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PM: Subsidies enjoyed by rich in Malaysia

IPOH: Malaysia is among countries which provides subsidies that are enjoyed by all, including the rich as well as foreigners.

Prime Minister Datuk Seri Anwar Ibrahim said this was why it was important for the government to restructure its subsidy so that target groups such as the B40 will benefit from it.

He said he was against the giving of subsidies when it was proven that the rich were taking advantage of them. He cited Malaysia's subsidised rates for performing the haj pilgrimage under Tabung Haji as an example of such an occurrence.

"So when Tabung Haji (TH) still gave subsidies to their contributors who earned RM1 million per month and still supported them to perform haj, I said no. They can afford to pay for it themselves. TH can only assist them, but not with a subsidy.

"It would be great if the subsidy goes to farmers, fishermen, government servants, police and the army," he said in a speech at the launch of the national-level Madani Medical Scheme and Madani Afiat Programme at Bulatan Sultan Azlan Shah in Meru here, today.

He said the price of sugar and fuel in Malaysia is low due to subsidies, and he admitted these subsidies would probably need to be retained as it was related to necessities and food.

However, Anwar also pointed out that the price of fuel depended on many factors and had changed in different times in the past.

"There was an old clip of me in 2008, where I said if we (his party) wins, the price of fuel will be decreased tomorrow.

"At that time, the price of fuel in Saudi Arabia was 50 cents, and our fuel price was higher than that.

"But today, our fuel price is lower than in Saudi Arabia. Do you still want to ask me to decrease the price of fuel? The county will go bankrupt."

Anwar said it was also unfair for high-income people or households to enjoy the significant amounts of subsidies in public healthcare because this segments of people could afford to pay.

He said one could even question the definition of a "rich" person who enjoys Malaysia's public healthcare subsidies.

"For those who seek treatment at the hospital, the fees are free but some rich people also enjoy this 'free' fee.

"Will it be wrong for the government to say that all people can get treatment, but the rich must pay higher?

"So who are the rich? Those who earn RM40,000 per month. Some even earn RM1 million per month."

Anwar said it was also a good idea for subsidies for sugar to be reviewed because the food item was related to certain diseases.

"If the price of sugar is low, the number of diabetic cases will increase. Should we introduce a system where we increase the price of sugar, and people could reduce their intake of sugar?"

He said the government could use the money it gains from a rationalisation of sugar subsidy to be channelled into programmes to prevent non-communicable diseases such as diabetes.

"If profit margin calculations are made and (it is found that ) we can earn RM500,000 from (a rationalisation of sugar subsidy), the government will not take that money but return it to health projects, especially on diabetes treatments.

"This will allow our family and friends suffering from diabetes to get proper and better treatment. But I can't do this now, people would say bad things to me, but I am thinking about a subsidy method. Sometimes it is not reasonable," he added.

Anwar said Malaysia is one of the countries that provides subsidies, and this would still continue.

"When people ask me can this subsidy be continued? Yes. Can fuel subsidies be continued? Yes.

"But don't give (subsidies) to millions of foreigners. Singaporeans entering Malaysia enjoy this subsidy. Thais entering Malaysia enjoy our fuel subsidy. Those who have four Mercedes cars also enjoy the subsidy.

"So we have to restructure the rationalisation of subsidy so that the targeted groups can enjoy the benefits," he said, adding he did not want to see the country's debt continue to rise.

Anwar said the country's economic policy now attracted more investors to invest in the country.

"Within two to three weeks, Geely (Chinese automobile manufacturer) will come to Tanjung Malim to invest RM10 billion there. They look at our economic policy as well as the efficiency of the state government," he said.

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