PUTRAJAYA is working on mechanisms that can help in the implementation of targeted subsidies so that those who are entitled will not be missed out, Prime Minister Ismail Sabri Yaakob said.

The Bera MP said implementing the targeted subsidies is not as easy as learning “ABC” as there are important details and factors that the government has to consider before pushing them through.

The government has to analyse the targeted subsidies in detail and use a proper mechanism so that it is given fairly. 

“Do we use a coupon or do we use MyKad to buy. This is what we are detailing. Hopefully, we will lay out the proposed methods in parliament that we intend to use (later),” he said.

As an example of the difficulty, Ismail said that although cooking oil sold in polybags was not allowed for commercial use, there were those from the low-income group who rely on it to earn a living.

“Cooking oil sold in polybags is for domestic use.

“The makcik selling pisang goreng cannot use the subsidised cooking oil sold in polybags for their business as it is not for commercial use.

“So, do the enforcement officers summon the makcik or confiscate their cooking oil?

“Later, we (the government) will be accused of being cruel to the poor who are working hard to earn a living,” Ismail said at the Dewan Rakyat today.

The prime minister said even enforcement officers would not have the heart to take action against this group of people.

Ismail was responding to opposition leader Anwar Ibrahim (Port Dickson-PH) who asked about the measures taken by the government to address the rising cost of living and price of goods.

Anwar urged the government to force palm oil companies earning high profits to allocate 10-15% of their products to be sold at a lower price.

Ismail also said finding a targeted mechanism to give petrol subsidies was “a very complicated issue” that needs thorough study.

He said every time there was a breakthrough, there would come a stumbling block. 

“We wanted to know who is entitled for the petrol subsidy.

“So, cars below the engine capacity of 2,000cc were suggested but then came so many questions.

“A ‘pak imam’ in my village uses an old Volvo which has an engine capacity of more than 2,000cc but the value of the car is just RM10,000. He can’t get a subsidy because of this condition. 

“Yet, there are cars below 2,000cc which cost hundreds of thousands, but because their engine capacity is smaller, they are entitled for the subsidy,” he said. – July 18, 2022.