We posted about possible subsidy cuts on sugar 3 weeks back, and now it seems with the coming Budget 2014, flour subsidies may be cut too meaning more pressure on pockets.
Domestic Trade and Consumer Affairs Minister, Hasan Malek explains that the subsidy cut is part of the government's subsidy rationalisation plan. The reason behind the cuts, he says, is to enhance economic growth and development of the country, as well as to take care of the people’s welfare even if it means making unpopular decisions.
“The government's intention is to strengthen the economy. We do not want to be like the United States, where its economy has been shut down," he said, after opening a briefing on current issues and consumerism campaign with hawkers and traders in Ipoh, Perak.
He stressed that the subsidy cuts will not affect supply as it will still be enough to meet the demand of consumers.
The government may have assured consumers that the sugar and flour prices would not increase in the past, but it seems the Malaysian government has decided to rethink its Budget 2014 and strategies.
With only 2 to 3 weeks left to go before Budget 2014 is announced, who knows what other ‘surprises’ are in store for consumers.
*Picture from Realfood.Tesco.com