Wednesday, May 18, 2022

Large chunk of govt subsidies enjoyed by the rich, says Tengku Zafrul



Large chunk of govt subsidies enjoyed by the rich, says Tengku Zafrul


Finance minister Tengku Zafrul Aziz says a big portion of the petrol subsidies benefit the T20 group. (Bernama pic)

PETALING JAYA: A large portion of the subsidies provided by the government has benefitted the rich or the T20 group, says finance minister Tengku Zafrul Aziz.

This year, Tengku Zafrul said the subsidies are expected to exceed RM30 billion and more than RM15 billion will benefit the T20 group.


He said this included a big portion of the petrol subsidies, amounting to RM4 billion as of March.

Tengku Zafrul said this happened because the subsidies provided by the government were comprehensive and benefitted all levels of society.

“For every RM1 of fuel subsidy, 53 sen goes to the T20 group, while 15 sen is utilised by the B40,” he said according to an Astro Awani report.

Tengku Zafrul also noted that the government was reviewing the electricity and petrol subsidy mechanisms to ensure it was more targeted and focused on the vulnerable.

“In Feb 2021, the subsidy for petroleum products borne by the government was only RM200 million. However, by Jan 2022, it was RM2 billion and in March, it was more than RM4 billion.

“Meanwhile, for the electricity subsidy in the first half of 2022, the government will maintain the electricity tariff for all homes, large and small, with a subsidy cost of about RM700 million,” he said.

Tengku Zafrul said the government was looking into conducting engagement sessions with stakeholders and the findings will be presented to the Cabinet.


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