PRIME Minister Anwar Ibrahim said government subsidies for electricity, fuel, food, and more are expected to exceed RM81 billion this year.  

He said even though the figure was seen as high, it was not an option to reduce it given that people were burdened by the cost of living. 

Therefore, the government would implement rationalisation of subsidies to ensure the people were assisted while the country’s economy remained strong, he said. 

“Subsidy is an intervention by the government to ease the people’s burden. Subsidies for chicken and eggs amounted to RM3.8 billion but reducing the subsidies would not be an option as it would raise the cost of living, therefore a more resilient policy is needed, which is the rationalisation of subsidies. 

“With such a (high) amount of subsidies, no country can survive,” he said.

Anwar added that through rationalisation, the electricity subsidy for 1% of the wealthiest group had been cancelled. 

The prime minister said he recently asked Tabung Haji to review all subsidies for performing pilgrimages to ensure needier Muslims benefitted. 

“I requested this rationalisation from the Muslim community; the richest are not given subsidies to help other pilgrims; it was well received. There are 400 pilgrims who are eligible for the subsidy but turned it down to help others pay the cost of hajj,” he said.

Anwar said the government’s move to provide a subsidy of RM950 per tonne of imported white rice (BPI) to Sabah and Sarawak was important to help the poor there.  

“We will not allow the poor people of Sabah to be burdened by the soaring price of rice. There are places where the price of rice is RM45, RM41, RM39 (for a 10kg pack), so with this subsidy we can lower the price to RM31 and reduce burdens,” he said. 

He said for the interior of Sabah and Sarawak, a mechanism to ensure the price of rice did not increase due to transport costs would be discussed. 

On another matter, Anwar thanked the 12 elected representatives and leaders of Pakatan Harapan Sabah who withdrew their suit against the federal government over the implementation of the Malaysia Agreement 1963. 

“Since we took over the government, the chief minister is well aware that I have directed all efforts to implement what we promised. I assure you, close relations and cooperation with my friend Datuk Seri Hajiji will continue,” he said. – Bernama, October 4, 2023.