29th December 2022 - 2 min read
Domestic Trade and Cost of Living (KPDN) Minister, Datuk Seri Salahuddin Ayub has reassured that his ministry will utilise a comprehensive set of database in drawing up the mechanism for targeted subsidies. This is especially so in the case of RON95 petrol.
The minister acknowledged the importance of having an inclusive database in order to make the targeted subsidy mechanism a success, and emphasised that data will be sourced not just from the Road Transport Department (JPJ), but also various other agencies.
“The RTD data is just one of the several elements that will be used in the provision of targeted subsidies for the RON95 grade petrol that I had previously stated. We also have data from Bank Negara, the Inland Revenue Board (IRB), Department of Statistics Malaysia (DOSM) and the Treasury, in addition to studies done by local universities that will be our reference,” Datuk Seri Salahuddin elaborated, noting that he had already indicated this clearly before.
Last week, Datuk Seri Salahuddin had said that the government will tap into JPJ’s database on vehicles’ cubic capacity as part of its provision of targeted subsidies involving RON95 petrol, but was subsequently criticised by experts, who stressed that using a vehicle’s engine size to determine the provision of fuel subsidy will not be an effective method. This is as the engine capacity of vehicles does not necessarily reflect the true state of an individual’s financial and economic status.
Additionally, some cars employ updated technologies that result in a lower cubic capacity displacement. As such, economists urged the government to adopt a more holistic approach in its implementation of targeted fuel subsidy instead.
“It is true that among the data we will refer to is from JPJ, but we understand there is a need to have an integrated and comprehensive data centre for the government to succeed in providing any form of targeted subsidies efficiently,” Datuk Seri Salahuddin further explained, adding that his ministry will also work with the National Action Council on Cost of Living to review all the data before the government finalises the subsidies.
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