In a move that underscores the government's strategic priorities, Prime Minister Dato' Seri Anwar Ibrahim has confirmed there are no current plans to rationalise RON95 fuel subsidies. Instead, the government is channeling its efforts towards the rationalisation of diesel subsidies. This decision, announced by Anwar, who also serves as the Finance Minister, highlights the administration's focus on optimizing public understanding and management of diesel subsidies amid broader economic reforms.
Anwar emphasized that while subsidy rationalisation is an essential part of reducing the government's annual borrowing, the immediate concern is the efficient implementation and public perception of diesel subsidies. “The issue of rationalising RON95 subsidies has not been the immediate focus for now. We are prioritising the public understanding of diesel subsidies at this moment,” he stated.
The government’s financial strategy includes various measures aimed at boosting revenues and ensuring fiscal responsibility. These measures encompass prudent spending, avoiding unnecessary borrowing, and focusing on development purposes when borrowing is indispensable. Anwar pointed out that subsidy rationalisation is part of a comprehensive approach to curbing the government’s yearly borrowing, which also involves tackling corruption and enhancing law enforcement and taxation efficiency.
“If we don't address these issues, our revenues will not increase, but our debt will continue to rise,” Anwar warned. This sentiment reflects the broader fiscal strategy aimed at reducing Malaysia's annual borrowing from RM100 billion in 2022 to RM86 billion in 2024. The Prime Minister underscored that such financial prudence is crucial for the country’s economic stability and growth.
In his keynote address at the National Tax Conference 2024, Anwar reiterated that rationalising subsidies is a necessary step to avoid an unsustainable debt trajectory. Also in attendance were Deputy Finance Minister Lim Hui Ying, Treasury secretary-general Datuk Johan Mahmood Merican, and Inland Revenue Board Malaysia (LHDN) CEO Datuk Dr Abu Tariq Jamaluddin.
Anwar highlighted that the government’s current debt-to-GDP ratio stands at 64%, a figure he described as "too high" and beyond acceptable limits. He cautioned that if Malaysia continues with irresponsible fiscal policies, the nation could miss out on crucial investment opportunities and fail to sustain its projected GDP growth, which is anticipated to reach 5.8% in the second quarter of 2024.
The Prime Minister’s remarks underline the administration’s commitment to fiscal discipline and economic reform. By focusing on diesel subsidy rationalisation and prudent financial management, the government aims to ensure sustainable economic growth while maintaining public support and understanding of its policies.
By: Kpost
Information Source:
Kpost is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact Newswav.
