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What has the BN government done to help the rakyat deal with rising prices?

Assistance all around

As a caring government, the BN devoted substantial resources to help lighten the burden:

  • RM34 billion spent in subsidies to keep petrol, diesel and gas prices low (2007)
  • RM9 billion spent in other subsidies, from fertiliser to tolls to tuition vouchers (2007)
  • Maintained controls on prices of essential goods prices
  • Charged higher electricity tariffs only on high-users, thus ensuring that more than 50% of households faced no increase
  • Removed schools fees, reduced road tax, provided low-cost amenities and many others

The BN also helped to increase disposable incomes:

  • Salary review and COLA for civil servants, police and armed forces
  • Increased special allowance for teachers and teaching assistants in rural areas
  • Enabled monthly withdrawal of EPF Account 2 for mortgage repayments
  • Tax relief of up to RM4,000 per child studying in tertiary institutions, and many others

Many of these measures are invisible as they have become a part of Malaysian life. But as the global prices of goods keep rising, it becomes more and more costly to maintain them. As a caring but also responsible government, the BN has endeavoured to strike a balance between providing assistance and ensuring that other government services are not compromised.