In Parliament, Opposition Leader raps govt for relying on subsidies to tackle price squeeze
Anwar suggested that the Umno-led administration’s response to inflationary pressure had been inadequate and that it required deeper structural reform. — Bernama pic
KUALA LUMPUR, July 18 — Opposition Leader Datuk Seri Anwar Ibrahim began the mid-year parliamentary session today by panning Prime Minister Datuk Seri Ismail Sabri Yaakob’s government for relying too much on subsidies to tackle the soaring cost of living.
The Port Dickson MP suggested that the Umno-led administration’s response to inflationary pressure had been inadequate and that it required deeper structural reform.
Anwar cited the ringgit’s depreciation, among others, pointing to the need to rein in the cost of food imports.
The ringgit is currently among the region’s worst performers, having dropped by nearly 5 per cent against the greenback in the last two years to push import costs up.
Malaysia is a net food importer and has become increasingly reliant on other countries to source essential food items, including rice.
“What you just explained was a conventional approach. There seems to be no willingness to bring structural changes. For example, the prime minister said import costs have risen. That is because the ringgit’s value has depreciated so much, but there have been no efforts to make the currency improve,” Anwar said during Question Time.
KUALA LUMPUR, July 18 — Opposition Leader Datuk Seri Anwar Ibrahim began the mid-year parliamentary session today by panning Prime Minister Datuk Seri Ismail Sabri Yaakob’s government for relying too much on subsidies to tackle the soaring cost of living.
The Port Dickson MP suggested that the Umno-led administration’s response to inflationary pressure had been inadequate and that it required deeper structural reform.
Anwar cited the ringgit’s depreciation, among others, pointing to the need to rein in the cost of food imports.
The ringgit is currently among the region’s worst performers, having dropped by nearly 5 per cent against the greenback in the last two years to push import costs up.
Malaysia is a net food importer and has become increasingly reliant on other countries to source essential food items, including rice.
“What you just explained was a conventional approach. There seems to be no willingness to bring structural changes. For example, the prime minister said import costs have risen. That is because the ringgit’s value has depreciated so much, but there have been no efforts to make the currency improve,” Anwar said during Question Time.
Giving subsidies, while a welcome development, is not sustainable long term.
ReplyDeleteTo me, it is a band aid and is an "easy" solution. "Easy" because there is no need to crack heads for a long lasting workable solution. Subsidies drain the country's coffers. It becomes an expectation by the people and to politicians, it is a simple and "cheap" way to "bribe" the rakyat. On top of that subsidies do not target only the deserving segments of the population.
Ultimately, it will cost the country dearly. As it is, Malaysia will spend between MR77 to MR80 bil on subsidies.
When will we draw the line? Or do we simply increase our country debt or curtail infrastructure projects to fund these subsidies?
We need a rational government not a unthinking keluarga Malaysia government with economists making the right sounds to warn the government not to continue on this slippery road.