Consumers in Malaysia grappling with rising cost of living, GST
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While most consumers grappled with the escalating cost of living, the Malaysian government’s subsidy rationalisation programme and the impending introduction of the goods and services tax (GST) also took centre stage.
The government’s decision to reduce subsidies, effective 3 September 2013, was generally aimed at strengthening the nation’s economic position and ensuring that subsidies reached the target groups.
In 2014, the government allocated about MYR40.5 billion (USD11.61b) for its various subsidy schemes. Out of that amount, MYR21 billion went towards subsidising RON95 petrol, diesel and cooking gas or liquefied petroleum gas.
Questions & Answers
Q.What initiatives did the Malaysian government implement to address the economy and subsidies?
What initiatives did the Malaysian government implement to address the economy and subsidies?
The government initiated a subsidy rationalisation programme and introduced the goods and services tax (GST). Subsidies were reduced from 3 September 2013 to strengthen the economic position and ensure they reached specific groups.
Q.What was the government's primary goal in reducing subsidies?
What was the government's primary goal in reducing subsidies?
The main goal was to strengthen Malaysia's economic position. It also aimed to ensure that the remaining subsidies effectively reached their intended target groups within the population.
Q.How much did the Malaysian government allocate for subsidies in 2014 and what was the largest component?
How much did the Malaysian government allocate for subsidies in 2014 and what was the largest component?
In 2014, approximately MYR40.5 billion (USD11.61b) was allocated for various subsidy schemes. The largest portion, MYR21 billion, was directed towards RON95 petrol, diesel, and cooking gas.
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