'Does it only affect the rich now,' Muhyiddin asks PM following price hikes

Former prime minister Muhyiddin Yassin has criticised Putrajaya's diesel rationalisation strategy after price hikes were detected across several business sectors.

The Perikatan Nasional chairperson hit out at Prime Minister Anwar Ibrahim for saying that the government subsidy rationalisation plan would only affect the ultra-rich.

"Not even a few days after the diesel subsidy was cancelled, we already saw vehicle towing services increasing their fees. Is it only the rich people who experience car breakdowns? How about the poor?

"Concrete producers have also increased their price. I am sure that the price of houses would follow suit. Is it only the rich who buy houses? Do you think the others do not buy houses?

"I also saw price hikes for vegetables like cucumber, chillies and mustard greens. Is it only the rich who consume vegetables?" he asked in a statement today.

The government began its subsidy rationalisation for diesel on Monday, which saw the fuel prices floated according to the current market rate.

To help vehicle owners and business operators dependent on diesel offset the differences, Putrajaya introduced several initiatives, including the Budi Madani and Subsidised Diesel Control System (SKDS).

Anwar had repeatedly stressed that the move was necessary to plug leakages of government subsidies to smuggling activities, which saw the country suffer billions in losses, besides ending the blanket subsidy practice that benefited the "ultra-rich".

Several sectors affected

Earlier today, Sinar Harian reported that the Bumiputera Contractors Association said construction item prices have increased by 30 percent after the government withdrew its blanket diesel subsidies.

Several other sectors also reportedly made similar moves, despite some having allegedly applied for fleet cards under SKDS.

Following this, 10 companies were issued notices for increasing prices of goods and services.

They comprised three each from the transport sector; the building materials sector as well as the food and beverage sector; and two companies from the machinery rental sector.

The Straits Times also reported complaints from durian sellers who were feeling the pinch of the diesel subsidy cut.

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