MCA president Datuk Seri Dr Wee Ka Siong (pic) has called for the proposed targeted subsidies to be accessible to those who are eligible and in need.
In videos shared on social media, Dr Wee expressed concerns about the effectiveness of the three methods proposed by Economy Minister Rafizi Ramli and urged the government to ensure that no eligible individuals are excluded from the subsidy mechanism.
Rafizi has put forward three methods for the proposed targeted subsidies mechanism.
“First is based on net disposable income, but it would vary between individuals due to their differences in financial commitments,” he explained.
“Second is based on social protection, such as the Employees Provident Fund (EPF) or Social Security Organisation (Perkeso) contribution, but not all employees, such as those in rural areas, contribute to Perkeso. The third is through cash payments such as topping up of the Rahmah Cash Aid (STR),” he said in the video.
Dr Wee expressed skepticism about the effectiveness of these methods and suggested looking into the individual’s lifestyle instead.
He proposed assessing the threshold based on the type or value of the vehicle an individual owns.
“The government may introduce a list of affordable cars, and those with luxury cars will be exempted from the support,” he suggested.
“Then those with higher financial commitments, such as family expenses, can opt for more affordable vehicles, and these would be the groups that should benefit from the aid,” he added.
Economy Minister Rafizi Ramli announced that the Cabinet will discuss and decide on the targeted subsidy mechanism this month, with implementation expected after March 2024.
Rafizi further stated that the implementation of targeted subsidies would take place after the government’s Central Database System (Padu) is made accessible to the public, allowing households to review and verify their eligibility for the subsidies in the system.
