Selangor Journal

Targeted RON95 subsidy programme to roll out next year — Rafizi

KUALA LUMPUR, Nov 27 — The government will roll out the targeted RON95 subsidy programme in the second half of 2024 to optimise its resources towards those that need it the most, said Economy Minister Rafizi Ramli.

He said a country where those in the top 20 (T20) income group are receiving 53 per cent of blanket fuel subsidies is not a sustainable model, nor is it an equitable one.

“These efforts are in line with the government’s position of widening the fiscal paradigm we work in.

“Given our public finances have run a fiscal deficit of more than 5 per cent for three consecutive years, we must find new avenues to mobilise our resources and reduce wastages within the system,” he said in his keynote address at the National Economic Outlook Conference, here, today.

Rafizi said implementing the subsidy retargeting programme by the end of 2024 would immediately translate into a better fiscal position for the country.

Meanwhile, he said the Economy Ministry will table the Progressive Wage Policy in Parliament in three days to fix the systemic issue of low wages in Malaysia.

He said the government remains mindful that wage growth must be productivity-driven through upskilling efforts.

“This has been emphasised by the five HGHV (high growth, high value) sectors identified in the mid-term review, where we want to focus on creating a greater proportion of technological-frontier jobs.

“It remains shocking to me that our median wage is only RM11 above the poverty line,” he added.

— Bernama

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