Too soon to decide on targeted subsidies, says Tengku Zafrul

Too soon to decide on targeted subsidies, says Tengku Zafrul

The decision will be made only when the economy permits, after inflation can be controlled, the finance minister says.

Finance minister Tengku Zafrul Aziz says non-targeted subsidies will not benefit economic growth in the long-term. (Bernama pic)
KUALA LUMPUR:
The decision to introduce targeted subsidies will only be made when the economic situation permits after the rate of inflation can be properly controlled, finance minister Tengku Zafrul Aziz said.

He said it was too early to make a decision to introduce targeted subsidies in the coming 2023 federal budget as it would be inappropriate to do so at a time of high global inflation.

“We also need to understand that non-targeted subsidies in the long-term will not benefit the country’s economic growth.

“We are still in the recovery process and this matter needs to be discussed in the Cabinet as to whether targeted subsidies will be introduced in the 2023 Budget,” he said in an RTM talk show.

He said structural reforms would be implemented to help the vulnerable if the economic situation in 2023 permits, the global geopolitical conflict eases and the country’s economic growth stabilises.

“Through these structural reforms, we will introduce new policies to help those who are really in need, and not via blanket (subsidies),” he added.

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