Targeted subsidies will save RM20 billion, says Muhyiddin

 

National Recovery Council chairman Muhyiddin Yassin speaking to fishermen in Terengganu today. (Bernama pic)

KUALA TERENGGANU: The government can save RM20 billion a year by implementing the targeted subsidy scheme, said national recovery council chairman Muhyiddin Yassin today.

He said only 20% of the subsidies provided by the government was taken up by those in the B40 (lowest income-group) while the rest was enjoyed by groups which did not deserve it.

“Almost 50% of government subsidies are used by people in the well-to-do category, those with big vehicles and so on.

“So, I think the basis for the government to make a decision (on a targeted subsidy scheme) is very strong for a higher percentage to reach the target group (B40),” he said here after a meeting with Terengganu fishermen.

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Muhyiddin also presented cheques for a total of RM20 million in aid for fishermen from the agriculture ministry to the Terengganu fishermen’s association.

Muhyiddin said the money saved from the targeted subsidy scheme could be channelled to people in the B40 group, such as farmers and fishermen who are badly affected by the rising cost of living.

However, the mechanism for implementing the scheme needs to be fine-tuned by the government to ensure subsidies reach the targeted group, he added.

“We are discussing this proposal at the MPN level and it will be taken to the Cabinet at the right time,” he said. - FMT