KUALA LUMPUR: Tan Sri Muhyiddin Yassin (PN-Pagoh) has urged the Malaysian government to postpone the subsidy rationalisation plan for petrol and diesel due to the financial strain faced by Malaysians, including rising living costs and tax hikes. The Perikatan Nasional chairman expressed concern that the recent two percentage point increase in the sales and services tax (SST) will result in higher prices across various sectors, impacting the majority of Malaysians.
He emphasized that the implementation of the subsidy rationalisation plan would likely lead to price hikes for all goods and services, furthering the financial burden on the population. “I’m requesting the government to carefully evaluate the timing of the petrol and diesel subsidy rationalisation plan, especially in light of the current economic challenges faced by the people,” stated Muhyiddin.
During his speech in Parliament on Tuesday (March 5), Muhyiddin suggested that it might be more prudent for the government to temporarily delay the subsidy rationalisation plans to mitigate the impact on the public. He acknowledged the significant fiscal challenges posed by extensive subsidies in Malaysia but questioned whether it is justifiable to proceed with these plans amidst the current economic climate.
Addressing the recent SST hike from 6% to 8% for taxable services, Muhyiddin also raised concerns about the broader scope of the tax, which now includes logistic services such as warehousing. He emphasized that the increased operational costs resulting from the SST expansion could lead to higher prices for goods and services, further straining consumers.
Without explicitly naming individuals, Muhyiddin criticized a deputy minister for suggesting that food traders should not raise prices despite the SST hikes, arguing that the effects of these tax increases would ripple throughout the supply chain, affecting prices across the board. He questioned the government’s understanding of the implications of such tax policies on the populace.
Turning his attention to the issue of local rice supply shortages, Muhyiddin called on Anwar, the chairman of the National Action Council on Cost of Living (Naccol) or the Agriculture and Food Security Minister, to provide a detailed explanation and plan for addressing this critical issue. He highlighted the importance of prompt government action in resolving the rice supply shortage to prevent further hardships for Malaysians.
Emphasizing the need for transparency and accountability in addressing key economic challenges, Muhyiddin underscored the government’s responsibility to prioritize the well-being of the people in its policy decisions. He warned that delays in resolving critical issues could reflect poorly on the government’s ability to manage important matters affecting the population.
