Despite the good signs, Mr Anwar himself acknowledged in an Oct 10 article on X that there was “much place” for development in the government’s fiscal leadership and performance.
For starters, the state is seeking to control its RM1.5 trillion debts, and is well on its way to reducing its macroeconomic gap to 4.3 per cent this year, with an eye on 3 per share by 2026.
In an effort to reduce spending on grants and social support by RM11.5 billion, a goal set out in Budget 2024, the state has also adjusted grants for meat and power.
The World Bank warned that further rationalization was required in addition to methods to lessen the impact on inflation and vulnerable groups, despite the World Bank’s warning in its October record that these initiatives were expected to decrease subvention investing.
After the effects of the walk on diesel, Malaysia-based economist Shankaran Nambiar reported to CNA that Mr. Anwar might be more careful about rationalizing the use of gasoline subsidies.
It makes sense for the government to pause before introducing the fuel subsidy rationalization, which he said, because the removal of oil subsidies was not liked by large segments of society.
” It might be mentioned ( at Friday’s budget ), but he’ll want to gauge sentiment and wait-and-see before actually implementing”.
SLASHING Diesel Grants
Economy Minister Rafizi Ramli stated in November last year that the authorities would implement a targeted gasoline rebate program in the second quarter of 2024, but authorities have since been largely silent on any kind of timeline for execution.
Mohd Afzanizam Abdul Rashid, the head of Bank Muamalat Malaysia, stated that Mr. Anwar would provide more information on the move on Friday, including a timeline and instructions on how to qualify for cash assistance for those who are available.
According to Dr. Afzanizam, some fuel vehicle owners who might have been eligible for assistance were misled when the sudden announcement to eliminate subsidies suddenly saw a rise in diesel prices instantaneously.
The government could use the fuel show as a “template” to utilize the lessons learned in its diesel implementation, making the practice more” smooth” for those who will be affected, he said.
” That’s very important, because the moment you decide to cut subsidies, the price of RON95 will go up, and typically, other prices of goods and services will follow suit”, he added.
Their purchasing power will be impacted if they are eligible for cash transfers but do n’t receive them in time.