Domestic Trade, Co-operatives and Consumerism Minister Datuk Hasan Malek told Malaysians to be prepared for another round of subsidies cut expected to be after tabling of 2013 budget later this month.
“The government’s intention is to strengthen the economy. We do not want to be like the United States, where its economy has been shut down,” he was quoted as saying by the New Straits Times yesterday.
“Sometimes certain actions need to be carried out. For me, the country’s interest is paramount,” he said.
The announcement was barely a month after government slashed fuel subsidies for RON95 petrol and diesel by 20 sen per litre, raising their pump prices to RM2.10 and RM2.00 respectively nationwide.
The fuel subsidies cut would translate into huge saving for the government, estimated to be at least RM3.3 billion annually.
Sugar subsidies were doubled in ahead of the general elections in 2012, which Reuters, believed a moved by Prime Minister Najib Razak to appease voters.
Sugar subsidies were raised at the start of 2012 to 54 sen Malaysian sen per kilo from 20 sen.