PUTRAJAYA must come up with a strategic plan to address the energy and food security issues in the country, Warisan president Mohd Shafie Apdal said today.

In a statement, Shafie said while short-term assistance was needed, it had to be targeted.

He said it was unwise and wasteful to spend RM77.3 billion on “subsidies”, with the bulk allocated for energy subsidies that benefit the higher-income group.

“The move was not sustainable and showed unsound management of the country’s economy.

“The subsidies for this year are higher than the entire national development expenditure of RM76.6 billion.

“Where do we get the money for this?” he asked.

According to Shafie, last month alone, Putrajaya had to pay RM7.5 billion for the 1MDB debt, and another RM7.5 billion to be paid at the end of the year.

“Together with the subsidies, the rakyat will have to fork out RM92 billion – money down the drain.

“In comparison we are only spending 10% of that on development expenditures for health and education, which are beneficial in the longer run.

“Where is the country heading? We have a bloated cabinet, economic council, economic recovery council and yet the government cannot even handle the price of chicken.

“Economic problems in this country are getting worse and to spend money on subsidies, which is more than the development expenditure, will not improve the situation,” he stressed.

Earlier today, Pakatan Harapan’s (PH) cost of living committee said the government must maintain the current ceiling prices for chicken and eggs, as well as subsidies for bottled cooking oil.

“We call for the ceiling prices to remain, and additional subsidies for chicken farmers and entrepreneurs, to ensure constant supply of these items,” the committee said in a statement today.

Days after Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi said that the ceiling price for chicken will be removed come July 1, Prime Minister Ismail Sabri Yaakob said the government would not float the prices of chicken or increase the electricity and water tariffs in the peninsula.

Ceiling prices for bottled cooking oil, however, will still be removed from July 1, as Nanta had announced.

This will apply to cooking oil sold in 2kg, 3kg and 5kg bottles, which currently have maximum retail prices capped at RM12.70, RM18.70 and RM29.70 respectively.

Only the government subsidy for palm oil cooking oil sold in 1kg poly bag packets at RM2.50 would remain.

Apart from that, the government will also continue to subsidise fuel prices, especially RON95 and diesel.

Shafie, who is former Sabah chief minister, also called for a review of the salaries and allowances for ministers and the top management of government-linked companies (GLCs).

“I would suggest not just a 25% cut in their salaries and allowances, but for the number of ministers and deputy ministers to be cut by half,” he said.

The same call was made by PH, which demanded that other wasteful spending on “mega projects that do not benefit the people” should be halted.

These included the Mass Rapid Transit 3, East Coast Rail Link and the TRX Exchange, the PH committee said. – June 27, 2022.