KUALA LUMPUR: The government will intensify enforcement efforts to prevent any unjustified price hikes, following the recent implementation of diesel subsidy rationalisation.
Treasury secretary-general Datuk Johan Mahmood Merican said the rationalisation aims to combat internal smuggling and cross-border issues, ensuring it is targeted effectively to benefit the people as a whole.
"Therefore, it is important to look into strengthening the enforcement so that businesses do not increase prices as it is completely unrelated to the scale of rationalisation being implemented.
"I think this is certainly one area that the government will have to look out for," he said during a panel session at Bank Negara Malaysia's Sasana Symposium 2024 here today.
Johan also said the government has implemented a phased approach to subsidy rationalisation, beginning with electricity tariff adjustments in 2022.
This caused prices for essential items such as chicken, water and diesel to be affected.
However, he noted that the phased pricing structure for electricity tariffs, where higher consumption incurs higher tariffs, is considered fair.
Johan said the government and policymakers need to look into the behaviour of the people in terms of providing assistance and aid for them.
This will help the government understand how individuals utilise and respond to support provided by the government, ensuring that such assistance is effective and addresses the intended needs of the recipients.
Speaking in the same panel session, former deputy minister of international trade and industry Dr Ong Kian Ming expressed optimism about Malaysia's economy, which he believes is on a positive trajectory.
He said this is driven by geopolitical advantages and macroeconomic initiatives such as the New Industrial Master Plan (NIMP) 2030 and the National Energy Transition Roadmap (NETR).
"This includes Malaysia's cohesive efforts, as seen in the initiatives by the Investment, Trade and Industry Ministry, among other ministries, in attracting and localising investments.
"This is despite challenges in institutional reform, including labour reform, government expenditures and issues related to procurement and subsidies," he added.
Nevertheless, Ong said there is a need for improved consistency and alignment within the broader ecosystem, including institutions like Bank Negara Malaysia and the Securities Commission Malaysia.
He said this aligns with the Prime Minister's aspirations as well as the Finance Ministry's direction.