Targeted Fuel Subsidy Set To Begin Early 2024

Targeted fuel subsidy looks set to roll out early next year, that is according to Economy Minster Rafizi.

The Economy Minster Rafizi Ramli reportedly said that the government looks set to implement its targeted fuel subsidy program starting early next year (2024).

According to Bernama, Rafizi mentioned this yesterday during a press conference following the tabling of the 12th Malaysia Plan Mid-Term Review by the Prime Minister in Dewan Rakyat.

 Rafizi notes that the time frame for implementation stems from the scheduled launch of the Main Data Base System (PADU) in Nov this year. This comes ahead of said system’s planned public accessibility that will open by Jan next year where it will allow the public to verify their socioeconomic status.

The subsidy mechanism, either cash transfer or card issuance, will be decided from time to time, adds Rafizi.

“Whether the mechanism is to be cash transfer or card issuance will be decided from time to time because the priority now is to ensure there is complete information on the socioeconomic status of every household,” Rafizi explained.

As a recap, the Ministry of Domestic Trade & Cost of Living (KPDN) was reportedly in the midst of discussions on the use of a special identification system as part of its targeted diesel and RON95 fuels subsidy mechanism.

The fuel subsidy will be driven by the upcoming PADU system that sees to ascertain socioeconomic statuses of every household in the nation.

As announced by PM Datuk Seri Anwar Ibrahim, who is also Finance Minister, back in May this year, PADU would help the government ensure subsidy programs would be implemented in a more orderly manner and prevent any eligible household from being left out.

This is  made possible through the PADU system’s integration of the aforementioned socioeconomic info for every household in the nation. In turn, this would also aid in streamlining the efforts of implementing targeted subsidy programs.