Govt spending will continue to rise if subsidy leaks not addressed - PM

savemalaysia

Publish date: Sat, 02 Nov 2024, 05:05 PM

BUTTERWORTH: Prime Minister Datuk Seri Anwar Ibrahim has expressed concern that government spending will continue to rise, yet subsidies may not reach the intended groups if the issue of subsidy leaks is not promptly addressed.

He said that studies from various conferences and international economists acknowledged that Malaysia had one of the lowest tax rates while providing some of the highest subsidies in Asia.

"While it is good news that our subsidies are high, without reliable data and numbers, we find that many subsidy leaks and wastage occur, which must be addressed.

"If not addressed, we will keep increasing spending, but it (the subsidies) may not reach the intended groups.

"This is a critical and strategic role that must be played by the DOSM," he said in his speech at the 75th anniversary celebration of DOSM at the PICCA Convention Centre @ Butterworth Arena here today.

Present were Economy Minister Rafizi Ramli and chief statistician Datuk Seri Dr Mohd Uzir Mahidin.

According to Anwar, the amount allocated for agricultural assistance, subsidies for the people, and funds for the poor in the country is substantial.

"I am certainly waiting for the changes to occur, including new measures to be introduced at the state and district levels. This is to obtain figures, as pursued by the Central Database Hub (Padu), which will help us eliminate leaks and overlaps in distributing resources to our people," he added.

Anwar said that all planning, growth projections, investments, as well as studies on poverty and assistance to the people require accurate data and numbers.

"This means that the pulse of the people and the country depends on our efficiency and integrity in producing reliable data and figures.

"One thing that cannot be disputed in this country, despite many questioning institutions and agencies, is that DOSM has established a performance and value that is respected by all citizens.

"This is very helpful because when the figures are trusted, it can aid the country in driving growth and achieving a more equitable distribution," he said.

Meanwhile, Anwar expressed his anticipation for the conclusion of the 2024 Agricultural Census to be released by DOSM.

"The conclusions of the 2024 Agricultural Census will help us formulate agricultural policies that ensure food security.

"It will also help us ascertain the actual number of farmers and fishermen to address their needs," he said.

https://www.nst.com.my/news/nation/2024/11/1128735/govt-spending-will-continue-rise-if-subsidy-leaks-not-addressed-pm

Discussions

Be the first to like this. Showing 9 of 9 comments

chinaman

every rm1 gomen operating expenditure, rm0.31 spent on civil servants salary alone. so. its not due to subsidy alone. why gomen increase salary to add salt to injury? civil servants all are holy cow?

2 months ago

chinaman

gomen wrong focus on subsidy. will citizens need subsidy if rm is strong like SGD? why rm still kanasai after 2 years Mana Ni gomen? subsidy and free hand out manifest of poor governance from lack of new job creation, income

2 months ago

EngineeringProfit

Fuel and cooking oil smuggling from Malaysia to neighboring countries like Thailand and Indonesia results in significant public fund losses each year due to the disparity in prices created by government subsidies. Malaysia offers petrol at a subsidized rate of RM2.05 per liter, significantly lower than the market rate in Thailand, where comparable fuel costs about 35.45 baht (around RM4.50) per liter. Similarly, cooking oil is priced at RM2.50 per kilogram in Malaysia, compared to RM8 in Thailand. These price differences incentivize smugglers, particularly in border areas, where they sell Malaysian-subsidized goods for substantial profit.

Despite ongoing enforcement efforts, fuel and cooking oil smuggling remains a persistent issue. Authorities have found that smugglers often use modified vehicles to transport fuel across the border. Cooking oil smuggling, while reportedly reduced in recent years, continues to appeal to southern Thai residents who prefer Malaysian products for their affordability and perceived halal quality. In a recent period from January to August, seizures of controlled goods at the Malaysian-Thai border—including fuel and cooking oil—amounted to about RM451,378, with additional losses likely not accounted for due to undetected smuggling operations.

These activities continue to undermine Malaysia's subsidy programs, costing the government millions of ringgit annually in lost revenue. Effective control remains challenging due to the extensive border and high demand in neighboring countries, leading to a recurring drain on public funds.

2 months ago

chinaman

really mei? so why borneo still exempted from diesel rationalization? only west MY people are smugglers?

2 months ago

chinaman

responsible gomen must come out with alternative to subsidy rationalization. rm must be strong sustainably to allow complete wipe out of subsidy.

2 months ago

EngineeringProfit

Like Sarawak does - we expand the size of the pie

(While peninsular carthels continue to fight for "who move my cheese......." Hehe)

2 months ago

icecool

"Prime Minister Datuk Seri Anwar Ibrahim has expressed concern that government spending will continue to rise, yet subsidies may not reach the intended groups if the issue of subsidy leaks is not promptly addressed."
bullshit, the reason government spending rise is because of government chasing the fantasy growth numbers to justify to the people as economic progress and nation development. Don't spin the truth.

2 months ago

Income

EngineeringProfit
Like Sarawak does - we expand the size of the pie

(While peninsular carthels continue to fight for "who move my cheese......." Hehe)
02/11/2024 6:50 PM

?

You are right. Nyap Sayot.

2 months ago

speakup

Pmx talk about subsidy leak, no more talk about corruption? no more talk about spending on unnecessary thing like national service?

2 months ago

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