03/10/2025

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Malaysian Paper

/thesundaily /

‘Targeted financial aid could avoid worsening debt’

are eligible for subsidised RON95 petrol at RM1.99 per litre, with a monthly allocation of up to 300 litres. “Every government initiative would naturally undergo improvements from time to time. In this case, we are looking at possible enhancements based on outcomes from the implementation of past measures,” said Nor Azmie, responding to issues concerning private vehicle owners without valid driving licences. – Bernama BANGI: For 243 prison inmates, yesterday was not just another day behind bars as it was graduation day. With scrolls in hand and families looking on, they were celebrated as graduates of the Malaysia Skills Certificate programme, proving that even behind prison gates, second chances can be written. They received certification at the fourth convocation ceremony organised by the Solid Waste Management and Public Cleansing Corporation (SWCorp). Housing and Local Government Minister Nga Kor Ming, who officiated at the event, said the initiative underlines the Madani government’s belief that rehabilitation works best when offenders are given skills and dignity. “We have produced 1,100 graduates through this initiative. Some of these inmates were jailed for minor offences, not hard crimes. This ceremony brings hope to their families,” he said. The training, conducted at 18 prison vocational centres between August 2024 and April 2025, covered Level Two public cleansing operations, from street-sweeping and drain-clearing to grass-cutting and toilet upkeep. Graduates did not just gain skills, they also received a monthly RM500 allowance. Nga said this proved the government’s seriousness in preparing inmates for employment after release. With certification, they are eligible to apply for jobs with concession companies and local councils. “Inmates get a new lease on life while the country reduces its dependence on foreign workers in the cleaning sector.” He also said Selangor and Penang would enforce the Solid Waste and Public Cleansing Management Act 2007 next year, shifting responsibility for cleansing services from local councils to federal oversight via SWCorp. Other states are expected to follow, raising demand for certified local workers. “If they are not given a second chance, the risk of reoffending grows and society pays the price. But with skills, they could walk out with hope instead of a record that drags them back in,” he said. Nga pointed to early signs of success, noting that from the first intake in 2023, 258 inmates have graduated and seven secured jobs with concessionaires. “Although the numbers are small, many are still in custody. But this proves that the programme works. The opportunities are there once they are free,” he said. He urged the public to value cleaning work, noting that it is a profession that uses modern tools and deserves respect. The initiative also feeds into Malaysia’s bigger ambitions, lifting the skilled workforce to 35% by 2030. “To the graduates, your journey does not end here,” Nga told the audience. Prisoners graduate from certification programme Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

o Economists advise trimming subsidies for wealthy, redirecting cash to vulnerable groups

groups, as examples of efficient allocation. “Such programmes reduce leakage, allowing funds to be reallocated from less impactful areas while still protecting the vulnerable,” he said. Idham noted that Malaysia’s 4% fiscal deficit remains within a sustainable range, especially with debt at around 60% of GDP. “As long as deficits are tied to productive investments, such as digital infrastructure or education, they are more defensible than recurring operating costs,” he said. He also called for subsidy rationalisation, citing fuel subsidies for luxury cars and electricity subsidies for high-use households as areas that should be trimmed. “Redirecting those savings into cash transfers would shield lower-income groups while improving efficiency,” he said. But he cautioned against sudden cuts to essential items, such as cooking oil, rice, healthcare and public transport. “These are highly sensitive. Any reforms must be phased in with proper compensation,” he said. Idham suggested moderate taxes on luxury goods, high-end property and foreign digital platforms, while exempting local SMEs. “If done right, such measures could start contributing to the budget within a year.”

subsidies for the wealthy, corporations and non-citizens, with savings redirected into direct cash transfers for lower and middle-income families. She said the current 4% deficit is still manageable, provided the government follows a gradual fiscal consolidation plan. “The danger comes if we keep spending without a roadmap. Once debt crosses 70% of GDP, we are in risky territory,” she warned. She stressed that, while supporting subsidy rationalisation, aid in food, healthcare and education must remain intact. “Cutting back in these areas would harm poor families and risk triggering dissatisfaction,” she said. Nik Maheran proposed expanding the sales tax to luxury goods, raising excise duties on alcohol, tobacco and sugary drinks, and tightening digital tax collection via e-invoicing. “These could deliver returns within months,” she said, adding that wealth or dividend taxes for the ultra-rich should be explored. Universiti Teknologi Mara senior lecturer Dr Mohamad Idham Md Razak shared similar views, saying financial aid could continue without worsening debt if it is carefully targeted. He pointed to initiatives such as Budi95, which uses digital ID verification to channel fuel subsidies to lower and middle-income

Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

PETALING JAYA: Malaysia could continue providing financial aid without worsening its debt burden, but only if reforms and targeted policies are in place, economists say. Universiti Malaysia Kelantan entrepreneurship and business professor Datuk Dr Nik Maheran Nik Muhammad noted that while the economy is expanding, the federal budget remains under strain. Public debt has crossed 60% of GDP, with last year’s fiscal deficit at about 4%. “The key lies in smarter, targeted spending. For years, billions have gone into blanket subsidies, such as cheap fuel, which benefit high-income earners and even foreigners. That is not sustainable.” She urged trimming energy and fuel Crowds celebrate wedding procession of Selangor prince KLANG: Echoes of “Daulat Tuanku!” and congratulatory banners filled the air as the wedding procession of Selangor Raja Muda Tengku Amir Shah Sultan Sharafuddin Idris Shah took place here yesterday. From as early as 6am, crowds gathered along the streets to witness the historic union of the Selangor crown prince with his bride Cik Afzaa Fadini Abdul Aziz. Tengku Amir Shah, attired in a white traditional outfit and songkok , was escorted in a car along a 650m route from the Sultan Abdul Aziz Royal Gallery to Istana Alam Shah. He was accompanied by members of the royal family and palace dignitaries, with the 25th Battalion of the Royal Malay Regiment serving as escorts while the Selangor Royal Palace kompang troupe enlivened the procession. The parade began with a prayer recital by Sultan Salahuddin Abdul Aziz Shah Mosque grand imam Datuk Muhammad Farhan Wijaya, seeking blessings for the solemnisation ceremony. During the 20-minute procession, people of various races took the opportunity to capture the occasion, many clad in traditional attire, such as baju Melayu and batik, as a mark of respect. – Bernama

The royal marriage being solemnised at Istana Alam Shah in Klang. – BERNAMAPIC

Ministry may extend petrol subsidy to e-hailing sector KUALA LUMPUR: The Economy Ministry has not ruled out the possibility of expanding Budi Madani RON95 (Budi95) quotas for the e-hailing sector during the tabling of Budget 2026 next week. additional quota) would be announced based on other decisions, which would be made by the government soon, maybe under Budget 2026,” said Economy Ministry Secretary-General Datuk Nor Azmie Diron. would work with e-hailing operators to process applications in bulk. The government has also extended Budi95 eligibility to water transport, covering registered boat owners without requiring a valid boating licence.

He was speaking to reporters after launching the Junior Innovathon programme here yesterday. In a recent statement, the Finance Ministry said e-hailing drivers would not need to apply for Budi95 individually. Instead, the government

On Wednesday, the Finance Ministry announced that full-time e-hailing drivers would be granted additional eligibility for the Budi95 petrol subsidy, starting Oct 15. “The discussion on Budi95 would continue as announced by the prime minister. (The

Budi95 was rolled out in phases beginning Sept 27, starting with 300,000 members of the Armed Forces and police. Some 16 million Malaysians aged 16 and above with a MyKad and a valid driving licence