Malaysian Prices Rises after Government Cut Subsidies

In this rally against the removal of subsidies by the government, there’s a festive-like atmosphere… but there was also anger…

Azan Safar is the chairman of TURUN, an NGO set up to oppose the slew of price hikes.

“They increased the price of fuel, they increased price of sugar, they have increased the property assessment rate, they are increasing the peoples rage.”

In recent months government subsidies on sugar and petrol have been removed resulting in price rises across the board.

Electricity tariffs are also expected to be raise by 15% this year.

Yagabaram, a resident, is complaining about the situation.

“It’s a heavy load for me and for my family. I don’t like this. I can’t accept this. Before this there hasn’t been any hikes. Over time there has been a lot of increases in food and clothing. Now with this it’s a burden for us.”

The Malaysian Prime Minister says energy and food subsidies were “no longer sustainable”.

Malaysia has one of Asia's highest debt-to-GDP ratios.

The government says that low-income earners will continue to receive handouts to help them.

But opposition politicians say the government pushing the burden on to the people.

Rafizi Ramli is the Strategic Director of the opposition party PKR…

“Najib has always announce we are in a good economic shape. But at the same time the economic improvements shown by Barisan Nasional has not reached the people. What the people are asking is if its true that Malaysia is truly rich like that why would we want to count 20 cent for sugar and take it from the people.”

The government argues that they are also sharing the burden.

As of this year government ministers’ entertainment allowances will be cut by 10 per cent, while new applications to renovate government offices will be frozen.

Many civil servants will be banned from business class flights and restrictions will be slapped on gift-giving.