Putrajaya must explain mechanism for targeted subsidies, says Ismail Sabri


Bera MP Ismail Sabri Yaakob says implementing targeted subsidies without the right mechanism will add to the people’s financial burdens. – The Malaysian Insight file pic, October 24, 2023.

BERA MP Ismail Sabri Yaakob said today a detailed mechanism was needed to implement targeted subsidies.

“I would like to ask what mechanism the government will use to implement targeted subsidies next year because it was not touched upon in the tabling of Budget 2024,” he said during the debate on the Supply Bill 2024 in the Dewan Rakyat here today.

He said the government developed the Padu integrated database to be used in January to ensure subsidies were given to deserving groups only.

“The question is, is this system ready? Has this system been tested for its effectiveness? Because we only have two months before it is launched.

“The next question is who is eligible to be given a targeted subsidy? For example, if a targeted petrol subsidy is implemented, how will the government determine the characteristics of those who are eligible? Is it through the amount of monthly income or vehicle engine capacity?” asked Ismail Sabri.

He said implementing targeted subsidies without the right mechanism would add to the people’s burden and hike living costs.

Ismail Sabri said chicken prices have risen even without a float.

“The price of chicken has not been floated yet but two days ago it was reported in a Malaysian daily that the price of chicken reached RM11 per kg. What will happen next year if the price of chicken is floated?

“It will definitely become more uncontrollable because 70% of total production costs is imported food, in addition to logistics, labour, utilities and medicine. The cost of chicken feed is expected to continue rising due to the fall of the ringgit,” he said. – Bernama, October 24, 2023.



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