THE RM77.3 bil subsidies, with the bulk allocated for energy subsidies that would benefit the higher income group, was unwise and wasteful, said Warisan president Datuk Seri Mohd Shafie Apdal.
According to the former Sabah chief minister, the subsidies for this year – which was projected to reach an all-time high – was higher than the country’s entire national development expenditure of RM76.6 bil.
“Instead, we are only spending 10% of that on development expenditures for health and education, which in the long run will be beneficial,” he said in a statement today (June 27).
“Where is the country heading to? Economic problems in this country are worsening and to spend money on subsidies which is more than the development expenditure will not improve the situation.
“The people need help, but giving subsidies is a momentary (fix) and therefore not sustainable. What happens after the money for subsidies runs out?”
The Semporna MP further urged the Government to explain how the subsidies would be funded and what impact it would have on the Government’s debt and deficit, and proposed that the subsidies be re-allocated and revamped to specifically target deserving households.
Citing the 60% allowance increment recently given to FGV Holdings Bhd’s non-executive chairman Datuk Dzulkifli Abd Wahab, he further urged the Government to review its bloated cabinet and those in the top management of government-linked companies (GLCs), adding that this must be carried out swiftly.
“I would suggest not just a 25% cut in their salaries and allowances but for the number of ministers and deputy ministers to be cut by half,” he remarked.
Shafie added that bonuses and other perks for the top management and board of directors of GLCs should be put on hold for now.
Rather, the focus ought to be given to food security to reduce pressures on imports and prices; improving and expanding public transportation especially in rural areas; and fair taxes.
In addition, he pointed out that the Government should also look into more sustainable and sound management of the country’s economy. – June 27, 2022
