KUALA LUMPUR, Dec 31 — Malaysians will be entering 2014 with
the good news that the government will review the decision to rationalise
subsidy so that it can truly ease the burden of the target group.

Therefore, at least for the moment, Malaysians need not
worry on the prospect of incurring higher cost of living in 2014 due to the
rise in the price of goods and services.

The impending hike on electricity tariff and toll rates and
probably fuel in 2014 in the government’s efforts to rationalise subsidies has
raised concerns of the general public and interest groups who fear it will be
to much to bear.  

However, Deputy Prime Minister Tan Sri Muhyiddin Yassin on
the final hours of 2013 assured that the government subsidy would be looked at
in a more holistic manner in efforts to reduce the burden of the people,
especially the target group.

And just a day earlier Prime Minister Datuk Seri Najib Tun
Razak announced 11 cost cutting measures for the public sector effective Jan 1
2014, indicating the government is looking into other options in cutting costs.

Even if there was rise in prices, it was only proper that
the government establishes a special committee to monitor the prices so that
the people were not overly burdened, said Malaysian Muslim Consumer
Association’s (PPIM) Chief Activist Datuk Nadzim Johan.

He pointed out that the rising prices is a major issue to
the average consumer and could backfire on the government if not addressed
properly.

“Consumers are naturally sensitive to spikes in prices. We
can accept when the price of an item goes up but if it is a series of hikes it
may not be easy to swallow.

“So don’t be surprised if the people lose faith in the
government and the government is set to face repercussions when those with
vested interest capitalise on the price hike issues,” he told Bernama.

PUBLIC DEEPLY CONCERNED

According to Nadzim the rise in prices posed a big burden
especially for those in the middle and low income bracket.

“The people find that this is not the right time for price
hikes. Prices of sugar and fuel have gone up and we can accept that but how
about the increase in cable TV bill, and the bus and LRT fares, it would
further burden the people,” he added.

Meanwhile, Universiti Utara Malaysia’s (UUM) Politics and
International Relations analyst Md Shukri Shuib noted that the rasionalisation
exercise had to be carried out on the necessities and the living cost, and not
on the subsidies that might put to test the public’s emotional rationality.

DON’T SAVE, SPEND PRUDENTLY            

“The present government is only thinking of saving costs
while during Tun Dr Mahathir Mohamad’s administration though the country faced
economic crisis, he made sure the government spent instead of tightening its
belts. Because this is how the country could benefit numerous sectors that could
pay back to the national economy.

“The government should observe prudent spending instead of
tightening the belts. Even if the government is to save it could be done in
other areas instead of rationalising the subsidies for the people,” he said. —
Bernama