"Our national debt stood at RM233.92bil last year (2010) or 34.3% to the Growth Domestic Product. It used to be worse but some of the debts were repaid in the last decade when the ringgit gained in strength. Yes, surprisingly our country’s debt is not a huge mountain as some people would like us to believe, but what is worrying is the lack of support for efforts to reduce it further. A sure way of doing it is by reducing subsidies.
In 2009, it was reported that the Government spent RM74bil in subsidies ranging from social projects to energy and food. This translates to an annual subsidy of about RM12,900 per household. Cutting back on subsidies would be unpopular with the people. The negative reaction to the floating of the premium petrol prices and the allowing of energy prices to rise are examples of the backlash the Government has gotten from its efforts to reduce its subsidy spending."
The Star Online, Friday July 22, 2011, When great nations go broke. By Wong Sai Wan
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