KUALA LUMPUR – The issue of diesel subsidy leakages of almost RM10 billion needs to be examined carefully to ensure that the lower income group can be protected, said Treasury secretary-general Datuk Johan Mahmood Merican.
He said as the subsidy has been given to all levels of society, the higher income group has also enjoyed the benefit and this need to be studied carefully.
“Certainly, we see leakages of subsidised diesel at construction sites and we need to reduce the leakages, especially for those shouldn’t be benefiting from the subsidy practices,” he said at the panel session on Budget 2023 Highlights and Strengthening Fiscal Reform at Invest Malaysia today.
Prime Minister Datuk Seri Anwar Ibrahim when tabling Budget 2023 raised the issue of diesel subsidy leakages with almost RM10 billion worth of diesel subsidies misappropriated in 2022.
On February 25, the Domestic Trade and Cost of Living Ministry has set up a special task force led by its secretary-general Datuk Azman Mohd Yusof to tackle the issue of diesel subsidy leakages.
Johan said that for this year, allocations have been prepared by the government to continue subsidies due to the government’s sensitivity regarding the cost of living under the Madani principle. – Bernama, March 8, 2023
