KUALA LUMPUR – Bersatu president Tan Sri Muhyiddin Yassin has raised concerns about whether the government’s recent implementation of targeted diesel subsidies is influenced by the requirements of the International Monetary Fund (IMF).
The former prime minister wondered if the new targeted subsidies meant the government was starting to borrow from the IMF, which often requires countries to cut subsidies.
However, Muhyiddin did not allege that the government intends to borrow from the IMF; rather, he simply seeks clarification on the matter.
“I have noticed an increasing number of parties suggesting that the removal of the targeted diesel subsidy might be influenced by the IMF.
“I am not accusing anyone yet, but I would like an explanation as I am observing a trend in that direction,” he said during Perikatan Nasional’s ceramah for the Sg Bakap by-election campaign yesterday.
Muhyiddin also said that he and his predecessor previously refrained from coordinating subsidies due to concerns about potential sudden increases in the prices of other goods.
“Previous prime ministers and I were often told that we did not dare to implement targeted subsidies.
“We are aware that the country shoulders a significant subsidy burden, but implementing such actions can be startling. A sudden 55% increase over a short period will inevitably impact the prices of many other commodities.
“Even if the minister assures that prices of goods will remain stable, businesses will inevitably bear the increased fuel costs, leading to higher selling prices,” he said.
Muhyiddin also addressed the claim that the price of sugar will no longer be controlled and will instead be determined by the government.
“We’ve heard discussions about the government allowing the price of sugar to be determined by the market. Personally, I support this move because excessive sugar consumption can lead to diabetes.
“But if sugar prices go up, will the price of snacks, sweets, and drinks also go up? Is there a guarantee that food prices will not go up later?” he asked.
The Sg Bakap by-election scheduled for July 6 will feature a direct contest between Pakatan Harapan candidate Joohari Ariffin and Abidin Ismail, representing PN.
The by-election will be held following the death of the incumbent, Nor Zamri Latiff, on May 24 due to stomach inflammation. – June 29, 2024