PUTRAJAYA, Nov 26 — Prime Minister Datuk Seri Anwar Ibrahim provided assurances today that the Rahmah Cash Aid (STR) aid would be increased to cover Malaysians if the subsidy rationalisation affects the people, especially the poor.

Anwar, who is also Finance Minister, said that the floating of chicken prices had proven effective since it was implemented on Nov 1, and he was convinced that the rationalisation of subsidies would not affect 90 per cent of Malaysians.

The PKR president also said that the retraction of subsidies will involve only 10 per cent of the ‘super rich’ and the 3.5 million foreign nationals who have enjoyed government subsidies so far.

"The use of subsidies in 2022 totals RM77.3 billion, and covers petrol, diesel, liquified natural gas, cooking oil, flour and electricity, making it the highest total of subsidies in history.

"For 2023, subsidies will exceed RM81 billion if not tackled immediately. A targeted subsidy approach will be taken, but the government will have a more effective safety net for the poor,” he said.

Anwar said this in his keynote address at the 2023 PKR Annual National Congress, which was attended by 2,734 party delegates and 1,500 observers, along with Unity Government coalition party leaders and foreign diplomatic representatives at the Putrajaya International Convention Centre (PICC) here last night.

No government, Anwar said, could afford to continue providing subsidies, although he was also of the view that the retraction of subsidies should not burden the people.

A new approach taken by the Unity Government in steering the country was to ensure Malaysia could become a strong, great and respected country in the region and known globally as a country that could manage its economy well, he said.

Such efforts were elaborated upon in the Madani Economy: Empowering the People, the National Energy Transition Plan, the New Industrial Master Plan 2030, digital transformation and artificial intelligence and in both Madani Budgets and the 12th Malaysia Plan Mid-Term Review.

"We have placed policies to drive the (national) economy but it’s directed towards people’s main issues, that’s why the problems we want to solve first are dilapidated schools and clinics, and to eradicate hardcore poverty,” he said.

In addition, Anwar said focus will be given to people’s housing and the civil service, as well as empowering villages, rural areas, long houses and urban housing with allocations of RM50,000 to RM100,000.

"We are committed to changing the economic development approach so as not to sideline the people’s interests at lower levels. We have an agenda, not insulting slogans, that’s why we’re more confident,” he said.

He also shared that investors were gaining confidence in the Unity Government, and more companies from foreign countries like China and Germany investing in the country, on top of new investments from the 2023 Asia Pacific Economic Cooperation (Apec) Economic Leaders meeting that he attended recently.

"Until Sept 2023, we have managed to attract and approve investments worth RM132.6 billion. All this has taken place in uncertain economic conditions and (the Unity Government) took over the country with a RM1.5 trillion debt and a ballooning 5.6 per cent deficit,” he added. — Bernama