KOTA KINABALU: Subsidy rationalisation is unpopular but it has to be done, says Prime Minister Datuk Seri Anwar Ibrahim.
"I've said before, our tax base in Malaysia is about the lowest in the region. Look at the price of sugar, flour, rice and petrol. All of these, compared with our neighbours, are substantially low.
"(But) now, should we burden the people through increasing the prices? No, because however necessary, we should avoid giving the additional burden to the people.
"Yes, our inflation is about the lowest, less than two per cent, but to the farmers, to the workers, any slight increase is important because there is no increase in their salary and their wages," he said during the launching of Sabah International Blue Economy Conference at Sabah International Convention centre here today (Oct 19).
Anwar, who is finance minister, added that in order to cushion the economic impact, he had made a bold decision to start the highest increase for civil servants ever recorded in the history of this country.
With this decision, he expected them to work harder and be more efficient and serve the people with all their strength and ability.
"I've seen the chief secretary to the government and the state secretaries who desire to carry out their duties with clear commitment. I want to thank them too because now, the demand for salary increase is over.
"Now is the time for us to execute to the best of our ability to make sure our departments are efficient," he said.