Govt still bears RM10.8bil in electricity subsidies, says Deputy Finance Minister II


  • Nation
  • Monday, 25 Sep 2023

KUALA LUMPUR: The government still bears a total of RM10.8bil in electricity subsidies, compared with the original amount of RM14.9bil, says Steven Sim Chee Keong.

The Deputy Finance Minister II said that there was a saving of RM4bil for the period from January to June this year involving electricity subsidies.

ALSO READ: Subsidies to cost govt RM100bil unless reforms made, says Rafizi

From January 2023, the government no longer provides full electricity tariff subsidy to large companies with high electricity consumption.

"More targeted and sustainable subsidy management is a priority, in ensuring that government expenditure can be channelled to development needs which can provide higher added value to the national economy.

ALSO READ: Anwar to present details on implementing targeted subsidies in Budget 2024

"The government is also studying the implementation of targeted subsidies, based on appropriate and feasible models, by identifying methods which are not only effective but also save time, and have minimal financial implications for the government,” he said when winding up his debate at the Dewan Negara's special session on the 12th Malaysia Plan Mid-term Review (12MP MTR), in Parliament Monday (Sept 25).

Meanwhile, Sim said in the context of determining eligible recipients, it is also necessary to diversify, because the types of subsidies and user groups are different.

ALSO READ: Go beyond subsidies to help the poor

"The determination of eligibility criteria is still under evaluation because it is very important to be carefully studied so that the distribution of resources is made more efficiently, while at the same time reducing exclusion and inclusion errors.

"Accordingly, a special task force, which has been established under the Finance Ministry, is studying the mechanism for implementing appropriate targeted subsidies which involves all community groups, whether B40, M40 or T20, both in cities and rural areas,” he said. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Lima’25 underscores Malaysia’s commitment to defence readiness, regional peace, says PM
Sarawak and Sabah gears up for its annual festivals with mega parties and the grand success of 'Kosert Meletop TVS'
Perak cops detonate old artillery shell found in Seri Iskandar
National Audit Dept powers expanded to cover 1,856 GLCs
Lima exhibition location in Langkawi to be expanded, says PM
Immigration Dept nabs 17 bangladeshi illegal immigrants in Kota Bharu
Cops seeking public's assistance to find missing teen, Jovitra
PAC to hold four follow-up proceedings starting May 20
Pamela Ling is still missing, say cops in response to claims
PKR polls: Anwar reminds members to not harbour enmity during party's election

Others Also Read