KUALA LUMPUR, July 22 — Subsidy rationalisations are part of the government’s initiative to lower annual borrowing to RM86 billion, from RM93 billion in 2023 and RM100 billion in 2022, said Prime Minister Datuk Seri Anwar Ibrahim.
He said to achieve the target, the government has to ensure prudent spending, avoid waste, and only borrow when necessary for development purposes.
“Subsidies rationalisation is a comprehensive effort that covers a broader spectrum (to help reduce the government’s yearly borrowing).
“Other efforts include tackling corruption, and (undertaking a) more efficient manner of enforcing the law and taxation efforts,” Anwar, who is also Finance Minister, told reporters after delivering his keynote address at the launch of the National Tax Conference 2024 here today.
Also present were Deputy Finance Minister Lim Hui Ying, Treasury secretary-general Datuk Johan Mahmood Merican, and Inland Revenue Board Malaysia chief executive officer Datuk Abu Tariq Jamaluddin.
Anwar said the government is mitigating diesel rationalisation and the issue of implementing targeted RON95 subsidies have not been brought up.
“(The RON95 subsidy rationalisation) was not raised as we are dealing with the diesel subsidies, so providing proper details is vital as this issue could be twisted.
“But if subsidy rationalisation is not implemented, the country’s revenue will not increase, debt will increase instead,” Anwar said, adding that borrowing is necessary to partly pay for outstanding debt.
He noted that the government does not want to burden the people, and if there were problems with the diesel subsidy, the government should be informed.
Earlier in his speech, Anwar said the government’s current debt-to-gross domestic product (GDP) ratio was at 64 per cent.
“That is too high, it has exceeded the appropriate limit,” said Anwar.
He said if this irresponsible policy continues, Malaysia will not achieve the level of investment the country is receiving now, such as the projected GDP growth in the second quarter of 2024, which is 5.8 per cent.
— Bernama
