Prime Minister Datuk Seri Anwar Ibrahim said that the Cabinet has agreed to proceed with the implementation of the targeted fuel subsidy programme, starting with diesel for users in Peninsular Malaysia, specifically. This move is expected to help the government save as much as RM4 billion annually.

According to Datuk Seri Anwar, the programme will not involve consumers in Sabah and Sarawak for now because diesel is used in nearly every family’s vehicle in both states. “So we will postpone any action (on targeted diesel subsidy for Sabah and Sarawak) as it will burden the people there,” he said, adding that only the T20 income group and foreigners that will be affected by the implementation of this targeted subsidy rationalisation programme. He did not, however, reveal a concrete timeline as to when the implementation is expected to take place.

Aside from that, the prime minister also said that the government will take certain measures to prevent sudden hikes in the prices of goods and services due to this decision, such as to continue providing diesel subsidies to traders who drive diesel-based commercial vehicles.

“This includes 10 types of public transport vehicles and 23 types of goods transport vehicles permitted under the Subsidised Diesel Control System (SKDS), including bus operators and taxi operators. Additionally, certain categories of fishermen will also receive diesel subsidies,” Datuk Seri Anwar explained, noting as well that cash assistance will be provided to individuals who own eligible diesel vehicles, such as farmers and small traders.

Finally, the prime minister stressed that the implementation of targeted fuel subsidies does not translate to the complete withdrawal of subsidies, as may have been implied by some parties. “Rather, they are necessary to restructure the public financial framework. Similar to targeted water and electricity subsidies, the majority of the population will not be affected by this adjustment and will continue benefiting from government subsidies,” he explained.

Meanwhile, the savings from this subsidy rationalisation programme will be used to enhance other initiatives, such as the Sumbangan Asas Rahmah (Sara) and Sumbangan Tunai Rahmah (STR) programmes, to benefit those who truly need it.

(Sources: New Straits Times, Malay Mail)

• TAGS:
• Blanket Fuel Subsidy
• Datuk Seri Anwar Ibrahim
• Diesel Subsidy
• Fuel Subsidy
• Targeted Fuel Subsidy