LETTER | Managing subsidies efficiently

LETTER | Prime Minister Anwar Ibrahim has rightly said that the "rationalisation of subsidies is important to ensure the people receive assistance while the country’s economy remains strong".

We are told that the subsidies allocated by the unity government to the people which include electricity, fuel and food are expected to exceed a whooping RM81 billion this year.

It is reassuring to hear that the government will implement rationalisation strategies to ensure the subsidies being rolled out are only for the deserving segment of the population, and without jeopardising the country’s economy.

Here are some fundamentals that Anwar's government should prioritise so that the RM81 billion subsidies do not end up as perennial crutches, or punch a bigger black hole in the nation's future.

Firstly, make the war on corruption the government's number one game plan.

To do so, beef up the anti-corruption initiatives including the agencies and instruments of battle against corruption.

That includes ensuring the Attorney-General’s Chambers (AGC) and our justice system are not compromised, or even perceived to be compromised.

Even royal pardons for crimes against citizens should not be toyed with, although we defend and respect the powers vested within the constitutional monarchy system.

Secondly, focus on our nation's human capital productivity.

Do not worry much about the private sector’s powerhouse of productivity. These have always been the turbines of growth in the nation.

Instead, tackle the civil service headcount. We are bloated beyond justification. Putrajaya must act as times are getting tougher, what more with this whooping RM81 billion subsidy.

Pensions for most government sector employees have to go. However, keep the pensions only for all those in the nation's security and safety sector such as the police, defence forces, firefighters and nurses.

EPF vs pension

Permanent employment guarantee - no matter what your failure on the job is, must cease.

If the private sector employees can make good with just their Employees Provident Fund (EPF) savings, why can't government staff too likewise?

Thirdly, declare war on profiteering business persons who hoard, cheat, short-change or steal from the rakyat.

These cheats are the ones primarily responsible for the repeat annual subsidy flops in the country.

That includes abandoning, with courage, the rent-seeking and currying favours from politicians that we pretend do not exist in the country.

The above three strategies will largely enable the unity government to make good the subsidy allocation and not jeopardise the nation's economy and financial health.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.