No Way Out
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| K Veeriah |
It is indeed refreshing to note that the government is mulling delaying mega projects to provide subsidies to the people who are confronted with the escalating cost of living.
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| (Bernama Picture) |
11.4% inflation if subsidies removed
For once, there is an admission by economics affairs minister Mustapa Mohamed that real inflation ought to be about 11.4% if subsidies are removed.
That, in reality, is the conundrum – remove subsidies and conscript the people to suffer the impact of increasing inflation or continue subsidies as a means of mitigating the people’s suffering.
Continued subsidies to lighten the impact
In the former equation, people faced with insurmountable inflationary trends would be forced to agitate for financial relief, including a demand for higher wages. In the alternative, continued subsidies would be a mechanism to lighten the impact of the rising cost of living on the people.
Suspend mega projects, recalibrate expenditure budget
Besides suspending mega projects, the government needs to recalibrate its expenditure budget.
Unnecessary allocations
As it is, billions of ringgit have been allocated to ministries that do not serve the purpose of addressing the economic pressures faced by the people. Therefore, it would be timely to re-scale and divert such allocations and financial resources to provide assistance to citizens.
Food security
While it cannot be disputed that subsidies, estimated to come up to about RM80 billion this year, cannot be in place perpetually, the government needs to take stock of pressing issues related to food security.
Farmers and fishermen
However, sadly, we are seeing farmers being driven out of the land on which they have toiled to produce food for the people just so that developers can rake in profits. And when our sea is reclaimed ostensibly for the benefit of our future generation, it destroys the rich breeding grounds of marine life which inevitably results in depleting sources of seafood and a spike in the prices of “ikan kembung” and the like.
Don't play with taxes
There is no gain to say that our economic planners need to formulate policies focused on generating ”revenue”, otherwise called “taxes”, to balance the government’s “balance sheet”. And it has been propounded that it should capture ultra-rich individuals and companies by way of wealth and capital gains taxation.
Rock Steady
Caught between a rock and a hard place, the government has no choice but to prioritise the plight of the citizens.
Adaptation from an article written by K Veeriah, former secretary of Penang MTUC. First published by FMT on June 29, 2022.
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By Fauzi Kadir
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