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The recent concern raised by the government on the need to remove subsidies has received numerous mixed reactions. The government’s slogan ‘Towards 1Malaysia, People First, Performance’ now will be evaluated by all Malaysians especially the low-income and the middle- income earners during this crucial moment.

These groups are eagerly anticipating and hoping for the government not to do away with subsidies. In any country whether developed or developing, the needy and the poor will always be with us. Therefore, it is the responsibility of the government and the rich and powerful to safeguard the interest of the poor and the marginalised.

Just imagine what will be upon these groups if subsidies are removed? The essential goods price will surely soar, hike in transportation costs and soaring inflation. To add to their misery, the meagre income they earn is not able to match the increase. This will add enormous stress to the groups to face the unexpected changes. The concerned government which proclaims ‘people first’ must seriously look into the plight of these groups.

It was highlighted that the last year’s government subsidy amounted to RM74 billion. To add further, it was also highlighted that the subsidies for the poor was only RM1.7 billion of the RM74 billion. In other words only 2.3% of the total subsidy was spent for the poor.

Therefore, the government should re-look at how to increase the subsidy to uplift the poor. Furthermore there are also groups of people who are not classified as poor but struggling to survive to make ends meet. They are the middle-income group earners. They are now already suffering and when the subsidies are removed surely they will collapse. Does the government want this to happen?

What the government should focus now is not to remove subsidies but to maintain the subsidies and increase the subsidy amount for the poor and for the middle-income bracket earners to lead a peaceful and less stressful life. In order to increase the national coffers to bear the cost of subsidies, the government should set its house in order by considering the following concerns:

  • Plug out leakages, wastage and corrupt practices

  • Reduce spending in by-elections and general elections
  • Remove cronyism
  • Trace and penalise departments within the government that make exorbitant claims
  • Introduce salary and claims cut for ministers and high ranking government officers
  • Educate the workforce to exercise human capital development thus persuading the employers to upgrade their technology and improve productivity. A productive workforce increases the government’s revenue
  • Implement policies that will increase the minimum wages of the low end workers
  • The government can save millions or even billions if it spends wisely if effective steps are taken. It is unfair that the people are being asked to bear the burden of the government’s financial profligacy, corruption, mismanagement and cronyism due to the government’s own shortcomings that opened ways for ‘big players’ to reap enormous profits over the years.
  • It was highlighted by Awang Adek Hussein, the deputy finance minister that Malaysia will not go bankrupt in 2019 even if a subsidy totalling RM74 billion a year is continued. Than what is the fuss?

    What’s wrong if taxpayers’ money is spent on these groups? It does not matter that we are known for providing the highest subsidy compare to other countries; at least Malaysia will be highlighted as one country which truly cares for the people – then ‘People First’ will have a real meaning. Bravo, Malaysia you can do it – nothing is impossible – Malaysia boleh .


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