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Govt defends subsidy reforms as measure to ease people's financial burden

KLANG: The government has defended its decision to implement several subsidy rationalisations this year, as part of a broader strategy to reduce the financial burden on lower-income groups.

Prime Minister Datuk Seri Anwar Ibrahim acknowledged that the changes, particularly in electricity and diesel subsidies, were unpopular.

However, continuing the previous approach would mean subsidising wealthier households as well, he said.

"Most of the electricity subsidies were benefiting wealthy households due to their higher usage.

"There were complaints, saying the prime minister is useless, but without these changes, we would be subsidising the rich," Anwar said during a town hall session with Westports employees.

Anwar, who is also finance minister, also questioned the previous RM1.2 billion allocation for chicken subsidies, which he said were controlled by cartels that manipulated prices.

"We decided to withdraw the subsidies because they were not effective.

"We must ask who has been benefiting from that RM1.2 billion all this time?" he said.

He urged the public, especially community leaders, to understand these necessary measures.

"We're not stealing money or taking public funds," he said.

Anwar said the entire cabinet stands behind the subsidy rationalisation policy.

"It is not just Anwar's decision. The whole cabinet supports it.

"If anyone disagrees, we can discuss it.

"I have no issue with that," he added.

Among those present were Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Transport Minister Anthony Loke Siew Fook, Selangor Menteri Besar Datuk Seri Amirudin Shari and Westports Holdings Bhd executive chairman Datuk Ruben Emir Gnanalingam Abdullah.

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