PARLIAMENT | Giving advance notice on the government’s decision to implement subsidy rationalisation will result in traders taking advantage of the situation, said Economy Minister Rafizi Ramli.
He told the Dewan Rakyat today that the government has to balance the subsidy rationalisation impact to prevent traders from repeatedly hiking the prices of goods.
“If an advance announcement is made, the prices of goods can go up a few times.
“For that reason, the government's decision (to remove blanket subsidies) is best announced when all has been decided to avoid the risk of multiple surges in goods’ prices.
“Traders will use that as an excuse leading up to the date announced,” he said.
The Pandan MP was responding to Ronald Kiandee (PN–Beluran) who queried if a “surprise” announcement on fuel subsidy removal can help lessen the burden and impact on the country and the people.
Under wraps
Rafizi reiterated that the decision to implement targeted subsidies should only be kept within the government’s knowledge and the matter will be announced once Putrajaya has decided on it.
Previously, Rafizi said the government will be replicating the same strategy to not give the public advance notice on any decision to remove blanket subsidies for RON95 petrol as it did for diesel.
He said this when asked whether the move will be implemented this year with a pre-announced timetable.
“We will keep our cards close to our chest in the same way we surprised everyone with diesel (subsidy rationalisation programme).
“We did surprise everyone with diesel, and I think everyone is up for another surprise,” he told Bloomberg on June 28.
Several quarters have since questioned Rafizi’s statement, with some saying that it was likely to be ill-received and would invite backlash.
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