Targeted subsidies best way to ensure aid reaches right recipients, says deputy minister

BUKIT MERTAJAM: The government's decision to implement targeted subsidies for certain goods or services is the best approach to ensure that assistance reaches intended groups, says Deputy Finance Minister II Steven Sim Chee Keong.

He said this approach was to prevent wastage as what had happened in the past when non-citizens took advantage of subsidies, leading to losses.

Sim, who is also Bukit Mertajam MP, said targeted subsidies would not burden 90% of Malaysians.

"We want to ensure the funds used for subsidies are used in the right places... Whether it's the B40 or M40 group, if they need it, we will implement targeted subsidies.

"The savings from these targeted subsidies will be reinvested, for example, through the Rahmah Cash Aid (STR), for more schools, hospitals, to upgrade health clinics, and to provide assistance to Small and Medium Enterprises (SMEs)," he said after attending the Civil Defence Force’s Kampung Siaga 221 programme in Kampung Bukit Teh on Sunday (Oct 22).

Sim, however, said that this approach would be carried out in phases, along with studies conducted to ensure that its impact did not burden the majority of people.

Prior to this, Economy Minister Rafizi Ramli announced that the government expects the Targeted Subsidy Programme to be fully implemented next year.

Rafizi said the Central Database Hub was expected to undergo trials from next month before opening to the public in January for verification of personal information.

Meanwhile, Sim said the Kampung Siaga programme was aimed at enhancing readiness and preparedness in facing disasters, especially floods.

He said through Budget 2024, the government had allocated about RM13bil for various projects, including flood mitigation plans, the upgrading of drainage systems, reservoirs, slope repairs, equipment and relief centres. - Bernama