Spending on subsidies and social assistance to fall by 6.5% in 2017

PETALING JAYA: The government reduced spending on subsidies and social assistance by 6.5% to RM23.1 billion (2016 : -9.5%), with the rationalisation of cooking oil subsidy for 1kg to 5kg bottle and the weekly-managed float system for fuel prices to minimise the lag effect of daily crude oil price changes.
These measures are expected to contribute to a savings of RM1.2 billion in 2017.
The government however continues to provide targeted subsidies, incentives and welfare assistance, particularly for the agriculture, transportation, education and health sectors.
A sum of RM6.6 billion is estimated to have been disbursed under the 1Malaysia People's Aid (BR1M) payment, which has been increased to RM1,200, benefiting 7.2 million recipients for both households and individuals.