WITH the people burdened by tax hikes and the rising cost of living, the government should delay implementing the petrol and diesel subsidy rationalisation, says Tan Sri Muhyiddin Yassin.
The Pagoh MP said the two-point hike in the service tax would lead to price increases across the board.
“Most Malaysians will feel the pinch. If this (subsidy rationalisation) is implemented, I’m 100% confident that there will be price hikes on all goods and services, so I am requesting the government study this plan carefully.
“Is it appropriate to implement it when the people are facing various tax hikes?
“Perhaps it is better for the government to delay this,” said Muhyiddin during his speech on the motion of thanks on the royal address.
The Perikatan Nasional chairman said he is aware that Malaysia is facing a heavy fiscal burden due to huge subsidies.
“But are we willing to see Malaysians suffer, being burdened by various issues involving the cost of living and tax hikes?
“After a year and five months since the Madani government came to power, the economic data has been deteriorating,” said the former prime minister.
He also asked why the ringgit has been depreciating.
“I am not denying that it is also due to the US Federal Reserve interest rate measures.
“Hence, the ringgit depreciated against the dollar,” Muhyiddin said.
He also noted that the ringgit has also depreciated against other currencies, leading to higher import costs.
Bank Negara’s international reserves stood at RM114.8bil as of Jan 2024, which is enough to cover imports for less than 3.6 months, Muhyiddin said.
