Fuel subsidy restructuring must not burden the people, says Dr Wee
Plans to restructure the fuel subsidy by next month must be approached with caution to avoid burdening the public with price hikes, says MCA president Datuk Seri Dr Wee Ka Siong.
Speaking on the radio talk show "The Pulse of the Malaysian Chinese Economy" on Thursday, Dr Wee emphasised that the government must be careful with subsidy allocations and ensure that those who meet the criteria are not excluded from the restructured system.
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Speaking on the radio talk show "The Pulse of the Malaysian Chinese Economy" on Thursday, Dr Wee emphasised that the government must be careful with subsidy allocations and ensure that those who meet the criteria are not excluded from the restructured system.
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NewsTranscript
00:00 Plans to restructure the fuel subsidy by next month must be done carefully to avoid burdening
00:07 Malaysians with price hikes given the high living costs.
00:10 "I am also worried.
00:12 At this time, we have to think of the best way."
00:16 Dr. Wee said that when appearing as a guest at Thursday's radio talk show, "The Pulse
00:20 of the Malaysian-Chinese Economy" by Chinese radio station 988, he said the restructuring
00:28 should factor in all possible situations that people may face to ensure a comprehensive
00:33 plan and to avoid abuse.
00:36 The Iyer Hitam MP and former transport minister said the government might source for funds
00:41 by slashing subsidies or from the sales and service tax SST collection, especially since
00:46 it had offered civil servants a pay rise of more than 13% starting December, which would
00:51 require an allocation of over 10 billion ringgit.
00:55 "If civil servants are allowed to pay a pay rise today, it is a good thing for them.
01:01 But if I am to pay a pay rise of 10 billion, I need the funds to pay the civil servants
01:09 a pay rise.
01:10 It is the same production.
01:12 If you think about it, if SST is reduced by 6% to 8%, you only get 3 billion.
01:21 But if Dijon is reduced by 6%, it is 9% or 10%.
01:26 If you don't want to start from SST, you can start from subsidies.
01:31 I mentioned earlier, 4 billion, or 3 billion would be fine.
01:36 If you say, I was going to save 10 billion, 100 billion, and take away 1/3 of it, and
01:49 then reduce it to 4 billion, what would happen?
01:56 The white house would go up.
01:59 This is the biggest challenge."
02:02 Dr. We cited a precedent in May 2007, when then Prime Minister Tun Abdullah Ahmad Badawi
02:08 announced salary increases for civil servants, but faced backlash when fuel prices rose afterward.
02:14 "I know it is expensive to fill up the tank every day.
02:19 I can't afford it.
02:20 When fuel prices rise, I face the second layer of pressure.
02:23 I have to be careful."
02:24 He also called for the restructured system not to leave out those who met the criteria
02:29 for subsidies.
02:30 Dr. We also raised concerns about the use of identification documents such as MyCard
02:36 or car registration to verify the eligibility of the motorist for fuel subsidy.
02:41 He said the information collected under the Central Database Hub (PADU) system must ensure
02:47 that this wealth of data is used effectively to navigate the challenges presented by subsidy
02:51 management.
02:52 Amid challenges like taxes, economic downturn, and a weak ringgit, Dr. We emphasized the
02:59 need for the government to enhance efforts in deepening economic development.
03:03 "Many government projects are about to start.
03:07 If they don't start, they are still in the planning stage.
03:11 The economy cannot be driven.
03:13 If the economy is not driven, the market will not be able to consume.
03:17 This is our biggest problem."
03:19 With a worrying domestic demand, particularly in the retail sector, he said Malaysia needs
03:24 to attract more foreign investments and tourists, forge partnerships with countries, and capitalize
03:29 on their potential.
03:30 For more UN videos visit: www.un.org/webcast
03:35 Transcription by ESO; translation by —