PM Anwar says subsidy rationalisation toughest act, but vital to curb wastage

PUTRAJAYA, Oct 19 — Subsidy rationalisation is one of the toughest economic acts but it is necessary to plug wastages and leakages in Malaysia, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar, who is also the Finance Minister, said even his predecessors such as Tun Dr Mahathir Mohamad and Datuk Seri Najib Razak had attempted the measure but lacked the determination to implement it.

“Not many countries have managed to make it (subsidy rationalisation) work and few countries dare to even attempt doing it,” Anwar said during the Finance Ministry’s monthly assembly here today.

“The economic theories may not support it but for leaders committed to the Waad Nasional, we are obliged to do our best for the people,” he added.

Anwar said his administration has also increased cash aid allocations under Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM15 billion, up from the RM8 billion earmarked by the previous administration.

“We actually estimate the cash aid allocations to increase up to RM18 billion,” he said.

Anwar also urged civil servants in the Finance Ministry and related agencies to improve their competency and reduce bureaucratic delays, especially as they now enjoy higher wages and better living conditions.

“No great empires in history have suffered decline because they have helped to uplift the people. But, many declined because of greed, rampant corruption and abuse of power,” he added.