How much could targeted subsidies save annually, according to Muhyiddin?

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Targeted subsidies could save RM20 billion annually, according to Muhyiddin Yassin.

Former Prime Minister Tan Sri Muhyiddin Yassin stated that the implementation of targeted subsidies could result in annual savings of RM20 billion for the government. He indicated that a significant portion of current subsidies benefits groups that do not qualify, with only a small percentage reaching the intended B40 segment.
Savings potential of targeted subsidies

Muhyiddin, in his capacity as the chairman of the National Recovery Council, estimated that RM20 billion could be saved each year through a targeted subsidy approach. He elaborated that approximately 50 per cent of government subsidies were being utilised by affluent individuals, including those with large vehicles, suggesting a substantial inefficiency in the current system.
Subsidy distribution concerns

According to Muhyiddin's assessment, only about 20 per cent of the subsidies provided by the government were consumed by the B40 group. The remaining majority was enjoyed by individuals or entities that did not meet the criteria for such assistance, highlighting a clear rationale for a policy shift.
Rationale for targeted aid

Muhyiddin argued that the basis for implementing a targeted subsidy scheme was robust, aiming to ensure a higher percentage of aid reached the B40 group. This perspective underscores the perceived strength of the evidence supporting the need for a more focused distribution of subsidies.

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How much could targeted subsidies save annually, according to Muhyiddin?

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