KUALA LUMPUR: The government will continue focusing on expanding the country’s fiscal space to enhance basic infrastructure for citizens including schools, clinics and other public amenities.
Finance Minister II Datuk Seri Amir Hamzah Azizan stated that one current priority involves shifting from blanket subsidies to a targeted subsidy mechanism.
He explained that the electricity tariff subsidy introduced in July has already benefited middle-income groups with bill reductions up to 14%.
“About 85% of Malaysians are not affected by the electricity subsidy targeting,“ he said during the Dewan Negara sitting.
Amir Hamzah responded to a supplementary question from Senator Datuk Prof Emeritus Dr Mohammad Redzuan Othman regarding government measures to assist middle-income groups amid rising living costs.
He acknowledged that while re-evaluating household income categories by factors like housing and dependents would be more detailed, implementation would prove complex.
“The Ministry of Finance is not ready to implement it for now,“ he added regarding the proposed subsidy evaluation method.
The government will continue with alternative subsidy targeting and more focused assistance as current intervention measures.
Amir Hamzah emphasised that changing subsidy delivery methods helps reduce the fiscal burden while maintaining support for those in need. – Bernama
