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Ku Nan blames middlemen who back Pakatan Rakyat for price hikes

Tengku Adnan bidas Anwar

Putrajaya today accused pro-opposition middlemen of deliberately increasing the prices of goods and services, in order to incite hatred against Barisan Nasional.

Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor (pic) said the government was aware that many middlemen were staunch opposition supporters.

"They have played a major role in siding with the opposition and inciting the rakyat's hatred towards Barisan Nasional," he said.

"These middlemen have consistently preached that if Barisan Nasional wins, the prices of goods and services will increase as BN stands for Barang Naik.

"But in fact, BN stands for Better Nation," Tengku Adnan said, speaking to reporters after officiating the Maulidur Rasul celebrations for the Aceh community in Kuala Lumpur.

Tengku Adnan lamented the fact that these middlemen had taken advantage of the government's actions in slashing subsidies to increase the prices of goods and services.

"When electricity tariffs increased, the price of 1kg of ice rose by RM1. When asked the reason for the increase, the businesses claimed electricity tariffs had gone up.

"When we slashed the sugar subsidy, restaurants took advantage by increasing their prices by 30 sen for every glass of drink sold."

Following the 13th general election, Putrajaya has begun its long-delayed fiscal reform programme to accelerate fiscal consolidation despite a weaker political mandate.

Prime Minister Datuk Seri Najib Razak announced the implementation of a Goods and Services Tax (GST) from April 2015 for the purposes of broadening the tax base.

The GST is also expected to help ease the government's reliance on petroleum-related revenue.

In addition, subsidy rationalisation started last September with an increase in fuel prices, helping to stem the growth of a subsidy bill that has accounted for a large portion of Putrajaya's spending.

Among others, the government has reduced fuel subsidies, removed the price control for sugar and increased the excise tax for tobacco.

Electricity tariffs and the assessment value for KL properties have also increased, while the federal government is considering raising toll rates and public transport fares this year.

The unpopular spending cuts have hit Malaysians hard as costs of daily essentials have begun to spiral, forcing the Najib administration to fend off criticism on a daily basis. – January 18, 2014.