It is the government's continuing wastage of public money that is forcing it to cut subsidies, and forcing the people to bear rising living costs, said Ikatan Muslimin Malaysia (Isma).

NONE The group's unit for policy studies head Badhrulhisham Abd Aziz noted how the government has cut various subsidies on basic necessities such as petrol, sugar and fuel for power plants in order to strengthen its finances.

"Isma is of the view that the government is forced to reduce subsidies to save money to strengthen the country's fiscal situation.

"At the same time, the Auditor-General's Report (2012) has cited many cases of leakages and wastage of public funds.

"Is it because of such leakages and wastage that our fiscal capacity has weakened, and therefore our subsidies have to be cut to overcome the situation?

"This is what we are questioning, and it seems to be true," said Badhrulhisham in a statement today.

He was responding to the 15 percent hike in electricity tariffs announced on Monday.

One hike after another

The electricity hike comes on the heels of the removal of the sugar subsidy in October and a cut in petrol subsidies last September.

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Apart from this, Prime Minister Najib Abdul Razak's Budget 2014 also included a 6 percent goods and services tax (GST) starting April 2015.

To top it off, Kuala Lumpur City Hall (DBKL) is raising the assessment rates next year to as much as 200 percent in some areas, or more.

Meanwhile critics say cases cited in the AG's Report amount to at least RM6.5 billion in wasted public funds.

Badhrulhisham said the subsidy cuts will eventually lead to higher cost of goods and services that the people have to bear.

"Isma suggests the government delay the hike in electricity tariff and carry out a detailed investigation on the real effects of this hike on the cost of living of the people, so that it does not become a burden," he added.