KUALA LUMPUR, Oct 24 — The implementation of targeted subsidies requires a detailed mechanism so that no one is left out and affected by the decision, said Bera Member of Parliament Datuk Seri Ismail Sabri Yaakob today.
He said it is important to refine the mechanism for the implementation of targeted subsidies because subsidies have become “stuck” in the economy as a structural component.
He added that government subsidies are not only focused on certain sectors and segments but across the entire sector and market, including the labour market.
“Therefore, I would like to ask what mechanism the government will use to implement targeted subsidies next year because it was not touched upon in the tabling of Budget 2024,” he said during the debate on the Supply Bill 2024 in the Dewan Rakyat here today.
According to him, the government has developed the Main Data Base (PADU) system as a database that will be used in January next year to ensure that this subsidy is given to the deserving group only.
“The question is… is this system ready? Has this system been tested for its effectiveness because we only have two months before it is launched?
“The next question is who is eligible to be given a targeted subsidy? For example, if a targeted petrol subsidy is implemented, how will the government determine the characteristics of those who are eligible? Is it through the amount of monthly income or vehicle engine capacity?” asked Ismail Sabri.
He added that the implementation of targeted subsidies without the right mechanism will cause the people to continue to be burdened, not to mention the rising cost of living.
Regarding the price of chicken, Ismail Sabri said the price of chicken has already increased even though the price of chicken has not been floated.
“The price of chicken has not been floated yet but two days ago it was reported in a Malaysian daily that the price of chicken reached RM11 per kilogramme. What will happen next year if the price of chicken is floated?
“It will definitely become more uncontrollable because as much as 70 per cent of the total cost of production is food imported from abroad in addition to logistics, labour, utilities and medicines. The cost of chicken feed is expected to continue to rise due to the fall of the ringgit,” he added.