SUBSIDY rationalisation is nothing other than targeted subsidy, the means to ensure that all financial assistance is delivered to those most in need. A blanket subsidy does the opposite, where public monies spent as subsidies are enjoyed by all. Who pays for these subsidies? The government, which means it comes from taxpayers. Given that the basic rationale for subsidies is social justice, that is, the redistribution of the nations wealth to ensure a fair distribution then, it would nominally mean that subsidies should result in the alleviation of the living standards of the poor. If the 1Malaysia Peoples Aid (BR1M) yardstick is the received norm, then the definition of Malaysias poor would require that subsidies target households earning less than RM3,000 per month. Unfortunately, with one of the countrys most expensive subsidy packages, the fuel subsidy, social justice is not the informing philosophy.
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