Implementing subsidy rationalisation by redefining the T15 group could unfairly impact the middle class, warns Tan Sri Muhyiddin Yassin.
During the Budget 2025 debates on Wednesday (Oct 23), the Pagoh MP said removing petrol subsidies for T15 households would raise living costs and inflation, and called on the government to fulfill its promises, rather than indulging in "sweet talk".
The Bersatu president added that raising the minimum wage to RM1,700 next year would drive up living costs and called for clear policies and actions to control prices if the wage hike proceeds.
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During the Budget 2025 debates on Wednesday (Oct 23), the Pagoh MP said removing petrol subsidies for T15 households would raise living costs and inflation, and called on the government to fulfill its promises, rather than indulging in "sweet talk".
The Bersatu president added that raising the minimum wage to RM1,700 next year would drive up living costs and called for clear policies and actions to control prices if the wage hike proceeds.
Read more at https://tinyurl.com/24fn453t
WATCH MORE: https://thestartv.com/c/news
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NewsTranscript
00:00In a situation where people are bearing the burden of a high cost of living and goods prices are skyrocketing,
00:07the government is pulling subsidies and raising interest rates.
00:12The direct effect of this action is that goods prices will become more expensive
00:17and the burden borne by the people is getting heavier.
00:21With inflation expected to rise between 2 to 3.5 percent next year,
00:28the government needs to re-evaluate the basis and method of implementing this subsidy rationalization.
00:36If Petrol 95 subsidy is withdrawn next year,
00:40I am sure that the chain effect will be felt by the people.
00:46Although the government assures that only the T15 group will pay more,
00:53who are the members of the T15 group?
00:56How many of them are there?
00:58Are they the rich and so on?
01:02According to the data of the Malaysian Government,
01:05those who receive RM13,295 per month
01:11are among the top 15 percent in our country.
01:17They may be husband and wife who receive around RM7,000 per month.
01:24They are not the rich and so on.
01:27With their household debts, car debts, children's education fees,
01:32and other benefits,
01:35or their disposable income,
01:38it may not be enough to absorb the increase in the price of petrol.
01:43If they are a group of businessmen and entrepreneurs,
01:46the cost of increasing the price of petrol that is forced to bear
01:50may be transferred to the users by increasing the price of goods and services.
01:57Finally, those affected by the abolition of this petrol subsidy
02:01are not only the T15 group,
02:04but also the B40 and M40 groups.
02:08At the same time, the government has not yet decided
02:12who is included in the T15 group.
02:15What are the criteria?
02:17How many are there?
02:19So without determining who and how many they are,
02:23how can we ensure that only 15 percent or 5 million will be affected?
02:32Your Excellency, the Government has also decided
02:35to increase the minimum wage to RM1,700
02:40starting in February 2025.
02:42The minimum wage increases are pro and contra.
02:46On the part of the workers who benefit from the increase in wages,
02:50this decision is certainly welcomed.
02:54On the part of the employers who are able to absorb the increase in the cost of wages,
02:59this decision will not be a problem for them.
03:02In fact, it is able to increase the value of the workers' salary to KDNK.
03:08However, it will be a problem
03:10if the employers move the increase in the cost of wages to the workers.
03:15The price of goods and services will certainly increase and has already increased.
03:21All of this, of course, has an effect on the purchasing power of the workers.
03:27In addition, the burden of the cost of spending is being felt by the people
03:33as a result of the rationalization of the subsidy,
03:35the increase in electricity and water rates,
03:38the increase in SST and other interest rates.
03:41Finally, the workers who benefit from the increase in wages
03:45are forced to spend money to cover the increase in daily spending.
03:51Your Excellency,
03:52In fact, the increase in the minimum wage must be supported
03:56with a clear base and price control action.
03:59The strengthening of power through price control and anti-unification act of 2011
04:06must be enforced
04:08so that any unreasonable increase is subjected to a firm action.
04:13The strengthening of power needs to be more effective and also extensive.
04:17In addition, the government must also be more careful
04:20in implementing any base that can cause a chain effect
04:26on the increase in the price of goods and services.
04:29In addition, Your Excellency,
04:31the government must look at the problems faced by small companies
04:37that are unable to cover the increase in the cost of company operations
04:42as a result of the increase in the cost of subsidies.
04:46This is because the chain effect of the increase in the minimum wage is great.
04:51It is not only the increase in the cost of subsidies that companies are forced to bear,
04:57but also the cost of logistics, inventory and other operations.
05:02Suppliers will increase the price.
05:05Transport companies will increase the price.
05:08Ordinary equipment used by companies will also increase the price.
05:13And I am worried that finally,
05:15small companies that are unable to cover the increase in costs
05:20will be forced to fire their employees or companies.
05:25Your Excellency, you said that this is a rich group.
05:28I would like to ask the Minister of Finance.
05:31He was here earlier.
05:32What happened to the high-value goods tax that should be implemented this year?
05:39We have not heard any news about it.
05:42Is it imposed or canceled?
05:45While the 10% sales tax on low-value goods has been implemented since January this year.
05:57It is as if the poor who buy cheap goods are taxed
06:02while the rich who buy expensive goods are not taxed.
06:06This is a bit of a dilapidated foundation.
06:10I would also like to ask the Minister of Finance about the progressive wage base
06:15that has been announced by the government.
06:17Will it be implemented,
06:19canceled,
06:20or not implemented at all?
06:23This needs to be clarified.
06:26Regarding the largest sales tax in history,
06:31I remember that this year's sales tax,
06:342024,
06:35originally amounted to Rp 393.8 billion.
06:39It has increased to Rp 475 billion in terms of actual spending.
06:47So, it is likely that the same thing will happen again next year
06:52if the country's spending is not managed efficiently.
06:57I would also like to touch on the increase in food prices.
07:01This is special.
07:03This is a message to all the poor and low-income people.
07:12I am interested in what the Minister of Finance has said
07:16regarding free education.
07:21I am still amazed at the statement made by the head of the Ministry of Food,
07:26Mr. Tamun,
07:29that when they get a job,
07:31they will not only provide free education,
07:35but also,
07:36what is this?
07:37It is a lie.
07:38It is a lie.
07:45Thank you, Mr. President.
07:47I think the answer is clear.
07:50There are many things that the government has announced,
07:53but it is not implemented.
07:55Or it is done the opposite.
07:57It raises a lot of questions.
07:59Is the government holding on to what has been promised?
08:04Or do they just want to keep their mouths shut?
08:08That is why many parties are still not sure
08:13about what was said by Mr. Tamun.
08:16Mr. President, I am very concerned
08:19about the base of the existing subsidy rationalization
08:23that I suggested to be studied more thoroughly
08:28and organized.
08:29Raising the SST interest rate,
08:31raising the electricity bill,
08:32raising the water price,
08:33and many more things
08:35that have caused many people to move out of their homes in our country
08:39and have become homeless
08:41in the midst of poverty.
08:43And this is something that we should not avoid.
08:46Now, the people are facing a rather heavy burden.
08:50The people are being burdened with temporary problems.
08:53They are all oppressed.
08:55Not in a short period of time,
08:57but in a short period of time.
08:59And the effect on the people in our country,
09:02regardless of whether they are Malays, Chinese, Indians,
09:04in the city or out of the city,
09:05is very burdensome.
09:07That is why I am giving a view here
09:09so that the government is more fair
09:12and more concerned about the problems of the people
09:16and do something more quickly
09:18to ease their burden.