Subsidy rationalisation long ways off

Deputy Finance Minister says mechanism is still under study.

DENGKIL: The mechanism for the implementation of the subsidy rationalisation is still under study and is expected to be announced next year after getting the Cabinet’s approval, said Deputy Finance Minister Chua Tee Yong.

He said the government was still undertaking studies to determine the agency or company that would assist it in the implementation of the subsidy rationalisation, the system that would be used and the list of groups that are eligible to receive the subsidy.

“In terms of implementation (subsidy rationalisation) according to income, it is still at the study stage where we also have close communications with non-governmental organisations,” he told the media after launching the Treasury Family Day at Paya Indah Wetlands here today.

“This also represent an initiative that is not only under the Finance Ministry but needs cooperation from the Ministry of Domestic Trade, Cooperatives and Consumerism and Economic Planning Unit,” he said.

Chua was commenting on a statement by the Deputy President of the Federation of Malaysian Consumers Associations (Fomca), Mohd Yusof Abdul Rahman, who requested the government to provide a clear definition on those referred to as “high-income earners” before implementing new regulations on subsidised RON95 petrol.

Hence, Chua hoped the public would not be confused with the implementation of the subsidy rationalisation until its announcement was made and it would definitely consider the benefits to the rakyat and country for the long term.

He further explained that the implmentation of the subsidy rationalisation was important as in the initial stage of the subsidy, the total allocation was only RM2 billion but as of last year, it had reached RM43 billion.

He said the government would examine all aspects before announcing the subsidy rationalisation mechanism to ensure that the system is devoid of any form of bureaucracy which would raise issues during its implementation.

- BERNAMA