27th June 2022 - 2 min read
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has said that the total amount of subsidies provided in 2022 is expected to reach nearly RM80 billion. This is said to be “the highest amount of subsidies in history ever borne by any government”.
According to Tengku Datuk Seri Zafrul, the government has provided various consumption subsidies to ease inflationary pressures on the people. These include petrol, diesel, liquefied petroleum gas (LPG), cooking oil, flour, and electricity subsidies.
“When added with other assistance such as social welfare assistance, agricultural assistance, fishermen and so on, the total subsidies are expected to be close to RM80 billion for 2022, which is the largest amount of subsidies in history,” the finance minister added.
Despite the significant expense, Tengku Datuk Seri Zafrul said that the government went ahead with the implementation of policies that seek to control inflation, prevent excessive price increases, and help those in need through direct assistance. In turn, these policies have managed to keep the overall situation under control, especially when compared to other countries.
“A study on the holistic cessation of subsidies and the re-channelling of those savings to those in dire need is part of the government’s strategy to ensure the country’s fiscal sustainability in the medium and long term,” the finance minister further said, adding that this also reflects the government’s attitude towards protecting the B40 group.
Prior to this, Tengku Datuk Seri Zafrul had already said that the government is looking into ways to improve the electricity and petrol subsidy mechanisms so that they are more targeted to the financially vulnerable group. A similar comment was also made by the International Trade and Industry Minister, Datuk Seri Mohamed Azmin Ali, and Minister in the Prime Minister’s Department for Economic Affairs, Datuk Seri Mustapa Mohamed.
Finally, Tengku Datuk Seri Zafrul shared that his ministry is reviewing the country’s fiscal resources that need to be strengthened, in its effort to rebuild the country’s socio-economic resilience, especially for the B40 and M40 groups. “This government’s foresight also aims to reduce the indebtedness of our children and grandchildren in the future,” he further remarked.
(Source: Ministry of Finance)
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