BUTTERWORTH: High-income earners, who have been enjoying government subsidies on consumer products and services, may soon find the subsidies reduced or withdrawn.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the move was among several strategies that the Government was considering to curb inflation.
“We are looking at better managing our resources, which includes the provision of subsidies, in a more effective way.
“We do not want to waste our subsidies on those who do not need them,” he said after presenting aid to 134 victims of Thursday’s storm in Tasek Gelugor here on Sunday.
Nor Mohamed said the drastic increase in global prices of commodities in the last three years had resulted in strong political implications in many countries, including Malaysia.
He said the country should move away from an economy with low-wage earners to a high-income, knowledge-based economy.
“In developed countries like the United States, only about 16% of a family’s income is spent on food, while in poorer countries like Nigeria, it could go up to 73%.
“In Malaysia, there are low income families that spend half of their income on food,” he said.
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