KUALA LUMPUR: Direct cash handouts to the targeted parties are better than blanket subsidies, said Prime Minister Datuk Seri Anwar Ibrahim.
During a special interview "Setahun Bersama Kerajaan Madani: Tiwikrama Perdana Menteri", he said present subsidies, which included basic necessities and fuel, were now enjoyed by 3.5 million foreigners as well as the top 10 per cent of the wealthy groups.
"The subsidies are benefitting the foreigners and the wealthiest group, and we want to avoid that," he added.
As the country attempts to address the issue of supply shortages, which impacts the pricing of goods, he said that the cash handouts known as Sumbangan Tunai Rahmah (STR) would serve as a "top up" assistance to the people.
"While we endeavour to manage (pricing), we are obligated to provide more STR aid. If the price rises, they can utilise the STR funds to meet the increased cost.
"We admit that cash transfers could ease the burden, cash aid is better than subsidy," he said today.
Anwar also said the M40 groups, who have frequently been overlooked, would benefit from the cash assistance.
He said that beginning next year, at least 10 million Malaysians would be benefitting from the targeted assistance and this included the M40 community.
"The RM100 eMadani is a test for it, and we will continue with that," he added.
He said that the increase in price of goods was largely due to the international crisis, which included the war between Russia and Ukraine and Israel's genocide against the Palestinians.
Aside from price control and direct monetary aid, he said that the Rahmah Sales programme would be maintained to assist people in obtaining basic necessities at lower-than-market prices.