In his opening speech at the PKR annual congress on Saturday (Nov 25) night, party president and Prime Minister Datuk Seri Anwar Ibrahim said one of the unity government’s priorities going into the new year is to implement the targeted subsidy mechanism to remove subsidies for high-income groups.
He also questioned why the inherited problem of subsidies was never addressed by the previous administrations that had increased the country’s growing debts.
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He also questioned why the inherited problem of subsidies was never addressed by the previous administrations that had increased the country’s growing debts.
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NewsTranscript
00:00 "Now we are taking a new approach. A year ago, we started with some approaches, including the price of chicken, which was successful. We will target subsidies. I ask my colleagues to understand, because we will face this problem.
00:27 They are in debt. The deficit is rising. The government's burden is increasing. There is no government that is able to continue with the practice of subsidies now.
00:44 But subsidies that are being drawn do not have to be for the benefit of the people. We give an example of electricity. Electricity subsidies today are worth tens of billions of ringgit.
01:03 Foreigners get 35 million for subsidies. The rich also get subsidies.
01:22 But when subsidies are implemented, the people are not burdened. There is no additional cost for the people.
01:33 But for the highest 10% of the country, subsidies will be drawn. This means that we can save almost 4 billion ringgit from the deficit of subsidies.
01:53 So we have to understand, are the people affected? Only the top 10% are affected. So why are the banks angry? Who is he representing?
02:07 He is representing the rich. If he represents the people, 90% of the people are not affected. Only 10% are affected, and 35 million foreigners are in our country.
02:24 So I hope that this matter is understood. I even give a guarantee, if it is said that because of the increase in subsidies and affecting the people, we will add STR for the people so that they can pay the loss.
02:49 The reality is that the steps of subsidies are no longer relevant and the cost of subsidies is not even worth it.
02:55 It continues to rise every year.
02:58 The use of subsidies in 2022 is worth 77.3 billion ringgit. Every year, 77.3 billion ringgit for subsidies.
03:12 Petrol, diesel, LPG, cooking oil, flour, electric, make it the highest amount of subsidies in history.
03:21 If you look at 2023, subsidies can reach 81 billion ringgit if not handled immediately.
03:35 Governments that are responsible must think about this matter and try to solve it.
03:43 If it is not done immediately, it is not responsible.
03:47 They must answer to the people, why are subsidies given to 35 million foreigners and why are subsidies given to the rich? Why is there no courage and political determination to solve this problem?
04:06 We do not increase the price for the rich, we pull subsidies. This is our foundation now, which means subsidies are like charity.
04:17 We are the best in this country because we are charitable to the rich.
04:23 This is what is happening in our country and this must be corrected.
04:31 So, the approach to subsidizing is targeted and will continue to be taken by the government,
04:37 but still provide a safer network that is more effective for the poor.
04:46 For more information, visit www.fema.gov