KUALA LUMPUR – The government is studying a new mechanism for targeted fuel subsidies to ensure that only eligible consumers benefit from the lower prices, said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
However, he said the government has not determined a time frame to implement the proposed mechanism, and that it would only come into effect with approval from the cabinet.
“For now, discussions regarding targeted subsidies are ongoing but our main priority is ensuring a proper mechanism,” he said, as quoted by The Vibes’ Bahasa Malaysia sister portal, Getaran.
Tengku Zafrul said this to reporters after launching the action plan and accountability report for telecommunications infrastructure services company, Edotco Group.
He added that various platforms for the mechanisms involved are being examined, considering the diversity of the nation’s consumers.
“We are looking for the best platform (for subsidies) because users differ (from each other), and the customer experience also varies between rural and urban areas,” he said.
Previously, Tengku Zafrul had said that Malaysia is expected to fork out higher subsidies to the tune of RM71 billion in 2022, with petrol subsidies alone reaching RM30 billion amid a spike in global crude oil prices.
He also said the subsidies this year would be double the RM30 billion dished out last year.
He added that the government subsidies had allowed the national inflation rate to remain low at 2%, although food prices had shot up by 4%.
The government had earlier announced an agreement to implement targeted subsidies after data showed that out of every RM1 spent on subsidies, RM0.53 went to higher income groups, while only RM0.15 went to the B40. – The Vibes, July 7, 2022
