Targeted Subsidies Will Not Affect Foreign Investments – MITI

The implementation of targeted subsidies by the Malaysian government in the future will not affect foreign investments coming into the country, said the Ministry of Investment, Trade, and Industry (MITI).

According to its minister, YB Datuk Seri Utama Tengku Zafrul Abdul Aziz, this implementation would not affect foreign investments because most of the investors opted for long-term investments in the country.

MITI minister YB Tengku Datuk Seri Utama Zafrul Abdul Aziz

The MITI minister also said that most investors usually focus more on looking at investment policies as well as national policies that are consistent before making any decisions to invest in Malaysia. Zafrul gave an example of the semiconductor industry, where the local sector has been established since the 1970s, which showcases the kinds of long-term investments made by many foreign investors in our nation.

In terms of operational costs, Zafrul said Malaysia is still relatively low compared to other countries, simply because most companies are not entitled to any kinds of subsidies to begin with. Therefore, even with the implementation of targeted subsidies in the near future, these companies won’t be directly affected by them.

With the aim of ensuring that subsidies are appropriately directed towards those who need them the most, this proposed subsidy scheme will kick-start with the implementation of the targeted fuel subsidy, which is planned to go online later in the second half of 2024. To help with the targeted subsidy implementation, the government has launched the national Main Database System (PADU), where it allows the public to verify their socioeconomic status.

With its preliminary registration closed on March 31, PADU has recorded more than 10 million registrations, which is still less than the targeted 50% out of the total eligible citizens of 30 million.

Source: Bernama