Latest news with #RM100bil
The Star
6 days ago
- Business
- The Star
‘Don't delay RON95 revamp'
PETALING JAYA: The government should proceed with the targeted RON95 petrol subsidy rollout despite the recent spike in global oil prices due to escalating tensions in the Middle East, say economists. Sunway University economics professor Dr Yeah Kim Leng stressed that the surge in crude oil prices makes it even more urgent for the government to implement the plan. 'It will allow the burden of rising oil prices to be shared with consumers and businesses while preventing a ballooning subsidy burden to the nearly RM100bil incurred in 2020 during the Covid-19 pandemic,' he said. Yeah pointed out that unless absorbed by the government, higher global oil prices would lead to increased pump prices, putting pressure on national finances. 'This would require the government to cut other expenditures or incur a higher fiscal deficit, which will further raise the country's debt level,' he said, suggesting a gradual rollout to enhance the nation's resilience in coping with global uncertainties and oil price shocks. On Friday, global oil prices surged by over 9% to around US$75 (RM318) per barrel, the highest in nearly five months, following Israel's pre-emptive strike on Iran. Earlier in April, oil prices had dipped below US$60 (RM254) before climbing to around US$65 (RM275) by mid-month, still lower than December 2024's US$74 (RM314). Economist Dr Geoffrey Williams echoed the call to proceed with subsidy rationalisation, noting that higher oil prices would widen the gap between market prices and retail pump prices, increasing the government's subsidy burden. 'It's better to rationalise subsidies now if oil prices are expected to remain high for the rest of the year,' he said. The government stands to save at least RM8bil or more, he added, which could be redirected to critical areas such as healthcare, education and social protection. Williams also cited the success of earlier rationalisations in diesel and electricity subsidies, which raised RM11.5bil without triggering hostile market or public reactions. 'The government must push through with targeted subsidies now. There is no better time and any delay will signal weakness and damage credibility,' he added. Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong also supported a phased implementation, warning that any delay could significantly increase the government's subsidy bill if oil prices continue to rise. 'This is to avoid a sudden shock to the nation's economy, which is already grappling with the current geopolitical uncertainties,' he said. He also called for the Price Control and Anti-Profiteering Unit to be strengthened to prevent businesses from arbitrarily raising prices, which could drive up inflation and supply chain costs. Meanwhile, Federation of Malaysian Business Associations vice-chairman Nivas Ragavan cautioned that the timing of the rollout is crucial, particularly when global oil prices remain uncertain. 'Volatile oil prices can exacerbate the burden on the rakyat if not carefully managed. A sudden implementation during a price spike could be highly inflationary and politically sensitive,' he said. He noted the government's earlier decision to delay the e-invoicing initiative to ease the burden on businesses, and suggested a similar approach may be needed for the RON95 subsidy if global oil prices remain unstable.
The Star
27-05-2025
- Business
- The Star
Sim: Investing on human resources will ensure further growth
KUALA LUMPUR: It is time for Asean countries to work together to become a self-sustainable region in the face of economic uncertainties arising from conflicts between global powers, says Steven Sim. The Human Resources Minister said this must include improving the sustainability of key sectors of economic and human resource (HR) development for all Asean countries. He called on the region to enhance its collaboration on human development by sharing best practices and solutions to regional challenges. 'Malaysia itself spends RM80bil on education annually, with up to another RM7bil on skills education, making it almost RM100bil spent a year on HR development. 'If this number is an average even among just 10 of our Asean member states, we are looking at about a trillion budget a year from Asean governments alone for HR development. 'This is why initiatives like the Asean Human Capital Development Investment Symposium (AHCDIS) are key to help us better utilise our HR best practices and solutions among us. 'Combined with our almost 60-year long collaboration as its core, we must utilise our logical and natural tendency to work towards making our economies sustainable,' he said in his speech during AHCDIS here yesterday. Sim said this was especially due to the current turmoil of global geo-economic dynamics that could leave Asean countries to suffer economically. 'For the last half decade, our region has been defined by its mass production model economy, offering low- to mid-skill and low-cost labour input for everyone, which has lifted many members from poverty. 'But it has become unsustainable to offer continual cost cutting to the global economy, especially in an age where global players are calling for more inward nationalism and declining global cooperation. 'We are now constantly depressed and threatened by the big boys despite decades of offering cheap labour and resources to build some of their biggest companies in our region,' he added at the two-day event here. AHCDIS is part of the Human Resources Ministry's Asean Year of Skills (AYOS) 2025 initiative and organised by Human Resources Development Corp (HRD Corp) in collaboration with the International Labour Organisation (ILO) and supported by the Asean Secretariat (ASEC). HRD Corp chairman Datuk Abu Huraira Abu Yazid said the symposium seeks to provide a platform for all stakeholders to explore innovative workforce skills financing solutions. 'This symposium is not just a gathering of experts but a regional action platform where policymakers, employers' organisations, worker representatives, development partners and education institutions come together. 'They can then use this collaboration to identify actionable solutions, share best practices and build momentum for long-term investments in human capital across the region,' he said in his speech at the event. AYOS 2025 organising chairman Rony Ambrose Gobilee said the symposium serves as a key platform to help industries shape and train their workforce for a sustainable future. 'Skills in digitalisation. and technical and vocational education and training (TVET) in particular, are the focus of the symposium as they are the most key skills going into the 21st century. 'While knowledge of concepts is important, these two skills (digitalisation and TVET) will be the most in-demand if we wish to become a sustainable economic region,' he added.
The Star
24-04-2025
- Business
- The Star
HR Minister urges semiconductor industry to re-imagine Penang's future
GEORGE TOWN: Industry leaders should turn uncertainty into opportunity and accelerate Malaysia's transition into a high-value economy driven by innovation, says Steven Sim. "They should boldly re-imagine Penang's future, one that shifts the state's economic force from Made in Malaysia to Made by Penang/Malaysia, transforming it from an outsourced manufacturing hub into an innovation-driven economy," said the Human Resources Minister. He was speaking at two industrial dialogues organised by InvestPenang over the weekend jointly with Deputy Investment, Trade and Industry Minister Liew Chin Tong and Invest Penang chief executive officer Datuk Loo Lee Lian. The event gathered over 30 key stakeholders from Penang's semiconductor and advanced technology sectors, including those from multinational corporations and local small and medium enterprises. Sim said nurturing local talent, developing homegrown technology and attracting strategic investments would empower Penang-based companies to not only serve global supply chains through manufacturing but innovate and design proprietary technologies backed by local expertise. In a statement, Sim said more than RM40bil in financing and guarantees have been mobilised to empower micro, small and medium enterprises (MSMEs), the backbone of local industry and job creation. "At the same time, government-linked investment companies will channel more than RM100bil domestically under the five-year (2024-2028) GEAR-uP programme to spur long-term growth. "To reinforce household spending power, the government has approved civil service pay hikes and raised the private sector minimum wage, ensuring an additional RM20bil in extra income being spent in the economy. As the Asean chair, Sim stated that Malaysia is leading efforts to strengthen the grouping's role as a cohesive regional economic bloc, where a recent joint statement by ASEAN economic ministers reaffirmed the region's united stance in navigating global economic challenges and external market volatility.
