PUTRAJAYA, June 11 — Prime Minister Datuk Seri Anwar Ibrahim announced that savings from targeted diesel subsidies will be redirected to the people, especially via improved public transport and the Rahmah Cash Aid (STR).
Acknowledging that the targeted subsidy has not been popular, Anwar, who is also Finance Minister, said the move would result in annual savings of RM4 billion and has undergone several stages of thorough research.
“The savings (from targeted diesel subsidies) will support public transport needs.
“Imagine the STR for nine million recipients of direct cash subsidy, which amounts to RM10 billion. The funds from the targeted subsidy are not for increasing ministerial allowances or other interests; I focus on assisting the people,” he said during a gathering of Finance Ministry staff here today.
Diesel at all retail stations in the peninsula now costs RM3.35 per litre, which is the unsubsidised market price based on the average for May, according to the Automatic Price Mechanism formula.
Previously, Finance Minister II Datuk Seri Amir Hamzah Azizan reportedly said diesel prices would be announced weekly following the current practice of the Finance Ministry, with the government continuing to monitor the situation to avoid price instability.
However, he said the targeted subsidy does not involve Sabah and Sarawak.
Meanwhile, Anwar emphasised the targeted diesel subsidy was implemented to ensure it does not benefit the wealthy and foreigners.
“I told the Cabinet we need to make wise decisions, we must assist the majority of the people. We should not provide subsidies to the very wealthy, large industries, and foreigners.
“(This) is not discrimination against foreigners because foreigners do not pay taxes… the levies (they pay) are very little. Our main responsibility is to our citizens,” he said.
He noted that the implementation of targeted diesel subsidies has been well received by parties within the Unity Government and some opposition parties as well, and it will be monitored to prevent issues.
“So far, the statements from PAS leaders seem rather moderate, not opposing but merely monitoring. There are no issues because the opposition should monitor the implementation, and so should we.
“The subsidy (for diesel) is maintained for fishermen, public transport, and around 30,000 smallholders, including vegetable farmers in Cameron Highlands, because we do not want it to be used as an excuse to raise prices,” he said.
He emphasised the government has undertaken three targeted subsidy rationalisation measures, namely, electricity tariffs, chicken price floats, and diesel subsidies, all of which are anticipated to result in savings of approximately RM10 billion.
“This is the third-largest step, the first being electricity tariffs, which were less controversial because it benefited 85 per cent of the population and only affected the top 15 percent and foreigners, saving us RM4.5 billion annually.
“… We saved RM1.2 billion (with the floating of chicken prices). Political stability and firm political determination are important, that’s why I always link it to governance,” he said.
— Bernama
