West Asia Crisis Prompts Review Of BUDI MADANI RON95 Programme - Economist

BANGI, April 7 (Bernama) -- The ongoing impact of the West Asia crisis has prompted the government to review the current approach to the Budi MADANI RON95 (BUDI95) programme to ensure it reaches those who need it most, said an economist.

Malaysian Inclusive Development and Advancement Institute (MINDA-UKM) director, Professor Tan Sri Noor Azlan Ghazali, said the review would also provide an opportunity to refine subsidy distribution methods to make them more targeted and effective.

 He said that while subsidies help ease the cost of living, rising subsidy expenditure could place pressure on government finances.

As such, the increase in subsidies under BUDI95 warrants close attention, as it may affect the country’s fiscal position and long-term development planning, said Noor Azlan.

“A careful balance must be struck between assisting the public and ensuring economic stability.

“It is important for the public to understand how the government balances short-term needs with long-term development,” he said at the “West Asia Crisis: Economic Implications, What Should Malaysia Do?” forum, held at Universiti Kebangsaan Malaysia (UKM), here today.

Noor Azlan emphasised that subsidy spending, estimated at about RM4 billion per month or RM48 billion annually, is substantial.

He also urged the government to strengthen its subsidy determination framework, including the frequency of reviews for eligible recipients.

Noor Azlan said that existing databases such as the Central Database Hub (PADU), Sumbangan Asas Rahmah (SARA) and BUDI95 could be fully utilised to improve subsidy targeting and ensure assistance reaches vulnerable groups.

The price of RON95 petrol in Malaysia is currently maintained at RM1.99 per litre as part of the government’s efforts to shield the public from cost-of-living pressures, particularly amid an uncertain global environment.

-- BERNAMA