Govt to cancel direct subsidies for struggling sectors

 

Economy minister Rafizi Ramli says subsidies do not help much in addressing challenges faced by companies as it only serves as a temporary solution.

KUALA LUMPUR: Industries struggling with economic challenges like a hike in prices of raw materials will soon stop receiving direct subsidies from the government, says economy minister Rafizi Ramli.

“They will receive other forms of assistance from the government in order to improve the industries’ structure and operations,” he told reporters after an event here.

Rafizi added that direct subsidies did not help much in addressing the challenges faced by companies as it only served as a temporary solution.

“Our approach now is to move away from merely giving financial injections, which changes nothing. We are more inclined to cooperate with the industries so that the form of assistance is able to strengthen their competitiveness.

“For instance, for industries that depend on gas, rather than subsidising gas for them, we would encourage them to switch their reliance from this source of energy to biomass.”

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