PUTRAJAYA: A study by the National Economic Action Council has found that at least 40 per cent of government subsidies are benefitting the rich or the T20 group.
Speaking to reporters after chairing the monthly council (NEAC) meeting today, Prime Minister Datuk Seri Anwar Ibrahim said the government was working on providing subsidies to those who truly needed them rather than offering them to everyone.
"We must save in areas which we can. Based on a study by the financial advisors, at least 40 per cent of government subsidies are used by the rich and T20 group.
"While we are still providing subsidies to empower the rakyat, certain subsidies, namely the Tabung Haji and electricity tariff which has long benefitted the rich, are not practical to be continued (for that group) any longer," he said at Perdana Putra here today.
Anwar stated that the same concept would be applied in future discussions, such as for diesel and other subsidy items.
Anwar, who was accompanied by Economy Minister Rafizi Ramli, also said the government would launch the Madani economic narrative in August to provide the rakyat with a clearer direction of the country's economy.
Anwar, who is also Finance Minister, said the launch of the narrative was important to facilitate policies and implement action plans at ministerial and department levels.
He said the narrative would serve as a broad framework for the country's future economy, and that once released, it would be communicated to the people in phases through a statewide engagement programme.
"At today's meeting, we also had a representative from Bank Negara who explained about the present economic situation, strength, the present world economy status, the need to restructure and how to overcome it as well as on economic reformation," he said.