Targeted subsidy scheme can save country RM20b annually - Muhyiddin

The government can save RM20 billion a year by implementing the targeted subsidy scheme, said National Recovery Council (NRC) chairperson Muhyiddin Yassin.

According to Muhyiddin, at the moment, only 20 percent of the subsidies provided by the government were taken up by the B40 group while the rest was enjoyed by groups which did not deserve it.

"Almost 50 percent 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 targeted subsidy scheme) is very strong for a higher percentage to reach the target group (B40)," he said after a meeting between the NRC and Terengganu fisherfolk at the Cendering LKIM Port in Kuala Terengganu yesterday.

Also present were Agriculture and Food Industries Minister Ronald Kiandee and state Agriculture, Food Industries, Plantations, Commodities and Rural Development Committee chairperson Azman Ibrahim.

At the ceremony, Muhyiddin also presented cheques totalling RM20 million as assistance for fishermen from the Agriculture and Food Industries Ministry to the Terengganu Fisherfolk Association (Penentu).

The assistance included Projek Khas Perumahan Nelayan aid totalling RM14.2 million, cost of living allowance (RM4.2 million) and Penentu special fund (RM1.6 million).

Muhyiddin said the saving from the targeted subsidy scheme could be channelled to the B40 group like farmers and fisherfolk 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 NRC level, and it will be taken to the cabinet at the right time,” he said.

- Bernama