Government will announce details of subsidy rationalization mechanism – Rafizi

Government will announce details of subsidy rationalization mechanism – Rafizi

KUALA LUMPUR: The government will announce details of the subsidy rationalization plan, including its criteria and implications, soon, said Minister of Economy Rafizi Ramli. He emphasized that if the government’s subsidy rationalization policy succeeds, the savings could be redirected to social assistance programs that have the potential to enhance poverty reduction and generate fiscal savings.

“I know many have been asking about the timing for us to introduce this mechanism, however, prioritizing coordination and preparation for such a major step is necessary,” he said during his speech at the launch of the 29th Malaysia Economic Monitor by the World Bank titled Bamboo Shoots: Strengthening Foundation Skills here, on Thursday.

He said 11.6 million individuals or 52.6 percent of Malaysians aged 18 and above have registered with the Unified Database (PADU). “This provides sufficient capacity to finally implement subsidy rationalization and transition from a comprehensive regressive subsidy model.

“At this granular data level, we can minimize exceptions and summaries errors and ensure the fair distribution of subsidies to those who need them most,” he said.

Meanwhile, the Malaysia Economic Monitor report by the World Bank emphasizes the long-term growth prospects of Malaysia, which are heavily dependent on human capital strengthening by improving learning outcomes for children.

The report makes four recommendations to enhance learning outcomes including ensuring all children benefit from high-quality preschool education and enter primary school ready to learn, as well as increasing access to early childhood education and its quality for low-income households.

“Malaysia also needs to carefully measure student learning outcomes and benchmark them against international standards as well as comprehensively measure teacher performance.

“(Additionally) effective teacher training programs need to be provided, along with policies that consider teachers’ experiences and needs, thereby ensuring effectiveness and sustainability,” according to the report.

– Agency

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