THE government has reversed a decision to cut subsidies for essential items to keep voters happy ahead of the general election, political observers said. 

They said this was because people were already fuming over the high cost of living.

International Islamic University of Malaysia’s Tunku Mohar Tunku Mohd Mokhtar said the U-turn on subsidies could be the result of the many protests over inflation.

He said Prime Minister Ismail Sabri Yaakob cannot afford to lose more support in the absence of legitimacy. 

“This shows that the government is weak and lacks control. It is definitely not good as bread-and-butter issues may anger the voters. Ismail and Barisan Nasional cannot afford to lose support at this critical time,” he said. 

Last month, the government announced it will remove the ceiling prices for chicken and eggs as well as subsidies for bottled cooking oil. This was set to take effect on July 1. 

However the government later backtracked the decision, saying that it would not to float the price of chicken, capping it at RM9.40 per kg. 

Putrajaya has also kept the subsidy for cooking oil sold in 1kg polybags.

At the same time, RM77 billion worth of subsidies, including for fuel, will remain. 

The government has also nixed Tenaga Nasional Bhd’s plan to raise electricity tariffs.

Tunku Mohar said if Ismail didn’t maintain the subsidies, the people would be angry.

“He will try to make it seem as though he’s resolving the issue. But the problem was created by him and his administration.”

He added that in view of worsening economic conditions, elections should be called soonest.

“The longer the delay, the worse the economy will become. 

“Unless the government can convincingly shift the blame to global conditions, the people will blame the government for its inability to address economic issues.”

Dysfunctional government

Tunku Mohar said aside from kitchen-table issues, developments in Umno would further pressure the PM to call a general election before party polls. 

“It is possible the election could be called before the tabling of Budget 2023.”

University of Tasmania’s political analyst James Chin agreed the people would be angry if subsidies were cut.

“The (government) can’t afford to make the voters angrier. Those who suggested floating the prices were crazy because you don’t give out bad news before a general election. 

“It was a bad move and now they are trying to correct it. In some ways, it shows the government is dysfunctional and not coordinating its policies.”

He said if the subsidies were removed, the people would blame not only BN but also Perikatan Nasional and PAS, who are in the ruling coalition.

“This move, the u-turn, is to placate the anger rather than try to win the support of the people.” 

Oh Ei Sun, senior fellow at the Singapore Institute of International Affairs, said the people’s negative feedback on the subsidies cut amid surging prices of essential items could be the reason for the walkback.

“The government perhaps needs to think through its policy more carefully before rolling them out so that  to avoid loss of consumer confidence,” said Oh.

Oh agreed an election should be held soonest as the inflationary problems would only get worse next year. – July 8, 2022.