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Muhyiddin Yassin says almost 50% of government subsidies are used by those who are more well-to-do, while the B40 group only takes up 20% of the provided aid. – The Malaysian Insight file pic, July 30, 2022.

THE government can save RM20 billion a year by implementing the targeted subsidy scheme, said National Recovery Council (NRC) chairman Muhyiddin Yassin. 

According to Muhyiddin, at the moment, only 20% of the subsidy provided by the government is being taken up by the B40 group, while the rest are enjoyed by groups that don’t deserve it.

“Almost 50% of government subsidies are used by people in the well-to-do category – those with big vehicles and so on.

“So, I think the basis for the government to make a decision (on the targeted subsidy scheme) is very strong for a higher percentage to reach the target group (B40),” he said after a meeting between NRC and Terengganu fishermen at the Chendering Fisheries Development Authority port in Kuala Terengganu today.

Also present were Agriculture and Food Industries Minister Ronald Kiandee and state Agriculture, Food Industries, Plantations, Commodities and Rural Development Committee chairman Azman Ibrahim.

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At the ceremony, Muhyiddin also presented cheques totalling RM20 million from the Agriculture and Food Industries Ministry to the Terengganu Fishermen Association (Penentu). 

It includes Projek Khas Perumahan Nelayan aid, totalling RM14.2 million, living allowance (RM4.2 million), and Penentu special aid (RM1.6 million). 

Muhyiddin said the savings from the targeted subsidy scheme can be channelled to the B40 group, including farmers and fishermen who are badly affected by the rising cost of living.

However, the mechanism for implementing the scheme needs to be fine-tuned by the government to ensure subsidies reach the targeted group, he added.

“We are discussing this proposal at the NRC level and it will be taken to the cabinet at the right time,” he said. – Bernama, July 30, 2022.


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