Deputy Finance Minister II Steven Sim has revealed that the government is considering using the MySejahtera mobile app as an official channel for the distribution targeted subsidies. This comes as a special panel established under the Ministry of Finance (MOF) continues to examine various implementation mechanisms to find the most appropriate means that can avoid financial leakage, yet ensure that no eligible recipients are left out.

“The mechanisms for targeted subsidy implementation are being studied in detail, including using apps like MySejahtera and such. I agree there is an issue of leakage in terms of our subsidies, which is why the government is not only making plans to deal with the issue, but also taking the first step to resolve it,” said Sim.

The deputy minister also stressed that it is not easy for the government to implement targeted subsidies, and that it must be done correctly. He acknowledged that there is bound to be dissatisfaction among those who are not entitled to the subsidies, including foreigners, but it is a necessary step.  

The government has highlighted its intention to implement targeted subsidies for a while now, particularly since former Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz noted in mid-2022 that the total amount of subsidies provided is expected to reach RM80 billion. Following that, the MOF had been on the search for the most appropriate mechanism to roll out targeted subsidies.

Most recently, Prime Minister Datuk Seri Anwar Ibrahim – who is also the Finance Minister – said that he will reveal the details for the implementation of targeted subsidies during the tabling of Budget 2024 – which is set to happen on 13 October 2023. Economic Affairs Minister Rafizi Ramli also shared previously that the government will adopt a new approach in providing targeted subsidies, relying on net disposable household income instead of the current income-based approach.

(Source: Utusan Malaysia)

• TAGS:
• Blanket Subsidies
• Government Subsidies
• MySejahtera
• MySejahtera App
• Steven Sim Chee Keong
• Targeted Subsidies
• Targeted Subsidy Mechanism