The recent tariff and rate hikes and slashing of subsidies may be unpopular, but these are good for the economy and therefore "good for the people", the government says.

“To keep Malaysia’s economy strong, we need to keep our public spending in check. That means raising some rates and cutting some subsidies.

"Some measures may not be popular now, but over the medium-term what is good for the economy is also good for the people," a federal government spokesperson said in a statement.

The statement was issued by the prime minister's press secretary Tengku Sariffuddin Tengku Ahmad today.

It said while in the short-term the price increases and subsidy cuts would be "unpopular with some", these were "absolutely necessary to maintain investor confidence in Malaysia".

Additionally, these unpopular measures would help continue Malaysia's "strong growth in jobs and income over the last four years".

Prime Minister Najib Razak's second term in office has seen hike after hike since petrol prices were raised twice this year, and subsequently, the sugar subsidy was abolished and he also announced a goods and services tax of six percent Budget 2014, to be implemented in 2015.

protest against fuel price hike ipoh dap 010211 That has since opened a floodgate to various rate hikes starting 2014, from the astronomical assessment rates of as high as 200 percent for Kuala Lumpur property owners, a hike in electricity tariffs and this week, the announcement of hikes in highway tolls .

Plans to raise public transport rates are also on the table for the middle of next year, prompting the opposition to name it 'Price Hike Year 2014'.

The government spokesperson cited the BR1M and 1Malaysia initiatives as short-term measures to provide "extra help to those who need it most".

“In the short-term, the government is providing extra help to those who need it most. From Monday, some 7.9 million recipients in households earning under RM4,000 a month can apply for new BR1M payments.

"We are opening new 1Malaysia shops, to help with the cost of daily goods, and new 1Malaysia Klinik to provide affordable healthcare.”

'52 percent back hikes'

Meanwhile, commenting on the latest slide in Najib's approval rating in a Merdeka Center poll for December released yesterday, the spokesperson said the results nevertheless implied that the price hikes received popular backing.

"International institutions, investors and agencies have backed this responsible approach, and 52 percent of respondents to the recent poll approve of the prime minister’s performance.

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"Unlike the opposition, which promises everything to everyone, the government is taking the tough decisions needed to protect Malaysia’s economy."

According to the Mercdeka Center survey, Najib's approval rating this month is the lowest since September 2009 (which was 59 percent) and is close to the 45 percent he chalked in May 2009, a month after taking over as prime minister.

Najib's ratings on his tenure have been plagued by long downtrends after breaking the 70 percent mark twice, in 2010 and 2011, while the dissatisfaction level has seen consistent growth from the initial 16 percent to 40 percent.

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