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Targeted subsidies to be implemented when economic situation permits, Tengku Zafrul says

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Finance Minister Tengku Zafrul Abdul Aziz says targeted subsidies will only be implemented after the rate of inflation is properly controlled. – The Malaysian Insight file pic, August 8, 2022.

TARGETED subsidies will only be implemented when the economic situation permits – that is, after the rate of inflation is properly controlled, Finance Minister Tengku Zafrul Abdul Aziz said.

He said introducing targeted subsidies in the upcoming Budget 2023 would be inappropriate in a high global inflation environment.

“At the same time, we also need to understand that non-targeted subsidies in the long-term will not benefit the country’s economic growth.

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“We are still in the recovery process and this matter needs to be discussed,” he said in the Inklusif talk show broadcast by RTM tonight.

He said structural reforms would be implemented to help the vulnerable, if the economic situation next year permits, the global geopolitical conflicts ease and the country’s economic growth stabilises.

“Through these structural reforms, we will introduce new policies to help those who are really in need, and not via blanket (subsidies),” he added. – Bernama, August 8, 2022.


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