Fuel price hike necessary, says Muhyiddin - Bernama
The government’s decision to raise fuel prices this week was not meant to bring inconvenience to the people, but was a necessary step to save the national economy.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said the measure could have come as a surprise but it was appropriate as world economic analysts said it was necessary to ensure that Malaysia remained progressive.
According to Bernama, Muhyiddin said the government was a responsible one and did not seek popularity merely to garner the people’s support.
“If nothing was done to reduce the subsidy for the fuel prices, the country would have to put up with an acute economic situation,” he said yesterday in Kampung Maju Jaya, Kempas, Johor.
Muhyiddin said he realised the government’s move to raise the price of RON95 petrol and diesel by 20-sen a litre was not well accepted by the people, but added that raising fuel prices was something that could not be averted due to the uncertain economy and the market price of fuel following the turmoil in West Asia which had affected Malaysia’s export.
“As an elected government, we must be responsible. We cannot reject the fuel prices just to be popular. Of course, giving away fuel for free can make the government even more popular.
“But the fundamental question is not to become popular. We want to do things right. We want to be a responsible government. We heard the advice of many economists before adopting the measure,” he said.
He said economists who attended the meeting on the National Fiscal Policy chaired by Prime Minsiter Datuk Seri Najib Razak also said that if the government did not reduce its fuel subsidy, the economic growth would be adversely affected.
This, he said, would have a direct impact on the government’s policy of implementing pro-people policies, including allocating RM24 billion annually to subsidise various essential goods.
He also said the fuel subsidy by the government was enjoyed by not only the needy but also by everyone, including foreigners working in the country, and this was different from the situation in other countries which only gave fuel subsidy for the poor.
“Therefore, we reduced the subsidy and helped the country save RM3.3 billion annually, and the money can be spent by the government in the form of the 1Malaysia People’s Aid (BR1M),” said Muhyiddin.
He added that the government was not marginalising the middle-class, and was taking the appropriate steps to reduce the burden they had to bear. – September 6, 2013.
