According to Rafizi Ramli, the government plans to launch the targeted RON95 subsidy programme in the second half of 2024 in order to direct resources to those who need it most. The Economy Minister pointed out that the current situation, where the top 20 (T20) income group receives 53% of blanket fuel subsidies, is not sustainable or equitable.
He emphasized that the government’s objective is to make the fiscal paradigm more expansive, particularly because the public finances have consistently run a fiscal deficit of more than 5.0% for three years. Rafizi expressed these views during his keynote address at the National Economic Outlook Conference (NEOC) on November 27.
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Rafizi stated that implementing the subsidy retargeting programme by the end of 2024 would immediately lead to a better fiscal position for the country. He also announced that the Economy Ministry would present the Progressive Wage Policy to Parliament in three days to address the issue of low wages in Malaysia with the aim of making wage growth productivity-driven through upskilling efforts.
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Rafizi sees the implementation of the subsidy retargeting programme as a means to create a better fiscal position for Malaysia. Additionally, he plans to present the Progressive Wage Policy to Parliament to address the issue of low wages by focusing on productivity-driven wage growth through upskilling efforts.
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He further emphasized the need to focus on creating a greater proportion of technological-frontier jobs, especially in the five HGHV (high growth, high value) sectors identified in the mid-term review. Rafizi finds it concerning that the median wage is only RM11 above the poverty line. – Bernama
