ID :
183790
Mon, 05/23/2011 - 11:24
Auther :
Shortlink :
https://oananews.org//node/183790
The shortlink copeid
GOVERNMENT WILL CONSIDER IMPACT OF SUBSIDY REVIEW ON LOWER INCOME GROUP
KUALA LUMPUR, May 23 (Bernama)-- In the face of a subsidy review, the government is expected to propose compensation packages to offset any impact on the lower income group, says Affin Investment Bank economist, Alan Tan Chew Leong.
He told Bernama any further review of subsidies by the government will also be undertaken gradually and at a measured pace to avoid burdening the lower income group.
The subsidy review is in line with the government's move to strategically position the country's economy on a stronger footing to realise the aspirations of Vision 2020.
To date, the government has revised subsidies for fuel and sugar, following the first subsidy rationalisation programme in mid-July last year.
"We continue to expect the government to review the subsidy for petrol (Ron 95) and sugar next month," Alan said.
He said that the price of the RON95 grade petrol would likely be reviewed by 10 sen from RM1.90 per litre to RM2.00. (US$1=RM3.05)
Apart from the subsidy review, he said the government is also committed to cutting back on operating expenditure, with all government ministries exercising fiscal prudence, while exploring alternative sources of revenue such as implementing the government service tax (GST).
"The subsidy review savings are intended to be channeled towards the Government Transformation Programme (GTP), including improving the urban transportation network, rural basic infrastructure and roads and education,"Alan added.
Malaysia is one of the most subsidised nations in the world. The total subsidy of RM74 billion in 2009 was equivalent to RM12,900 per household.
He told Bernama any further review of subsidies by the government will also be undertaken gradually and at a measured pace to avoid burdening the lower income group.
The subsidy review is in line with the government's move to strategically position the country's economy on a stronger footing to realise the aspirations of Vision 2020.
To date, the government has revised subsidies for fuel and sugar, following the first subsidy rationalisation programme in mid-July last year.
"We continue to expect the government to review the subsidy for petrol (Ron 95) and sugar next month," Alan said.
He said that the price of the RON95 grade petrol would likely be reviewed by 10 sen from RM1.90 per litre to RM2.00. (US$1=RM3.05)
Apart from the subsidy review, he said the government is also committed to cutting back on operating expenditure, with all government ministries exercising fiscal prudence, while exploring alternative sources of revenue such as implementing the government service tax (GST).
"The subsidy review savings are intended to be channeled towards the Government Transformation Programme (GTP), including improving the urban transportation network, rural basic infrastructure and roads and education,"Alan added.
Malaysia is one of the most subsidised nations in the world. The total subsidy of RM74 billion in 2009 was equivalent to RM12,900 per household.
