PUTRAJAYA – Government subsidies should be more targeted in the long run as more than 50% of fuel subsidies are enjoyed by the T20 income group, said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
He said a study by various parties, including Bank Negara Malaysia, revealed that for every RM1 of petrol filled, 53 sen goes to the T20 group.
He said Malaysia needs to fork out subsidies worth RM71 billion in 2022, of which fuel subsidies alone accounted for RM30 billion following the increase in world crude oil prices and of the amount, RM15 billion went to the higher-income group.
“We have to be more targeted in the long run. What is important is that we’ve agreed to take this approach if the people are fine with it.
“The right action is the best way to implement it so that nobody is left out. My principle is that we must be more targeted (with) subsidies and I hope the people agree that we need to help those who really need it,” he said at an Aidilfitri open house hosted by the Putrajaya Media Club, here today.
Tengku Zafrul also said the Finance Ministry will begin the 2023 Pre-Budget Tour soon to gather ideas, opinions and suggestions from all stakeholders.
He said the official Budget 2023 portal had also been activated since June 3 to invite private organisations to contribute ideas on issues and proposals for consideration in the budget.
As stated in the 2023 Pre-Budget Statement, the ministry wants to focus on the country’s economic recovery to ensure sustainable growth next year.
“We want to emphasise that in terms of transformation of the economy, we need to create inclusiveness at all levels of society and sectors,” he said. – Bernama, June 8, 2022
