PRIME Minister Datuk Seri Anwar Ibrahim assured an increase in Rahmah cash aid if subsidy rationalisation affects the people, especially the poor.
Anwar, who is also finance minister, said the floating of chicken prices had proven effective since it was implemented on November 1, and he was convinced that the rationalisation of subsidies would not affect 90% of Malaysians.
The PKR president also said the retraction of subsidies will involve only 10% of the “super rich” and the 3.5 million foreign nationals who have enjoyed government subsidies so far.
“The use of subsidies in 2022 totals RM77.3 billion, and covers petrol, diesel, liquified natural gas, cooking oil, flour and electricity, making it the highest total of subsidies in history.
“For 2023, subsidies will exceed RM81 billion if not reduced immediately. A targeted subsidy approach will be taken, but the government will have a more effective safety net for the poor,” he said.
Anwar said this in his keynote address at PKR’s annual congress, which was attended by 2,734 party delegates and 1,500 observers, along with unity government leaders and foreign diplomatic representatives at the Putrajaya International Convention Centre last night.
No government, Anwar said, could afford to continue providing subsidies, although he was also of the view that the retraction of subsidies should not burden the people.
The unity government’s approach in steering the country was to ensure Malaysia could become a strong, great and respected country in the region and known globally for its ability to manage its economy well, he said.
Such efforts were elaborated on in the Madani economic framework, the New Industrial Master Plan 2030, digital transformation and artificial intelligence and in both Madani budgets and the 12th Malaysia Plan Mid-Term Review.
“We have placed policies to drive the (national) economy but it is directed towards key issues affecting the people, that’s why the problems we want to solve first are dilapidated schools and clinics, and to eradicate hardcore poverty,” he said.
In addition, Anwar said focus will be given to people’s housing and the civil service, as well as empowering villages, rural areas, long houses and urban housing with allocations of RM50,000 to RM100,000.
“We are committed to changing the economic development approach so as not to sideline the people’s interests at lower levels. We have an agenda, not insulting slogans, that’s why we’re more confident,” he said.
He also shared that investors were gaining confidence in the unity government, and more companies from foreign countries like China and Germany investing in the country, on top of new investments from the 2023 Asia Pacific Economic Cooperation Economic Leaders meeting he attended recently.
“Until September, we have managed to attract and approve investments worth RM132.6 billion. All these took place in uncertain economic conditions, the country saddled with a RM1.5 trillion debt and a ballooning 5.6% deficit,” he added. – Bernama, November 26, 2023.
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