KUALA LUMPUR, Oct 18 — MPs raised issues related to targeted subsidies and cost of living on the third day of the debate on the Supply Bill 2024 in the Dewan Rakyat today.
Kinabatangan MP Datuk Seri Bung Moktar Radin said continuous government subsidies will not solve the people’s economic problems.
“In foreign countries, subsidies are only given temporarily while waiting for specific plans to be realised, and when the plan is in place, there is no more subsidy.
“But we give subsidies of hundreds of billions every year non-stop. So if these subsidies continue, our economy will never contract,” he said.
In addition, Bung Moktar said the issue of the rising cost of living is not in Malaysia, but the whole world is affected as a result of various factors such as the economy and war.
“The main factor that led to the collapse of the global economy is the Covid-19 pandemic which hit the whole world, including our country. Recovery is difficult and certain mechanisms are needed,” he said.
Pagoh MP Tan Sri Muhyiddin Yassin proposed the government examine and carry out a comprehensive study to identify the implications of implementing targeted subsidies.
He urged the government to explain the mechanism which will be used in rationalising subsidies like petrol as well as the implementation method, either through income group categories or using a new format, since the cost of living is felt by all citizens regardless of their income or class.
“For example, for the M40 households living in big cities like Kuala Lumpur and Penang, their living cost burden could be the same as the B40 households. What will happen if the government decides that this group will no longer be eligible for petrol subsidy,” Muhyiddin said.
In addition, he said the price of goods and services will also increase if transport and logistics industry operators no longer enjoy fuel subsidies.
Meanwhile, Parit Sulong MP Datuk Seri Noraini Ahmad welcomed the government’s move to empower micro, small, and medium enterprises (MSME) with total loan guarantees reaching up to RM44 billion next year.
To ensure the MSME plan is effective, she proposed the government focus on efforts to empower the halal industry in this country.
“Malaysia is a major player in the halal food and beverage industry. With greater focus on the halal industry, we can continue strengthening our position as a leading global halal food hub.
“This will not only help boost the national economy but will also create job opportunities and funding for the MSME sector,” she said.
Padang Besar MP Rushdan Rusmi proposed the government re-evaluate the grants given to entrepreneurs who have quit their businesses in efforts to improve economic growth.
This is important, considering the latest developments where some entrepreneurs have been forced out of business after being unable to bear their operating costs, which have increased dramatically.
The Dewan Rakyat sitting continues tomorrow.
— Bernama
