Anwar eyes subsidies for low-income groups
KUALA LUMPUR: Malaysia is reviewing its government subsidies programme, aiming to direct money towards low-income groups, Prime Minister Anwar Ibrahim said on Sunday, prioritising the rising cost of living as he takes office at a time of slowing growth.
Government agencies have two weeks to review the implications of narrowing the subsidies, he told a news conference.
Malaysia offers subsidies to all citizens, with fuel and cooking oil accounting for the biggest expense. It also subsidises electricity, sugar and flour.
“Subsidies must be targeted, otherwise those subsidies are enjoyed not just by the low income group but also the wealthy,” said Anwar, who emerged as leader of the Southeast Asian nation ater a closely fought election last week.
Other incentives will be considered for industries that no longer benefit from subsidies, he said.
Anwar is carrying through the stance of the previous administration, which last month proposed a smaller budget, cuting subsidies due to rising commodities costs and the resulting impact on government coffers.
Malaysia is estimated to spend a record 77.7 billion ringgit ($17.4 billion) this year on subsidies.
Anwar said he will discuss cabinet appointments with his coalition partners in the next few days.
The 75-year-old was sworn on Thursday, capping a three-decade political journey from protege of veteran leader Mahathir Mohamad to protest leader, prisoner convicted of sodomy and opposition figurehead.
Anwar’s coalition, known as Pakatan Harapan, won the most seats in Saturday’s vote with 82, while Muhyiddin’s Perikatan Nasional bloc won 73. They needed 112 - a simple majority - to form a government.
He said in an interview before the election that he would seek “to emphasise governance and anti-corruption, and rid this country of racism and religious bigotry” if appointed premier.
Anwar vowed to fight corruption and focus on the economy, as well as promising to uphold Islam as the official religion of the multi-ethnic country and also special rights of ethnic Malays.
“Thank God, because we have seen a change that has awaited the people of Malaysia,” he told reporters at a late-evening address, hours ater he was sworn in by the constitutional monarch who appointed him ater an inconclusive election.
Anwar said on Friday he would have a smaller cabinet than those of previous administrations.
Investors have cheered his appointment, hoping Anwar would bring stability ater political uncertainty that saw three prime ministers in as many years. The focus is on the new government’s policy direction and cabinet appointments.