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Saturday, 29 May 2010

Sabah’s poor to get poorer with subsidy cuts

By Queville To - Free Malaysia Today,

KOTA KINABALU: Sabah PKR deputy chief Christina Liew urged the government to first stop the massive wastage of public funds before talking about cutting back on subsidies.
“The government says this (cutting down on subsidies) is the only way to save the country from becoming bankrupt.
“The government should curb corruption and wastage which is so rampant and blatant as reported annually by the Auditor-General.
"Don’t pass the burden to the rakyat. The coffers will be empty soon due to mismanagement,” she said yesterday.
Liew said that the government coffers will continue to haemorrhage due to lack of prudent spending, transparency and accountability.
She was responding to the warning by Minister in the Prime Minister’s Department Idris Jala on Thursday that Malaysia would be bankrupt by 2019 if it does not cut subsidies and rein in borrowing.
He said that Malaysia's debt would rise to 100% of GDP by 2019 from the current 54% if it did not cut subsidies.
However, Liew said that while Idris may be right in his argument, the government must remember that removing the subsidies will hit the poor in Sabah the hardest as they are living below the poverty line.
She also criticised the proposed cash rebates to lessen the burden consumers are bound to feel with the removal of subsidies.
She said the cash rebate is negligible, given the increased costs of fuel and staples.
“I urge government to give special consideration to the hardcore poor, especially in Sabah; otherwise they won’t be able to afford even a loaf of bread soon as the costs of flour, transport, cooking oil, and electricity to make the bread soar.”

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