Reflective Task Question

Subsidies have played a significant role in shaping Malaysia's economic landscape, serving as a cornerstone of the country's development policies for several decades. These financial incentives and support mechanisms, provided by the government, have been employed to promote various objectives, ranging from poverty alleviation and social welfare to industrial growth and economic stability. The use of subsidies in Malaysia has evolved over time, reflecting changing economic priorities and global dynamics.

According to the Ministry of Finance, the total amount of subsidies was RM80 billion in 2022. In the 100th People's Financial Report, the government has provided various consumption subsidies consisting of petrol, diesel, liquefied petroleum gas (LPG), cooking oil, flour, and electricity.

Required:

1. Critically evaluate FIVE (5) advantages of subsidies in Malaysia. (Describe each point)
2. Critically evaluate FIVE (5) disadvantages of subsidies in Malaysia. (Describe each point)
3. Discuss the challenges and opportunities that Malaysia faces in reforming its subsidy programs to align with international trade norms and promote a more competitive and export-oriented economy. (Describe each point)