Wanita Umno urges govt to reconsider subsidy rationalisation

• UPDATED 12.50PM | Added Zahid’s response to Noraini’s comments.

UMNO AGM | Wanita Umno chief Noraini Ahmad has urged the government to reconsider its subsidy rationalisation exercise.

The deputy women, family and community development minister called instead for a more holistic approach to break the cycle of poverty for Malaysians.

“We understand the need to optimise public expenditure but we also need to understand that every ringgit that is reduced from subsidies is a great blow, a heavy blow, to the people who are already burdened. 

“We propose a comprehensive review, a more prudent and phased approach in subsidy rationalisation,” she said in her opening speech at the Wanita Umno assembly today.

She added that the M40 group must not be neglected as it does not qualify for subsidies despite being too poor to live comfortably.

The government has withdrawn diesel subsidies at the pump on June 10 in a bid to rationalise expenditure and stem smuggling activities.

Following this, the price of diesel would be floated according to the market rate and updated weekly like RON97.

Eligible private vehicle owners can apply for a monthly RM200 assistance, while commercial vehicle owners can apply for fleet cards under the Subsidised Diesel Control System.

Finance Minister II Amir Hamzah Azizan said this will save the government some RM4 billion for use in other programmes.

However, some local industry groups such as tour bus operators and tow truck services had pleaded with the government to reconsider after finding themselves left out of the new subsidy schemes.

‘Premium salary’

In response to Noraini’s comments, Umno president Ahmad Zahid Hamidi said the next step is to ensure that the skilled workforce is paid a “premium salary”.

"I think the cost of living and the salary wage to be given to our workforce must be in tandem with the development of our economy as well as the salary that has been adjusted for the public service,” he told a press conference.

He said unreasonable increases in the cost of goods and inflation must be curbed.

At the same time, the government needs to find a balance between the demand and supply in the workforce, and between goods and services, he added.

Last week, Prime Minister Anwar Ibrahim announced that the government agreed to increase the salaries of its civil servants between seven and 15 percent beginning Dec 1.

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