Rice subsidy raised, electricity tariff also under review

KUALA LUMPUR, 22 Nov 2018: 

The government will increase the Padi Price Subsidy Scheme (SSHP) rate to RM360 per metric tonne of paddy production to help padi farmers.

Finance Minister Lim Guan Eng yesterday said it is an increase of RM60 from the SSHP in 2016 of RM300 per metric tonne.

He said the government would also increase the Rubber Production Incentive (IPG) by 30 sen per kilogramme.

“For rubber, it will be RM2.50 from the previous RM2.20.”

Some MPs – including Datuk Seri Anwar Ibrahim (PH-Port Dickson), when debating the 2019 Budget – previously suggested Lim to pay attention to the lot of fishermen, farmers, and smallholders in the 2019 Budget.

The first budget for the Pakatan Harapan government was approved by the House of Representatives at the policy level yesterday.

The government will also study proposals to standardise the electricity tariffs for school and government buildings, said Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

She said electricity rates were now determined every three years, with the rates in Peninsular Malaysia using the Incentive-Based Regulation (IBR) mechanism.

She said the IBR framework was used by taking into account the funds invested and the operating expenses to meet electricity demand throughout the peninsula.

“If we change the electricity tariffs now, there will be other users who will be cross subsidised.”

She was replying to Datuk Seri Wee Ka Siong (BN-Ayer Hitam) about schools complaining of paying the same tariffs as commercial buildings.

Yeo said her ministry was holding talks with the Education Ministry for all schools to implement the energy saving programmes to reduce electricity bills.

According to her, the Energy Commission’s Energy Efficiency Challenge (EEC) programme for schools had increased energy efficiency in 54 schools.

“There was a 10% reduction (in electricity consumption) through the EEC, which saved almost RM390,000.”

Further, the government will carry a detailed study in the implementation mechanism on petrol subsidies to ensure that only those who are eligible enjoy the benefit.

Domestic Trade and Consumer Affairs Ministry secretary-general Datuk Seri Jamil Salleh said the mechanism involving low-income (B40) and medium-income(M40) households would be implemented in the second quarter of next year.

“These details need to be ironed out as we do not want complaints from the public that they are not satisfied over this sincere effort.

“Recently, there were parties which had asked for the subsidies, but the government was not able to extend it to them because there is a limited allocation, we can only give to those who truly qualify.”

In the 2019 Budget, the government announced that it will implement targeted petrol subsidies from the second quarter of next year.

– Bernama

Leave a Reply