Targeted subsidy needs to look into commitments of individuals as well

PETALING JAYA: MCA president Datuk Seri Dr Wee Ka Siong (pic) has urged that the proposed targeted subsidies mechanism reach out to those in need who are eligible.

In videos posted on social media, Dr Wee said the government needs to study the system to ensure nobody is left out and added that the three methods proposed by Economy Minister Rafizi Ramli may not be fully effective.

“Can we help those who need this subsidy? If so, we must consider whether this method is correct. I am worried that some who are eligible will be left out from the list of recipients,” said Dr Wee.

Rafizi has proposed three methods for the proposed mechanism of targeted subsidies.

“First is based on net disposable income, but it would vary between individuals due to their differences in financial commitments.

“Second is based on social protection, such as the Employees Provident Fund (EPF) or Social Security Organisation (Perkeso) contribution, but not all employees, such as those in rural areas, contribute to Perkeso. The third is through cash payments such as topping up of the Rahmah Cash Aid (STR),” he said in the video.

Wee said he was sceptical of their effectiveness but proposed to look into the individual’s lifestyle instead.

“All three have nothing to do with the type or value of the vehicle being used, and I believe this is an important threshold to use as a parameter.

“I propose that we consider the threshold based on the type or value of the vehicle.

“The government may introduce a list of affordable cars, and those with luxury cars will be exempted from the support.

“Then those with higher financial commitments, such as family expenses, can opt for more affordable vehicles, and these would be the groups that should benefit from the aid,” he said.

On Monday (Nov 6), Economy Minister Rafizi Ramli said that the Cabinet will discuss and decide this month on the targeted subsidy mechanism, which is expected to be implemented after March 2024.

Rafizi said the targeted subsidies would only be implemented after the government’s Central Database System (Padu) is open to the public. Data on whether households qualify for the subsidies can be reviewed and verified in this system.