Savings forecast from targeted subsidy regime

While it is difficult to estimate the exact cost savings to the country’s coffers, the T20 income earners form quite a big part of consumption of subsidies, said Lee.

KUALA LUMPUR: Any plans for a targeted subsidy regime implementation may save up to RM25bil or more from the government’s expenditure, according to some estimates.

However, leakages from the current open subsidy system should also be plugged since this is a hidden cost element of which the full extent may not yet be known now, said economists.