Subsidies will continue to benefit majority of people, says Anwar

 

Prime Minister Anwar Ibrahim has announced that the government plans to implement the targeted subsidy measure for RON95 petrol by mid-2025.

PETALING JAYA: 

The government will ensure that subsidies continue to benefit the majority of the people, says Prime Minister Anwar Ibrahim.

Anwar said each targeted subsidy initiative aims to correct the imbalances of blanket subsidy practices that benefit the ultra-rich group and foreign nationals, Bernama reported him as saying when tabling the 2025 budget.

“The undeniable fact is that foreign nationals and the top 15% group of ultra-rich consumers enjoy 40% of the RM8 billion RON95 petrol subsidy.

This RM8 billion would be better utilised for improving education, healthcare, and public transport facilities,

 he said.

Anwar said the targeted electricity subsidy introduced on Jan 1 this year left 85% (or seven million domestic consumers in the peninsula) unaffected.

The government will continue to bear the subsidy for 85% of the people estimated at RM12 billion,

 he said.

Anwar said the government plans to implement the targeted subsidy measure for RON95 petrol by mid-2025.

“Subsidies, in principle, like donations, should not be enjoyed by the ultra-rich group. For too long, we have been providing blanket subsidies for fuel, electricity, water, education and healthcare services, and even essential items like chicken.

Such an approach is certainly unreasonable when the country is burdened with debt and has a low revenue base,

 he said.

On education subsidies, Anwar said if they are gradually reduced for those in the top 15% income group, the funds gained could be used to improve the infrastructure of fully residential schools and public institutions of higher learning, benefitting all students.

Anwar noted that the original goal of establishing residential schools was to help outstanding students from disadvantaged and rural backgrounds access the best education, but based on recent figures, 30% of the students come from high-income families.

“Subsidies for each fully residential school student reach RM15,000 per year; similarly, at the higher education level.

For example, the average tuition fee paid by undergraduate pharmacy students is RM3,000, while the total cost of education amounts to RM30,000, and these subsidies are given without considering the family’s income,

 he said.

According to Anwar, the targeted subsidy initiative will also involve public health, as high-income groups should contribute to better healthcare services in government hospitals. - FMT