KUALA LUMPUR, Sept 26 — The government must take practical measures, including moves towards targeted diesel subsidies, despite criticism, said Prime Minister Datuk Seri Anwar Ibrahim.
He said the targeting of diesel subsidies has successfully increased investor confidence, stock market stability and strengthened the implementation of the Fiscal Responsibility Act 2023.
“This step has had a positive impact on the market, after we targeted the diesel subsidy, the price of diesel dropped by 40 sen. This gives confidence to investors and shows our commitment to stronger economic reforms,” he said at the Ilmuan Malaysia Madani Forum here yesterday.
Anwar explained that subsidies that are not properly targeted burden the country’s finances, especially when the subsidies are also enjoyed by the rich, who should be able to cover the higher costs.
“Rich people who can afford to pay RM100,000 for their child’s education at a private university but (seemingly) cannot afford to pay RM10,000 for a public university — that is something we need to change. It is the same at government hospitals, where (rich people) enjoy first-class facilities at minimal fees,” he said.
He also compared the situation with the failure of Britain’s National Health Service, where massive subsidies to all levels of society eventually became unsustainable.
“Malaysia has the lowest tax base in Asia, and this becomes a big challenge when the government has to make practical decisions in implementing reforms, including subsidies,” he added.
— Bernama
