Targeted subsidies: A bitter pill today, but better protection tomorrow

THERE has been much debate over whether subsidy rationalisation benefits the government while ordinary Malaysians, especially the B40 (lower income) group, are left to bear the cost. The concern is understandable.

Cost of living pressures are real, and lower-income households naturally feel increases in fuel, food and transport costs more acutely. But before concluding that subsidy rationalisation has made Malaysians worse off, we need to be clear about one fundamental point: Budi95 and BudiDiesel did not remove subsidies. They targeted them. Malaysians still enjoy subsidised fuel.