KUALA LUMPUR: Prime Minister Najib Tun Razak assured that the recent review on electricity tariff took into account the people’s interests by ensuring majority of them would not be affected.
He said about 71% of domestic users nationwide would not be affected by the subsidy gradualisation, while the remaining, which would be affected were mostly industrial and commercial users.
“Tenaga Nasional Bhd needs RM6 billion a year for investment,” he told a media conference after adjourning the 2013 Umno General Assembly here yesterday.
Last Monday, Energy, Green Technology and Water Minister Dr Maximus Ongkili announced that the electricity and gas subsidies would be reviewed, with the average electricity tariff in Peninsular Malaysia to be raised 14.89% or 4.99% per kilowatt-hour (kWh) to 38.53 sen/kWh from Jan 1, 2014.
Asked the reason for the subsidy gradualisation being implemented after the 13th general election. Najib, who is also Finance Minister, said it was decided by the government to strengthen the country’s fiscal position.
“We want to ascertain the country’s financial situation is stronger. In terms of the people’s interests, we have a social safety net.
“We will increase, for example, the 1Malaysia People’s Aid, we still have the i-BR1M, takaful insurance and others.
“We can consider (for further increase) from time to time, but we need fiscal strength ,” he added.
Najib also hoped that the people would understand that the subsidy gradualisation was part of the fiscal consolidation.
“They have to understand this is the process. There will be short-term pain, but not severe pain, mild pain, but in the long-term, it’s going to be good for the rakyat,” he said.
-Bernama
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