KUALA LUMPUR: Issues related to targeted subsidies and cost of living were raised by members of Parliament on the third day of the debate on the Supply Bill 2024 in the Dewan Rakyat yesterday.
Datuk Seri Bung Moktar Radin (BN-Kinabatangan) during the debate session said that continuous subsidies from the government will not be able to solve the people’s economic problems.
“In foreign countries, subsidies are only given as a temporary measure while waiting for certain plans to be realised and when the plan is in place, there is no more subsidy.
“But we give subsidies of hundreds of billions every year non-stop. So if these subsidies continue, our economy will never contract,” he said.
In addition, he said the issue of rising cost of living is not only faced in Malaysia, but the whole world is affected as a result of various factors such as the economy and war.
“The main factor that led to the collapse of the global economy is the Covid-19 pandemic which hit the whole world including our country. Recovery is difficult and certain mechanisms are needed,” he said.
Tan Sri Muhyiddin Yassin (PN-Pagoh) in his debate proposed that the government examine and carry out a comprehensive study to identify the implications with regards to the implementation of targeted subsidies.
Muhyiddin urged the government to explain the mechanism that will be used in rationalising subsidies such as for petrol as well as the implementation method either through income group categories or using a new format, since the cost of living is felt by all citizens regardless of their income or class.
“For example, for the M40 households living in big cities like Kuala Lumpur and Penang, their living cost burden could be the same as the B40 households. What will happen if the government decides that this group will no longer be eligible for petrol subsidy,” he said.
In addition, he said the price of goods and services will also increase if transport and logistics industry operators no longer enjoy fuel subsidies.
Datuk Seri Dr Noraini Ahmad (BN-Parit Sulong) meanwhile, welcomed the government’s move to empower Micro, Small and Medium Enterprises (PMKS) with total loan guarantees reaching up to RM44 billion next year.
To ensure that the PMKS plan is effective, she proposed that the government focus on efforts to empower the halal industry in this country.
“Malaysia has a reputation as a major player in the halal food and beverage industry. With greater focus on the halal industry, we can continue to strengthen our position as a leading global halal food hub.
“This will not only help boost the national economy, but will also create job opportunities and funding for the PMKS industry,” she said.
In the meantime, Rushdan Rusmi (PN-Padang Besar) proposed that the government re-evaluate the grants given to entrepreneurs who have quit their business, in efforts to improve economic growth.
She said this is important considering the latest developments where a number of entrepreneurs have been forced out of business after not being able to bear their operating costs that have increased dramatically.
The Dewan Rakyat sitting continues tomorrow. — BERNAMA
