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26 May 2010

Subsidy cuts decision may take ‘months’

The Cabinet discussed proposals to cut costly subsidies today but did not talk about how and when cuts would be implemented and a firm decision is still some time away, a government source said.

“We still have to wait for the public feedback and further discuss how all these proposals can be adjusted and implemented. It may take some months,” said a government official who had been briefed on the cabinet’s subsidy discussions.

Malaysia’s government has mounted a publicity campaign to sway the public in favour of cutting subsidies for fuel, food, electricity and other staples.

According to government data, subsidies consumed 15.3 per cent of the federal government’s operating spending in 2009, hitting RM24.5 billion Malaysian as the country’s budget deficit soared to a 20-year high of 7 per cent of gross domestic product.

A government think tank charged with cutting subsidies has identified RM74 billion in subsidy payments annually, a figure that has been artificially boosted by including a wide range of social benefits, economists say.


Funny that when the Kuok Group owned the local sugar manufacturing operations the Govt refused to raise sugar prices inspite of numerous requests. "Controlled Pricing" was the reason given.

Barely a few months after UMNO cronies forced Kuok to sell their sugar business to them (Syed Bukhary), within a few weeks/months sugar prices were raised. "Subisidized and excessibe sugar consumption is suddenly bad for health and the economy!"

Have to get rid of all the UMNO goons / cronies ! They are driving legitimate and ethical investors like Kuok who benefit the economy and employ many regular hardworking "non-priviledged" M'sians out of the country - and chasing out potential new investments!

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