RM77.3bil subsidies at ‘dangerously high’ level, says economist

[superadmin]

PETALING JAYA: Economists fear that government subsidies on consumer necessities are “dangerously high” at a projected RM77.3 billion this year, and are not sustainable in the long run.

The high subsidies would increase the country’s financial burden at a time when Malaysia faces the problem of staggering debts and an economic slowdown.

Political economist Firdausi Suffian of Sabah UiTM said the projected amount of RM77.3 billion in subsidies, amounting to 9% of Malaysia’s gross domestic product, was “dangerously high”.

He said the optimum amount should be less than 2% of GDP.

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