Deputy Finance Minister II Steven Sim has said that the government’s decision to implement targeted subsidies for certain goods or services is the best approach to ensure that the intended groups receive the help that they need. On top of that, it will also help to avoid leakages and loss, especially as non-citizens can soon be prevented from taking advantage of such subsidies.

“We want to ensure that the funds used for subsidies are used in the right places…Whether it’s the B40 or M40 group, if they need it, we will implement targeted subsidies. The savings from these subsidies will be reinvested, for example, through the Rahmah Cash Aid (STR), for more schools and hospitals, to upgrade health clinics, and to provide assistance to small and medium enterprises (SMEs),” said the deputy minister.

Sim further shared that the implementation of targeted subsidies will be carried out in phases, and will not burden 90% of Malaysians. To ensure this, studies will be conducted throughout the implementation period to assess the ongoing impact on the majority of people.

Prior to this, Prime Minister Datuk Seri Anwar – who is also the Finance Minister – had said that the government is considering using cash transfers to provide specific subsidies to the people. Meanwhile, Economy Minister Rafizi Ramli had previously commented that the government aims to fully implement the targeted subsidy programme by 2024, with the Central Database Hub (PADU) – which is integral to the programme – expected to undergo trials from November before opening to the public in early 2024 for the verification of personal information.

(Source: Malay Mail)

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