Cronyism fuels inflation, says Pakatan

MP Dzulkefly Ahmad blames withdrawal of subsidies for rising prices.

PETALING JAYA: Pakatan Rakyat has challenged Prime Minister Najib Tun Razak to dismantle what it calls the culprit of inflation — crony capitalism.

“They know how to do it, but they don’t want to do it,” said Kuala Selangor MP Dzulkefly Ahmad, who heads Pakatan Rakyat’s budget committee.

He was responding to Najib’s latest statement on what the government was doing about the rising cost of living.

“We will look into ways to improve the agriculture supply chain to ensure minimal food loss during the production and supply process,” Najib said in a blog entry on 1malaysia.com.my.

“We will expand rakyat-focused initiatives such as the 1Malaysia Clinic, Kedai Rakyat 1Malaysia and most recently, the 1Malaysia Rakyat Menu.”

Dzulkefly said a major cause of rising prices was the government’s withdrawal of subsidies on essential items such as rice, gas and sugar.

“The subsidy withdrawals were piecemeal and selective,” he said.

“They did not withdraw subsidies for the independent power producers.”

He said Barisan Nasional cronies owned the power firms and the government did not dare lay its hands on them because they funded the BN election machinery.

Urban poor

DAP’s PJ Utara MP Tony Pua meanwhile asked Najib to explain how his administration’s efforts would benefit the urban poor.

“The effects of inflation is felt more in the urban areas than in the rural areas,” he said.

Cameron Highlands MP SK Devamany, who is a deputy minister in the Prime Minister’s Department, said he was confident that the government’s efforts against inflation would show results.

“We will have to increase production to increase supply in the market,” he said.

He said the government was also looking into the part played by cartels in the manipulation of prices.

He urged the public to report on “unscrupulous traders”, saying such feedback was crucial in checking inflation.