KUALA LUMPUR – Former Prime Minister, Datuk Seri Najib Razak recommended the government to hand out cash aid for the B40 and M40 group every quarter as long as the inflation rate is still high.
He said, the government has made some savings after abolishing the chicken and egg subsidies.
To increase the income to channel cash aid, he also encouraged the government to increase export duty and tax for the palm oil sector as there is a shortage of supply globally.
Besides that, the government may also increase the price of RON95 for 10 sen or 20 sen to reduce fuel subsidy and channel the savings to cash aid for the B40 and M40 people.
“The T20 people do not care and they will not be affected if the prices of food is high, but it will be a great pressure to the B40 and majority of the M40 group.
“The cost-of-living cash aid every quarter will relieve the pressure of food cost for the B40 and M40,” said Najib.
The proposal to increase the price of RON95 is made as the T20 group which used to purchase RON97 has not shifted to cheaper option.
The 65 percent drop in the sales of RON97 proved that most of the rich and those who can afford has changed to RON95 to enjoy government subsidy.
“It’s just like how the rich are taking food from the food bank. Today, the government subsidises about RM2.50 for each litre of RON95 which is retailed at RM2.05.
“It means, if a T20 fills 50 litres of RON95 for his luxury car, the government is giving RM125 in subsidy to the rich people each time they refuel. -MalaysiaGazette