Thursday, March 30, 2023

Targeted subsidy scheme will save govenment RM20 billion a year, says Muhyiddin

NewsTargeted subsidy scheme will save govenment RM20 billion a year, says Muhyiddin

The government will save RM20 billion a year by implementing the targeted subsidy scheme, says National Recovery Council (NRC) chairman Tan Sri Muhyiddin Yassin.

According to Bernama, Muhyiddin reveals that only 20% of the subsidy provided by the government was taken up by the B40 group at the moment, while the remaining were enjoyed by groups which did not deserve it.

“Almost 50% of government subsidies are used by people in the well-to-do category, those with big vehicles and so on,” he said.

“So, I think the basis for the government to make a decision (on targeted subsidy scheme) is very strong for a higher percentage to reach the target group (B40).”

Muhyiddin then said the savings from the targeted subsidy scheme can be channelled to the B40 group like farmers and fishermen who are badly affected by the rising cost of living instead.

However, he said the mechanism of implementing subsidies needs to be fine-tuned by the government to ensure subsidies reach the targeted group.

“We are discussing this proposal at the NRC level and it will be taken to the Cabinet at the right time,” he said. 

Source: The Borneo Post

Meanwhile, netizens were not impressed by his statement and has since took it online to criticise him.

“Why has it taken him this long to discover what economists have been saying for months? What’s he going to do about it is the question,” another netizen said.

Some netizens also question if the T20 and M40 groups should not enjoy these subsidies as these groups were those who are the ones paying the taxes.

“By the way, ministers and deputy ministers and top ranking officers all enjoy petrol allowances i.e. they don’t even have to pay a single sen because the rest of the tax paying citizens are paying their salaries, allowances, etc. Guess who really don’t deserve such perks? Over bloated cabinet and special advisors galore,” a netizen commented.

Another netizen then pointed out that if the government did pull the plug, prices of goods will rise again and the B40 group will be on the receiving end too.

“100% politicians enjoying government subsidies. Water, electric, telephone, transport, entertainment allowance, etc. Why didn’t you highlight that. Enjoy silently,” another netizen said.

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