KUALA LUMPUR – Reducing subsidies to RM64 billion in Budget 2023 risks causing a sharp increase in inflation this year, said Pagoh MP Tan Sri Muhyiddin Yassin.
He said although there is positive momentum in the economic recovery process, the government needs to take proactive measures so that aid can be channelled quickly and effectively to the needy.
“Subsidies are financial assistance, not a form of government incentive.
“Has the government already assessed and identified the impact of this reduction?” he asked during the Supply Bill 2023 debate session in Parliament here today.
Muhyiddin stressed that government subsidies should benefit those who are really in need, while the affluent groups can contribute to the community’s welfare and the country’s economy.
“The subsidy given by the government to the people can obviously ease their burden, but it should be done in a targeted manner.
“The government’s commitment today is to take a progressive approach in the context of targeted subsidies, but I see that there is still no strong mechanism in terms of its implementation,” he added. – Bernama, March 6, 2023
