‘Large subsidy will support consumption spending’


PETALING JAYA: Large subsidy allocation and various goodies for low income and vulnerable groups will help support overall consumption spending, says Dr Yeah Kim Leng.

In the face of rising prices and a global slowdown expected in 2023, the support would be much needed by the people, said the director of the economic studies programme at the Jeffrey Cheah Institute of Sunway University.

“Subsidised transport costs for essential items will help to hold down purchase prices.

“Importantly, this will assure adequate supplies reach remote areas,” he said in response to RM55bil being set aside under Budget 2023 for subsidies and incentives to ease the burden of the people.

He added that this was also done to cushion rising world prices and fuel costs due to supply disruptions caused by the Covid-19 pandemic and the Russia-Ukraine war.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that the large amount of funds was to minimise the cost of living through price control of goods and services.

“The government is committed to ensuring basic necessities such as rice, cooking oil, LPG gas, petrol and diesel reach rural residents at reasonable prices.

“RM200mil covers the cost of transport and distribution of basic necessities,” he said when tabling the Budget in Parliament yesterday.

Seeing the success of the Keluarga Malaysia Sales Programme, Tengku Zafrul also said the government was committed to continuing it throughout the country with an allocation of RM100mil.

On this, Yeah said such sales programmes would encourage wholesalers and retailers to lower prices and increase sales volume, thereby benefiting consumers and businesses.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

subsidy , income , budget

   

Next In Nation

DID issues flood preparedness notice for five states
Johor lawmaker urges state to redraw maritime border with Singapore
1MDB trial: Najib fails in latest attempt to remove Sri Ram
5G: Comms and Digital Ministry to meet Finance Ministry over rollout, says Fahmi
Solve problems affecting the people, PM Anwar tells his Cabinet
TikTok took down 1,126 provocative videos after GE15, says Fahmi
Negri MB reiterates call for joint state elections next year
Separation of powers: First steps afoot in splitting Public Prosecutor from AG, says Azalina
Lorry driver suffers broken limbs after crashing into toll booth
Year in Search 2022: Anwar Ibrahim emerges as top trending local personality on Google

Others Also Read