KUALA LUMPUR: People's burden from rising cost of living could be eased if the government introduces fair market price in line with the current condition, according to Malaysian Inclusive Development and Advancement Institute of Universiti Kebangsaan Malaysia director Prof Tan Sri Noor Azlan Ghazali.
Citing the current subsidy issue, Noor Azlan said the situation could have been better managed if the government had properly planned earlier.
"If you want to get fit, you don't suddenly lift 100 kilogrammes (kg). You need to do it steadily. The same principle applies to subsidy rationalisation.
"The government should impose a gradual manner rather than a more drastic kind of thing. The government must set a goal and be committed to going to that goal. The pricing needs to be re-looked at," he told reporters at the press conference in conjunction with Permodalan Nasional Bhd (PNB) Knowledge Forum 2024.
Noor Azlan emphasised that timely and steady adjustments could prevent such adverse reactions and help manage public expectations.
The situation needs to change, and the public must understand the government's financial constraints and the savings that can be achieved through the implementation of subsidy rationalisation.
"The savings obtained by the government could be channelled into more critical development expenditures such as the education and health sectors.
"This situation needs to be understood by the public because, whether realised or not, a portion of every litre of petrol paid for by consumers is currently subsidised by the government.
"Subsidy rationalisation will provide fair prices. Consumers will pay the actual price, and the government will have savings for development," he added.
Themed "Economic Complexity: Navigating the Threads of Economic Relatedness", PNB Knowledge 2024 forum explore and delve on the importance of Economic Complexity in Malaysia, indicating the overall needs and economic well-being of the nation.