Analysts are recommending that the government review subsidies for cooking oil and LPG following its targeted subsidy efforts for diesel, despite allegations of misuse. good in the industry and complaints that these subsidies do not benefit the poor.
They said the success of the targeted diesel subsidy will set the tone for the government’s decision to restructure its support for more prudent investment, thereby benefiting the target groups. in the long run. Ahmed Razman Abdul Latiff, director of business development at Putra Business School, welcomed the government’s introduction of targeted subsidies, saying many countries no longer use general subsidies due to their inefficiency and exposure to leaks.
“Thanks to general grants, a large part of public spending is allocated to those who do not deserve it, such as foreign nationals and T20 citizens. They also cause leakage, waste and import. Public spending must be reduced to ensure that the country’s finances are sufficient for future investments,” he told FMT.
Razman also said that if the implementation of the targeted diesel subsidy is successful, the government should review its subsidy for cooking oil, which can now be bought in the open market at RM2.50 per packet. “If he doesn’t do this, the government will continue to suffer,” he said.
Economist Aimi Zulhazmi Rashid said that apart from diesel and cooking oil, the government should speed up the introduction of targeted subsidies for LPG. “Malaysian income is now distributed equally to all residents of the country, from tourists and foreign workers, regardless of their family income or their wealth.
He said, “This is because the level of preventive aid increases as the population of the country increases, forcing the government to invest more every year and charging the country’s budget.” Last week, Prime Minister Anwar Ibrahim announced that Ministers had approved a targeted fuel subsidy, which will start with diesel in the peninsula – a move expected to save RM4 billion a year for the government’s demographic change and use help balance public finances.
Anwar, who is also the Finance Minister, also announced incentives to curb the high cost of goods and services, by offering diesel fuel subsidies to customers who use diesel commercial vehicles.
The subsidy will cover 10 types of public transport and 23 types of vehicles under the diesel subsidy regime.
