Subsidies in Malaysia: How much does the government pay?
AP Photo, Vincent Thian
As many ordinary Malaysians (especially in urban areas) will tell (and swear to) you, living in Malaysia isn't cheap by any means. The rising cost of living continues to be an inestimably major issue in Malaysian politics, regularly evoked by opposition political parties to attack the ruling government.
In this article, we look at how much the government actually contributes to making 'basic necessities' (such as fuel and food items) cheaper for citizens. Is the government paying too much, too little, or just the right amount? You decide and you tell us.
>>>CLICK TO CONTINUE>>> Go to the following pages to see how much taxpayer ringgit is allocated to each of the major subsidized items from fuel to flour. (Figures taken from Prime Minister Najib Razak's recent Budget 2012speech)
Explanation of the terms
Actual price = Unsubsidised market price of the said item
You pay = How much you (the public) pays for the said item after the subsidy
Government pays = The portion of the actual price (in ringgit) 'swallowed' or subsidised by the government
Subsidy percentage = Percentage of the item's actual price subsidised by the government
I agree that subsidy should be given, but this cannot be sustained any longer. If the government does opt to reduce the price of petrol, then Malaysia would no doubt experience higher and higher inflation in the long run. However:
First of all we all live in Malaysia and everyone should enjoy the fruits of the country.
Subsidies are fine for the basic items for everyone.
The 32 billion is no sweat for the country if we spend wisely on things that matter instead o****nseaworthy submarines, paying for hand bags, spending money on sex, wasting money on alleged sex cases, cronyism, corruption and worst of all for inefficiencies and poor performance of our ministers and third raters!
Hence when you ask this question, my simple answer is subsidies are really pennies compared to the ****ve mentioned and as such please lah dont try to make us look stupid!
****: hey...how r u guys? hows ur country n the ppl doing..ok ar?
msian gov: we doing are great! we are the best management team! we run the country so well till the people can't even afford their basic needs.
****: oh really? then how are the rakyat surviving?
msian gov: our rakyat are so dumb...easy to con. we give subsidies for some of the goods which are considered as their basic needs.
****: subsidies? whoaa....so generous ar u guys!...good!..good!
msian gov: nah! we tax them for everythin n then probably use 1/4 of that money to give subsidies on some of the goods. n then we will highlight to them that "WE" the gov is helping the rakyat to buy their basic needs.
****: ooo...not bad. smart ar u guys..so what ****ut the balance 3/4?
msian gov: what else...we enjoy lar...buy bungalow, open business for my family, vacation, etc...etc...
****: whoaa! malaysi****leh lar!
Najib's budget promised to maintain subsidies on ****el and food items that his government had earlier moved to scale back in a deficit-reduction drive.The subsidy cuts had caused a ****rther spike in costs of transport and essential commodities that had already risen along with surging world prices. Najib said government workers would get larger-than-usual pay rises, all fees in public schools would be ****lished and the government would adjust property transaction taxes in a bid to curb market speculation. Various tax breaks and other incentives would be extended in a range of industries to stoke both domestic and foreign investment, he added. Apart from that, Msia's e****my grew 7.2 percent in 2010 but slowed to 4.0 percent in the second quarter of this year. At last, Budget 2012 is pre-election budget towards voters. It seems the gov't promise everybody everything on earth, bu****'s completely irresponsible
Why does the government subsidies? B'cos our nation is getting poorer and we need to pay higher for imports.
We are an oil producing countr****ealy our petrol is free plus the processing cost and our palm oil is grown here so the cost should add up to be cheaper.
But being a poor nation our exchange rate is weak and we buy expensive.
Papua New Guinea is even richer then us now! Their 1 Kina is worth RM1.55.
We sell oil, palm oil, rubber and timber and yet we are getting poorer. The current government is not doing the right thing.Even now Federal Land under FELDA needs to
be sold by listing it. !!!!!????
i think govt has no right to boast on the subsidy....the money belongs to ppl.... the resources on this land belongs to his ppl..... basically govt saying shut up and don't ask so much...but how to kp quite..... when tax payers money wasted for new istana for king..is it really necessary...what is the contribution of royal family e****mically for the country.....question mark????? when the money could hv channeled to all subsidy for ppl and ease our burden..... govt need to realize ppl are not stupid...
Yes, we all want to keep all the money we made through blood and sweat, buy things cheap, have a stable life. It's never easy to run a govt. You wanted the job, do it, and do it well, and stop whining ****ut how the RAKYAT is not grate****l for your efforts.
we pay tax for wat??.in malaysia we hav everytg,sugar,petrol,diesel,oil,milk, n many more.
why in brunei te petro is cheap,why cant we get te same since both country manufacturing ****el.
i don understand wat n hw gov subsidies petrol,diesel,sugar,milk??? since everyt****ade in malaysia.how can a goverment run te show if its going like this
Sorry to say this: Are we still 1 Malaysia? The goods for Sabah is definetly different price. I am from Semporna, Sabah, Malaysia.
Selling price here in Semporna:
Sugar: Rm 2.50/1kg
Cooking Oil: Rm 2.75 or even more/1kg
Flour: Rm 1.60 - Rm 1.80 or higher/ 1kg
Diesel: Rm 1.80/liter (standard)
Cooking Gas: Rm27 - 28/tank
It is not standarized due to the fact of different region and transportation fee, So you can't just ****n article saying Govt subsidized that amount. We are here paying almost the same or higher as non-subsidies.
For your information as well, we are always out of stock. One momen**** can be flour, another day, it can be sugar or cooking oil. We, Sabah as one of the palm oil manufacturer, couldn't even ****lfill our own local demand.
Right now at the moment, I am typing, we are out of packet sugar. Sometime we don't get supply from agent due to the fact, they are sending to the goods to local Tawau shop to save transportation cost while for Semporna, agent need to drive 2 hours up to send the goods, therefore at certain time, we who live in Semporna, need to drive down to get basic goods.
This is a frustration situation happening here!
In a perfect work we wouldn't need subsidies because costs of goods and services would have minimal or no tax, there would be no profiteering, nor would there be speculative driven pricing or derivative pricing let alone ****tures pricing.
I would settle for minimal or no subsidies on certain items e.g. sugar and even pe****nd diesel if Govt would subsidise ****el costs for the transport and public transport industry and to bring down all forms of taxes on goods and services to zero or just ****ve. Bring in the GST but cap it at 3% max with no room for review.
Perhaps it would be appropriate to list down subsidies given by other countries within the region as a comparison to really appreciate whether or not our government has done or given enough. Given the opportunity, everyone would want things for free. And human nature as it is, one will never be satisfied with what they have. Add greed, laziness and the "subsidy mentality" to that, no amount of subsidy will suffice.
So, it will never be too much. Perhaps it will be just enough for a small section of the populace (that probably too because they are pro establishment). And the majority of the rakyat will say its too little. Obvious isn'****? Then, may be, we should try living in Somalia ... you get bullets for free over there.!