Home Web Specials 2011 Web Specials ‘Gov’t misled public over RM74bn subsidy burden’

‘Gov’t misled public over RM74bn subsidy burden’

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The federal government “misled” the public when the Performance, Management and Delivery Unit (Pemandu) stated it had footed a subsidy bill of RM74bn in 2010, an economist said.

Dr Subramaniam Pillay speaking on subsidies - Photograph: Malaysiakini

Speaking at the Selangor 2012 budget talks in Subang Jaya on 28 June 2011, Nottingham University visiting associate professor Subramaniam Pillay said 54 per cent of that bill was for education and health care, which is in fact government responsibility.

“All governments in the world subsidise different items for different people. But education and health are what economists call ‘public goods’ and are the responsibility of the government,” said Subramaniam who retired as Nottingham University Business School head last year.

“All developed countries around the world subsidise health care heavily, except the US, but (President Barack) Obama recently tabled a Health care Bill.”

Take the two big-ticket items away and the bill was only RM31.1bn, of which only food subsidies (RM3bn or about 2 per cent of the federal budget) went directly to the rakyat.

He said much of the RM23.7bn fuel and energy subsidies paid in 2010 had gone to gas subsidies to independent power producers.

“For infrastructure, all the subsidies go to (highway concessionaires) not because they need it but because they signed an agreement (with the government), which was stupid. It’s not a subsidy for the rakyat,” he said.

The Pemandu figure of RM74bn has been cited by the government to justify its subsidy cuts on petrol, natural gas, diesel and food items.

Source: Aidila Razak, Malaysiakini, 28 June 2011

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Bill Chua
Bill Chua
30 Sep 2012 11.19am

UMNO can spin because they owned the multi media. During election & bersih Rally, … hackers (jammed) up malaysiakini website, resulting to denial of services for days….

24 Oct 2011 2.33pm

Dr Subra is a great Guru in world economics and financial studies. I was his student in USM – he knows what he is talking about.

charlie chan
charlie chan
16 Aug 2011 6.17pm

since when malaysian had honorable leadders, from 1981 to 2011 – malaysia had billion dollar scandals – BMF <MAS, PKFZ, what a sad day for our nation , can malaysians trust BN anymore?

16 Aug 2011 3.10pm

Come to think of it, what is it that this government is doing or saying that can be trusted or has credibility. Malaysians has been had for so long that there remains the danger that it will become an accepted part of lives in the country. The bright spot is that apparently more and more Malaysians has recently awoken to this fact and that they are reacting positively to it.

Learning of another lie or another con job is no more shocking news. Now Malaysians are just waiting for the right time to start the process of eradicating our bad dreams of 50 long years.

16 Aug 2011 8.00am

As usual the deceitful and corrupted Umnoputra are trying to justify the wealth they have (lost/squandered) from the country. They have to falsely claim that huge amount of subsidies they have been giving to the people otherwise they will be unable to account for the amount they have (lost) and are going to continue to (lose) from the nation’s coffer. Sad to say even with borrowed money when the nation’s budget has been running in deficit for years. That is why the country with so much natural recourses will soon go bankrupt when the neighbor, Singapore, virtually with nothing, not even the foods they daily consume, have to be imported has trillion of ringgits just in their reserve. Where has the trillions we are supposed to have gone to ? You don’t need to be a chartered accountant to know that the deceitful and corrupted Umnoputra has got them (allegedly) staked up in foreign banks. Since they are looking after them ! That is why they have this NEP or should it be called the ‘Never Ending Policy’ first for 30 years and now is for… Read more »

The Humbug Times
15 Aug 2011 11.45pm

Without the Alternative Media the people would never know the this. We will never know the truth.

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