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Malaysia’s Anwar vows “to not burden residents” with cuts in subsidies to large businesses

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adminMarch 18, 2024No comment
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Malaysia Prime Minister, we’ll start reducing electricity subsidies for big businesses and multinational corporations Anwar Ibrahim he said, while the federal government tries to direct spending to those in need.

Subsidies shouldn’t be given to multinational firms and corporations engaged in exports, he said at a news conference after Wednesday’s cabinet meeting. He added that this can not affect small and medium-sized enterprises and entities engaged in agriculture and food production.

“The decision is clear: we will not charge citizens,” Anwar said. An increase for businesses could be “very gradual and reasonable in order to not disrupt their operations,” he said, adding that energy subsidies for next 12 months are estimated to cost the federal government 30 billion ringgit ($6.8 billion).

A farmer works in a field in Bali. Anwar said the subsidy cuts wouldn’t affect businesses engaged in agriculture and food production. Photo: AP
Anwar maintained it reducing the burden of price increases on low-income groups is a top priority for his administration. Two weeks ago, he asked relevant ministries and agencies to develop measures to handle the rising cost of living and take a look at ways to redistribute the blanket subsidies that currently profit the rich and businesses.
Malaysia, which has the biggest budget deficit in Southeast Asia Philippines, experienced a budget strain attributable to the prices of maintaining basic necessities at below-market prices. Government subsidies are expected to achieve a record 80 billion ringgit ($18 billion) this 12 months, with fuel and cooking gas concessions alone estimated to make up about half of that quantity.
While Malaysia’s economy quickly rebounded pandemicThe uneven economic recovery has left many individuals struggling to afford basic food amid soaring inflation.

Malaysia’s Anwar says subsidies have to be targeted at low-income earners

On Tuesday, Anwar said concessions ought to be given to those most in need, citing the instance of state-owned power producer Tenaga Nasional Bhd., whose a million corporate customers profit from greater than 50 percent electricity subsidies. He also said the federal government would consider consumer-level intervention methods to handle supply shortfalls.

Anwar, whose unity government is backed by at the very least 4 political groups, also expressed confidence that he would survive a vote of confidence next week. He promised to indicate his alliance has a majority through a vote when parliament convenes for 2 days starting December 19.
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