PUTRAJAYA – The government will consider implementing a more targeted subsidy mechanism so that only those who are truly in need of assistance will benefit from it, said Deputy Finance Minister Datuk Mohd Shahar Abdullah.
Moving forward, he said the government remains committed to ensuring the people’s wellbeing, including protecting households from the full impact of rising commodity and food prices worldwide.
“Following the government’s move to continue and enhance the subsidies, the expenditure for aid and subsidies is estimated to increase to RM77.7 billion compared to Budget 2022’s allocation of RM31 billion,” he said in a speech at the Budget 2023 Consultation event at the Finance Ministry here, today.
According to him, Malaysia’s inflation rate would have reached 11.4% if it was not for the government’s move to subsidise essential items, adding that the inflation rate remains within control due to the implementation of price control measures and the granting of subsidies.
“The national inflation rate in the first six months of 2022 stood at 2.5%, which is much lower than inflation in other countries, especially when compared to developed countries such as the United States and the United Kingdom which reached 9%, as well as regional countries such as Thailand, the Philippines and Singapore which reached over 6%,” he said.
Meanwhile, in ensuring continued economic growth momentum, the government will focus on reform initiatives to improve the people’s wellbeing in Budget 2023, which will be presented in October.
This includes increasing incomes and social protection, business competitiveness and related value chains and strengthening the country’s resilience against future shocks.
Shahar said Budget 2023 is drafted based on five main aspects, including strengthening economic recovery momentum in terms of gross domestic product growth, employment and the people’s incomes as well as business continuity.
It will also focus on increasing the country’s competitiveness in the new post-Covid-19 normal by focusing on increasing productivity through the application of technology, automation and digitisation and encouraging new innovations for sustainable economic growth; and strengthening economic resilience, a sustainable fiscal position and providing subsidies and assistance in a more targeted manner.
Additionally, it also emphasises protecting the people’s well-being through social protection programmes that focus continuously on healthcare services, quality education, public safety and a more comfortable living environment. – Bernama, August 23, 2022
