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

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.

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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.

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"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

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