Develop measures to implement targeted subsidies – PM tells agencies

 

Prime Minister Anwar Ibrahim today instructed all government departments to formulate and develop suitable measures to implement targeted subsidies by taking into consideration the interests of the consumers and industries.

In a statement issued after chairing the National Action Council on Cost of Living (NACCOL) meeting today, Anwar said Malaysia must channel bulk subsidies, which also benefit the super-rich and conglomerates, towards supporting the B40, M40 and small business owners who are particularly affected by the rising cost of living.

“For example, Tenaga Nasional Bhd (TNB) has almost 10 million consumers but 10 percent or one million of the consumers are the conglomerates who enjoy more than 50 percent in electricity subsidy.

“So, government departments must formulate and develop suitable measures to implement targeted subsidies by taking into consideration the interests of the consumers and industries – to ensure smooth and effective implementation of the measures,” he said.

The NACCOL meeting at Perdana Putra was also attended by the two deputy prime ministers, Ahmad Zahid Hamidi and Fadillah Yusof.

Also present was Chief Secretary to the Government Mohd Zuki Ali and other relevant ministers.

On Nov 27, Anwar instructed NACCOL to analyse and go through the subsidy implications within two weeks.

He said that the subsidies borne by the government including the electricity bill subsidy, are currently being enjoyed by all groups even though they are actually meant for the poor.

Meanwhile, Anwar, who is also Finance Minister, said three reports were tabled at today’s meeting which covered the common issues, objections and strategies by the Domestic Trade and Cost of Living Ministry; Natural Resources, Environment and Climate Change Ministry; as well as the Plantation and Commodities Ministry.

“The reports were aimed at getting a preview from the relevant stakeholders, especially the industry players and non-governmental organisations representing the consumers,” he said.

Anwar said the government is also consistent in developing and supporting sustainable industrial development where the country's livestock sector has long reached a sustainable level to meet local demand and is also able to export its products.

“The government plans to facilitate the industry’s capability to export their products and ensure that it is also capable of producing sufficient supply for the people, and this includes greater and targeted assistance, especially to local entrepreneurs,” he said.

At present, Anwar said the supply issue is the government's main focus because a lack of supply will have a negative impact, and therefore, the government will consider looking into the government's intervention methods at the consumer level.

“The NACCOL meeting has discussed this matter at length and some measures have been recommended.

“These matters will be tabled at the cabinet for consideration tomorrow,” he said.

- Bernama