KUALA LUMPUR, August 24 – In an updated statement, Minister of Economy, Rafizi Ramli, assured the public that despite the country’s debt burden and high management expenditure, the government remains committed to implementing various initiatives to enhance the welfare and standard of living of the people. In his speech at the Madani Outreach event in the Sungai Tua State Assembly constituency on Sunday evening, Rafizi emphasized that the government operates on a limited budget, with national income amounting to only around RM300 billion. Yet, it has to allocate substantial funds for subsidies, administrative expenses, and debt interest payments.
“The government has to allocate up to RM80 billion for subsidies and another approximately RM30 billion for servicing the national debt. Additionally, there are expenses related to employee salaries, government building rentals, and hundreds of billions for various government projects,” said Rafizi. Despite these financial challenges, the government is determined to uplift the people by increasing wages, constructing more affordable housing, and implementing poverty eradication programs that can positively transform the lives of the citizens.
Rafizi also pointed out that due to the existing financial constraints, the government cannot afford to further subsidize fuel prices. He stressed that any reduction in fuel prices would require massive financial support, given the current global crude oil price of US$80 per barrel. To reduce fuel prices by 20 sen, the government would need to provide RM1 subsidy per liter and maintain the price at RM2.05. This would have significant implications, affecting the allocation for other crucial projects, explained Rafizi.
He cautioned against adopting populist measures to win the upcoming State Elections (PRN), emphasizing that the government prioritizes the welfare of the people by focusing on essential infrastructure development and civil service wages. We could easily say, ‘Let’s lower fuel prices by 20 sen,’ and everyone would vote for us. But this means cutting teachers’ salaries, halting low-cost housing projects for the poor, leaving water supply issues unresolved in Kelantan, and not being able to provide assistance to university students, stated the Deputy President of Parti Keadilan Rakyat.
Despite the challenges, the government remains steadfast in its commitment to improving the lives of the people, seeking pragmatic solutions that will contribute to sustainable development and progress for all citizens.
