KUALA LUMPUR, May 18 — The implementation of targeted subsidies for diesel is expected to begin next year, said Domestic Trade and Cost of Living (KPDN) Minister Datuk Seri Salahuddin Ayub.
He said the National Economic Action Council (MTEN) agreed in a meeting yesterday that an integrated database should be prepared to ensure the effectiveness of the implementation of the initiative, adding the discussion involved KPDN, the Finance Ministry, Transport Ministry and Investment, Trade, and Industry Ministry.
“All agencies and ministries already have their own databases, we just need to coordinate and make sure they are accurate and effective when it (targeted subsidies for diesel) is implemented,” Salahuddin said.
He was speaking to reporters after attending the launch of the 2023 Franchise International Malaysia (FIM) Exhibition and Conference at the Kuala Lumpur Convention Centre, earlier today.
In February, Deputy Finance Minister Datuk Seri Ahmad Maslan was reported as saying the government could save up to RM17 billion if the T20 income group was not given petrol, diesel and liquid petroleum gas (LPG) subsidies.
Asked about the implementation of unsubsidised petrol stations in Kelantan following the pilot project in Padang Besar and Wang Kelian in Perlis, Salahuddin said the programme was aimed at curbing the issue of leakage and smuggling of diesel and petrol at the country’s borders.
Earlier, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said KPDN was finalising the implementation of unsubsidised petrol stations in several other states.
He said the project under the Border Economy Programme could save the government’s oil subsidy allocation, besides providing more revenue to the country through sales tax imposed on foreign vehicles.