PUTRAJAYA: Basic income is just one of multiple factors that will be used to determine one’s eligibility for targeted subsidies, and those who do not qualify will have an avenue for appeal, assures the Economy Minister.
Akmal Nasrullah Mohd Nasir (pic) said the government is in the midst of scrutinising the data points to establish a clear and fair dividing line between those who will continue to receive subsidies and those who will be excluded.
He said the ministry is prepared to provide the data and necessary details to serve as a reference for the new subsidy mechanism.
“Evaluation will certainly be based on income, but we are also considering other aspects and looking at various dimensions.
“Once the policy is decided, we will share the details,” he said, adding that a clear dividing line would make it easier for people to accept the new mechanism.
There will also be room for appeals, he told reporters at a press conference here yesterday.
Akmal Nasrullah said the shift away from blanket subsidies is necessary, as the government wants to focus on actual needs and usage rather than to merely implement a flat distribution of resources.
Pending the readiness of the backend systems, the targeted subsidies rollout will likely take place at the beginning of a month, he said.
“Bringing about this change involves system readiness to ensure the screening process runs smoothly.
“Implementation will most likely be at the start of the month but this is still being discussed,” he said, adding that the details are being fine-tuned by a crisis management committee following discussions at the National Economic Action Council (MTEN).
While acknowledging that the T20 income group contribute significantly to the country’s coffers, he stressed that the current subsidy bill is unsustainable.
He said the ministry’s stance is consistent – the provision of this assistance must be targeted.
“We definitely take their contributions to the country into account.
“However, if the current massive amount of subsidies is not managed carefully, it will have negative implications.
“We are trying to strike a balance between protecting the people, managing inflation, and ensuring national development,” he said, adding that only by carefully managing the country’s finances and by ensuring economic activities continue to thrive, can the entire community benefit.
