IT will be disastrous to remove the fuel subsidies and implement a targeted subsidy now, according to MCA Youth spokesperson Ryan Ho.
In a statement on Monday, he said that the removal will result in many who need it may be left out while the “rich will still find a way to enjoy the targeted subsidies.”
“With the current economic climate and lack of an adequate public transportation system, such a removal will burden the rakyat tremendously and must not be done,” he said, adding that the lack of public transportation system was due to the cancellations by the previous Pakatan Harapan administration.
“The knock-on effect of such a removal would entail the overall increase in prices and inflation rate will surely increase. For example, food prices will surely increase due to logistics prices increasing for delivery of food. Businesses will not get targeted subsidies. At least for now, there are subsidies and in turn, the rakyat directly benefit from these,” Ho added.
“Please work on fixing the economy. Do not take the easy way out to replenish the government’s coffers by taking from the rakyat.”
Last week, finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that the government has enough money to maintain its current programmes to support the people.
He said programmes like fuel subsidies will be maintained even with the price hikes in oil prices and projected inflation is still within 2.3% to 3.3%.
However, he said the government is looking at targeted subsidies.
“The government has informed that the total subsidy this year will reach RM70 billion where the oil subsidy alone will reach RM30 billion.
“We have made estimates based on brand oil prices in the world,” he told reporters after the launch of Khazanah Nasional Bhd’s Sustainable Framework and Targets,” said the minister. — TMR / pic MUHD AMIN NAHARUL