KOTA KINABALU, June 10 — The targeted subsidies by the government will play a crucial role in reducing leakages and increasing aid initiatives for the people, Communications Minister Fahmi Fadzil said.
He said savings generated from subsidy rationalisation will be directly channelled to the public via additional government initiatives to boost the people’s income and ensure subsidies do not end up in the hands of irresponsible parties.
Fahmi said the Road Transport Department reported the country loses RM1.25 million daily due to diesel subsidy leakages and smuggling, adding that this substantial amount could instead be used to fund aid programmes for the people.
“It was reported a lorry was caught late last night attempting to fill and smuggle 4,800 litres of diesel. Despite the announcement of the targeted diesel subsidy being made at 5pm, there were still attempts to steal diesel at midnight,” he said.
Fahmi said this at the Communications Ministry’s Excellence Service Award ceremony for Sabah and Labuan, where 69 staffers received awards.
Yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that diesel at all retail stations in Peninsular Malaysia will cost RM3.35 per litre, which is the unsubsidised market price, effective 12.01am today.
Fahmi said if the targeted subsidy had been announced a week earlier, the country could have faced losses of RM8 million to RM10 million due to leakages and smuggling.
He said leakages via smuggling must be eradicated, adding that targeted subsidies ensure only eligible Malaysians benefit from them.
Meanwhile, Fahmi said to directly pass savings from diesel subsidies to the people in Peninsular Malaysia, the government is implementing the Budi Madani cash aid programme, which provides RM200 per month to private diesel vehicle owners, small farmers and smallholders.
“For people who are not part of companies, RM200 per month is sufficient, according to the Finance Ministry’s review. Starting today, 30,000 people will begin receiving this aid.
“Going forward, if this programme is successful and the subsidy reaches the people directly without being intercepted by middlemen or foreign fishermen, or taken across borders, we can expand this monthly aid,” he said.
— Bernama
