Published: Wednesday April 30, 2014 MYT 12:00:00 AM
Updated: Wednesday April 30, 2014 MYT 7:57:47 AM
KUALA LUMPUR: Malaysia’s shift to targeted subsidies with its subsidy rationalisation plans and upcoming implementation of goods and services tax (GST) is a good policy that will benefit those who really need assistance, said World Bank country director Ulrich Zachau.
“What Malaysia is doing in terms of reducing untargeted subsidies and moving towards the improvement of targeted subsidies is a good policy.
“Many beneficiaries of subsidies don’t need them. They are going to lose those perks while people really in need will continue getting them,” said Ulrich, who is based in Bangkok.
He said this to reporters after attending a World Bank seminar to shed light on its “World Development Report 2014” here yesterday.
According to Bank Negara Malaysia assistant governor Marzunisham Omar, continued fiscal reforms would ensure that the country can sustain its growth beyond only one to two years.
“Fiscal reforms will offer necessary buffer and financial resources to lessen the impact of a financial crisis, if it were to happen,” he said in the seminar. — Bernama