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At RM 37.3 bil, Malaysia spends more on fuel subsidies than healthcare

Jerrica · Jun 27, 2022 11:41 AM

At RM 37.3 bil, Malaysia spends more on fuel subsidies than healthcare 01

The finance ministry has announced that the projected consumption on fuel subsidy expenditure has reached RM 37.3 billion for petrol, diesel, and liquefied petroleum gas so far for 2022. That is about RM 5 billion more than the amount spent on healthcare which stands at RM 32.4 billion.

In a Bernama report, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz stated the projected consumption subsidies covered petrol, diesel, liquefied petroleum gas (RM 37.3 billion), cooking oil (RM 4 billion), flour and electricity, and subsidy bills (RM 9.7 billion) excluding welfare assistance from 2018 to 2022.

At RM 37.3 bil, Malaysia spends more on fuel subsidies than healthcare 02

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Including other assistance such as social welfare assistance like the Bantuan Keluarga Malaysia (BKM) (RM 11.7 billion) and other subsidies (RM 14.6 billion), the total subsidy the government has spent so far adds up to RM 77.3 billion for 2022.

Tengku Zafrul is quick to point out that government is sensitive to the rising commodity prices and inflation rates due to the disruptions to the global supply chain and the ongoing Ukraine-Russia conflict.

Also read: Finance Minister: There are still enough funds to continue fuel subsidy

At RM 37.3 bil, Malaysia spends more on fuel subsidies than healthcare 01

The aforementioned issues have caused basic commodity prices to surge in most countries, including Malaysia.

The government subsidy is intended to cover the cost of living of the people, however, they are aware that the current blanket subsidy system which covers petrol, diesel, water, and electricity, also provides great benefits to the M40 and T20 groups.

At RM 37.3 bil, Malaysia spends more on fuel subsidies than healthcare 02

"The Finance Ministry will continue to monitor external factors that can have a negative impact on the domestic economic situation to ensure that the cost of living of the people is under control," he added.

Under Budget 2022, the allocation for Ministry of Health is RM 32.4 billion, which is RM 4.9 billion less than the spending for fuel subsidies. 

Also read: FOMCA: Targeted fuel subsidy is good but transparency must be assured

 

Jerrica

Writer

There isn’t a time in memory that doesn’t involve staring at cars. After discovering the excitement of watching Schumacher vs Hakkinen, Formula 1 became a major part of life. The love for cars and F1 ultimately led to a job with CAR Magazine. The untimely death of the magazine meant a hiatus from cars at lifestyle women’s magazine Marie Claire before another opportunity came knocking again.

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