KUALA LUMPUR, July 4 – Prime Minister Datuk Seri Anwar Ibrahim has clarified that the reduction of government subsidies is primarily targeted at the rich or those with high incomes (T20), in order to alleviate the burden on the poor. He emphasized that the reduction is minimal and necessary for economic balance. During the Minister’s Question Time session at the Dewan Rakyat conference on Tuesday, PM Anwar responded to questions regarding the government’s approach to reducing subsidies and the impact on the people.
He stated that the reduction of subsidies for the rich is essential to ensure that the poor are not burdened. PM Anwar dismissed the notion that the reduction of subsidies would affect the less fortunate, emphasizing that the focus is on the affluent. He proposed taking funds from individuals like Tan Sri Syed Mokhtar Albukhary, Chairman of Yayasan Albukhary, to ease the financial pressure on the underprivileged. Addressing the issue of electricity subsidy reduction, PM Anwar clarified that only the wealthy, particularly those with large houses, would be affected.
He emphasized that 90 percent of the population would not experience any changes in their electricity subsidy. Furthermore, the government has not increased electricity tariffs for small and medium industries (SMEs) and the food industry. PM Anwar urged for a fair understanding of the subsidy reduction, highlighting that it primarily impacts the rich. He discouraged turning the issue into a political matter and questioned whose interests were being championed. Regarding the Hajj subsidy, PM Anwar stated that there would be no increase for the people, as the focus is on the T20 group.
He emphasized that the wealthy should bear the full cost of their Hajj pilgrimage without relying on subsidies from the Hajj Fund (TH). PM Anwar acknowledged complaints regarding this decision but remained firm in his stance. On May 22, PM Anwar, who is also the Minister of Finance, announced that the T20 group would no longer receive subsidy benefits for electricity usage and Hajj Financial Assistance.
The Main Data Base (PADU) will be utilized to manage and coordinate the assessment of subsidy distribution to eligible groups. The government’s move to reduce subsidies for the affluent aims to promote economic balance and ensure that those in need receive the necessary support. PM Anwar reiterated his commitment to address the challenges faced by the people while maintaining a fair and sustainable subsidy system.
