Deputy Prime Minister Muhyiddin Yassin said .... “We cannot guarantee there will be no increase in the prices of goods. We cannot control the prices but where the government can intervene to decrease public burden, then we will."
Escalating public debt and a record budget deficit have forced the Najib administration to reduce subsidies on several basic items like fuel and sugar already undergoing subsidy cuts.
However, rising cost of living and low wages have put pressure on Prime Minister Najib Tun Razak to channel more funds into existing subsidies.
Observers say potential voter backlash over escalating cost of living has given the opposition more ammunition, forcing a delay in subsidy cuts .
Najib said recently the government is willing to fork out an additional RM4 billion in addition to the RM10 billion allocated for subsidies this year.
Subsidies will be one of the major issues the Najib administration will have to deal with as it gears up for the coming general election.
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