COMMENT | Remove subsidies that benefit the rich

COMMENT | At some point, the government needs to start lowering the large subsidy bill as oil and commodity prices have skyrocketed. But to do so today with a bang and in one go will introduce tremendous price increases which will burden the rakyat.

Thus, the solution to this problem has to be a delicate one - a gradual structural change instead of a huge one which moves towards direct grants for the poorest in the community while cutting subsidies completely for those who can afford it and who tend to be the major consumers.

This will also ensure that by pricing essential commodities such as oil and gas, cooking oil and other foodstuff and utilities such as electricity and water closer to market rates, wastage can be avoided and conservation encouraged.

By moving in this direction, the government can begin to pay more than lip service to the oft-repeated mantra of sustainable development with due consideration to the environment and instead take meaningful steps towards this goal. It can be done.

In a recent interview, finance minister Tengku Zafrul Abdul Aziz revealed that subsidies for the whole of this year are expected to hit a ginormous RM80 billion compared to the budgeted figure of RM31 billion - a difference of RM49 billion. It exceeds the total development expenditure of RM76 billion for this year!

However, since we are net exporters of energy, it is not so...