Proposed Subsidy Rationalisation By Pemandu

May 27, 2010 21:00 PM

KUALA LUMPUR, May 27 (Bernama) -- Highlights of subsidy rationalisation proposal, mitigation measures and savings unveiled by Minister in the Prime Minister's Department Datuk Seri Idris Jala Thursday:

2009 SUBSIDY

*Total RM74 billion or RM12,900 per household

*Breakdown: Social RM42.8 billion, fuel RM23.5 billion, infrastructure RM4.8 billion, food (RM3.4 billion);

FUEL

*Petrol price will be gradually increased by 15 sen/litre, diesel price by 10 sen/litre, LPG by 10 per cent per litre by the middle of the year. Thereafter 10 sen per litre every 6 months and 20 per cent for LPG every year;

*Cash rebates of RM54 per person per motorbike (less than 250cc) and RM126 per person per car (less than 1,000 cc) totalling RM526 million;

*Government savings: RM44.9 billion over 5 years;

GAS

*Gas price (power) to increase by RM4.65/MMBTU

*Gas price (non power) to increase by RM2.52/MMBTU

*Electricity tariff by RM0.024/kWh;

Thereafter, gas price (power and non-power) to increase RM3/MMBTU and electricity tariff by RM0.016/kWh every six months;

*New electricity tariff will not impact 56 percent of consumers

*Government savings: RM35.9 billion over 5 years;

TOLL RATES

*Increase as per concession agreement applicable only for toll highways which have alternative routes;

*20 per cent discount for toll users upon next reload, applicable for more than 80 transactions per month; to cost government RM60 million;

*Government savings: RM3.7 billion over 5 years;

FOOD

*Sugar price to be increased 20 sen/kg every six months until 2012

*Flour price to be increased 20 sen/kg in 2010 and 25 sen/kg in 2011

*Cooking oil to be increased 15 per cent per kg in 2010 and 15 per cent per kg in 2011 and thereafter, 5 per cent per kg every year until January 2014;

*Cash rebate of RM20 to Mykad/MyKid card holders through post-offices in first year, to cost government RM560 million;

*In second year, discount through MyKasih Card for incomes below certain threshold) and use designated shops such as SaveMore, petrol stations at high poverty, to cost government RM200 milion per year;

*Government savings: RM8.5 billion over 5 years.

REDUCE WASTAGES & EFFICIENCIES

*Agriculture: usage of targeted fertilisers.

*Education: remove subsidies for foreign students and re-target subsidies for poor families.

*Fisheries: increase diesel price, increase incentives for fish caught from 10 sen to 50 sen/kg, maintain RM200 monthly allowance.

*Health: increase outpatient fees from RM1 to RM3, full subsidy for poor to continue;

*Wastages and efficiencies to be reduced by RM16.3 billion over 5 years;

TOTAL SAVINGS

*RM103 billion over five years;

*RM2.976 billion (2010), RM14.118 billion (2011); RM21.104 billion (2012);

*RM29.51 billion (2013), RM35.542 billion (2014).

POLL

*191 Malaysians polled via SMS, forms and online.

*61 per cent support subsidy rationalisation.

*66 per cent want subsidies reduced in 3-5 yrs.

-- BERNAMA