WHEN food subsidies are withdrawn, the increase in prices of essentials will have to been borne by the people.
The increases in the prices of cooking oil, sugar, electricity rates, eggs, chicken, vegetables etc, inevitably, has imposed tremendous economic pressure on the people, especially the B40 and M40.
It then led to higher household expenditure and a corresponding erosion of wages earned. Inflation, largely contained through selective subsidies, continues to spike and may well lead to a demand for wage increases to mitigate the higher cost of living.
In my view, the recently enhanced minimum wage would become obsolete given the rise in the cost of living due to withdrawal of subsidies and inflation. What more if the net is casted to capture subsidies in other areas, including fuel, in the future.
We also need to be concerned if the Government decides to re-introduce the Goods and Services Tax (GST) as it would impact the cost on goods and services even further.
Whilst removal of targetted subsidies will result in diminishing disposal income of wage earners, those in the marginalised informal sector will be the most affected as they neither have a fixed source of income nor an adequate state funded social security safety scheme.
Having said that, the announcement by Prime Minister Datuk Seri Ismail Sabri Yaakob of an increase of RM100 to the Bantuan Keluarga Malaysia (BKM) for the B40 is pathetic!
If the Government is truly concerned with the plight of the working-class citizens, it ought to consider trimming the bloated Cabinet, which includes getting rid of the so-called special envoys to cut cost.
By doing so, a huge chunk of funds can be channelled to the people.
The Prime Minister and his ministers should also empathise with the plight of the people by taking a reduction of their salaries, perks and privileges, which savings may well be distributed to the people through enhanced BKM payments.
A parallel reduction, of the incomprehensible schedule of payments, perks and financial rewards dished out to the top echelon of Government-linked companies would also be appropriate in galvanising much needed funds that can be allocated to the most vulnerable citizens of the nation. – June 25, 2022
K Veeriah is a veteran unionist and a contributor to FocusM.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
