Subsidy cuts not enough to prevent wastage, says Ku Li
By Shazwan Mustafa Kamal, The Malaysian Insider
“Will the government cut down on expenditures from other areas? Leakages are costing more than subsidies. Why is the government not looking into this?” Tengku Razaleigh told The Malaysian Insider in an exclusive interview here.
KUALA LUMPUR, July 18 — Tengku Razaleigh Hamzah has warned the Najib Administration that the latest subsidy cuts are not enough to stabilise the country’s delicate economic situation, saying the prime minister has yet to address corruption and profligate projects.
The former finance minister chided the government for not doing enough to prevent further outflow of money from corruption, as well as still subsidising organisations that use up taxpayers’ money, echoing a refrain brought up by Pakatan Rakyat (PR) leaders.
“Is the government happy with the state of affairs in the country? A Merdeka Center survey found that 70 percent of Malaysians were not happy (with the country’s economic conditions).
“Will the government cut down on expenditures from other areas? Leakages are costing more than subsidies. Why is the government not looking into this?” Tengku Razaleigh told The Malaysian Insider in an exclusive interview here.
The Kelantan prince noted that the government was still subsidising giant organisations that are making huge profits because they are still enjoying subsidies despite the “subsidy rationalisation” on fuel and sugar last Thursday.
“What about the subsidies that are given to organisations that take lumpy amounts of money? The IPPs (independent power producers), toll concessionaires the government is still subsidising them. Why are these subsidies not cut?
“It is costing much more money than cutting subsidies of fuel and sugar,” said Tengku Razaleigh.
The Gua Musang MP also claimed that the government was not doing enough to combat corruption in the government service, which he said was the “main cause” of leakages of national funds.
“Is the government satisfied with the fight against corruption? The bulk of society still have to bear the costs (of corruption)… there are so many other things which still needed to be addressed. For example tenders. It has to be done in a strict manner so that there will be no wastages,” quipped Tengku Razaleigh.
But the former Umno vice-president acknowledged the fact that subsidy cuts were part and parcel of necessary steps to stabilise the country’s financial situation.
“It is good that the government decided finally to cut down subsidies. Subsidies are just not sustainable, you cannot go on like this.
“Undoubtedly we must help the poor… but you cannot continue to help the handicapped to purportedly become handicapped.
“Subsidy cuts are welcome but it must be done in a gradual manner so that it would not burden the poor,” said Tengku Razaleigh.
But the politician, affectionately known as Ku Li, cautioned Prime Minister Datuk Seri Najib Razak of the possible “psychological effects” of the subsidy cuts.
“There will be psychological effects on the prices of products which are in need of the items which have been subsidised like bread and tea..these prices will escalate. Its a reactive effect,” he said.
