Categories

Login

Government Policy >>>

BN stands for Barang Naik for poor rakyat

(adsbygoogle = window.adsbygoogle || []).push({});

There are two categories of subsidy, one is subsidy for companies like natural gas for IPP and TNB, and another one is subsidy for essential goods like sugar, rice, cooking oil, etc.

No doubt subsidies have to be cut and reduced for less distorted market price, eliminate smuggling of subsidized goods and stop leakage to benefit foreigners.

The rationalization of subsidy has to be prioritized based on its impacts on state financial coffer and welfare of poor rakyat.

>> As pointed out by many politicians and economists, independent power plants IPP operators are the main beneficiary of government subsidy with 18.9 billion is channeled to them last year to over produce 40-50% excess electricity which is wasted and drained to earth.

>> Rent-seeking procurement and project tender processes have cost taxpayers at least 20 billion a year.

>> Prudent spending and tight control on budget will easily save another billions.

>> BN government has to stop spending hundred billions on wasteful white elephant projects.

Subsidy cut on essential goods and fuel should be the last option after above measures are taken by the government. The impact of subsidy cut on essential […]