaking to The Vibes, former Malaysian Institute of Economic Research chief Datuk Zakariah Abdul Rashid said the government has itself to blame for embarking on imprudent spending over the years, and argued that the current economic tribulation may merely be God’s response to the transgressions committed by those in power.
“The government may be operating on a shoestring, but they can’t just introduce new taxes now. The only way, for me, is to be prudent. Stop all the corruption and leakages and improve efficiency,” he said.
Also, how can the government say it doesn’t have money when GLC bosses are earning hundreds of thousands of ringgit? Isn’t it nonsense? It’s so difficult to even ask for a minimum wage increase, yet these people are getting paid extraordinarily.
“That is why God is angry. Perhaps, this is a wake up call for the government to repent or face further trial. This is maybe why the government can’t seem to do anything, because when God puts His hands on something, no one can escape.”
Zakariah was asked to comment on Ismail Sabri's statement on Saturday, when addressing Malaysian Trades Union Congress (MTUC) delegates, that foreigners who work in Malaysia are also benefiting from government subsidies that are meant for the locals, and what measures Putrajaya can take to fill its coffers to be able to maintain the subsidies.
The prime minister made the remarks when officiating the MTUC’s 42nd triennial delegates’ conference.
On June 26, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz had said the government is expected to cover up to RM80 billion in subsidies this year, the largest in the country’s history.
Unfair to revoke foreigners’ subsidies as they contribute hugely to nation’s economy
For Zakariah, revoking subsidies only for foreigners would be unfair, considering the group contributes hugely to Malaysia’s gross domestic product (GDP) and pays taxes.
This (providing subsidies for foreigners) is practiced anywhere in the world. As long as you live there, you will get it. So, I don’t see why we should be doing away with it.”
Instead of removing the subsidies for migrant workers, Zakaria suggested that this only be applied to foreign business players, whom he noted are enjoying various forms of incentives, such as tax holidays and lower gas and fuel prices.
PM’s statement borderline xenophobic, cheap shot
Human rights group North-South Initiative executive director Adrian Pereira said the remarks by Ismail Sabri had a tinge of xenophobia, describing it as a “cheap shot” against migrant workers who have played a big part in the economy.
While not objecting to suggestions for subsidies to only be given to those within the lower income bracket, Pereira said it was particularly bewildering for the prime minister to blame migrants when the government does not have any existing policies in place directing the subsidies to the targeted groups.
However, he does not believe the government has any intention of removing these subsidies for non-Malaysians, and said Ismail Sabri’s statement could merely be an attempt to rally local workers during the MTUC meeting.
The reality is migrants, in fact, may be the ones subsidising Malaysia by way of their high recruitment fees, payment of taxes and contributing to the GDP.
“The prime minister’s comment is just a cheap shot, or he might have been grossly misinformed by his advisers. You must question how he can make such a statement despite being surrounded by his aides and advisers. For his remark was borderline xenophobic.”
He said migrant workers here already have to pay more for healthcare services compared to Malaysians, and to subject them to further subsidy removals would be callous.
“Many of them already have to work for extended hours in brutal conditions and stay in hostels that are mostly in unlivable conditions. They are not provided with healthcare, and for Ismail Sabri to say what he said to influence public perception is uncalled for.” – The Vibes, July 6, 2022
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