PM: Diesel Subsidy Savings Will Be Channelled Back To The Rakyat

Earlier this month, diesel prices across Peninsular Malaysia have been rationalised at new unsubsidised prices of RM3.35 per litre.

The recent hike in diesel prices to RM3.35 per litre across petrol stations in Peninsular Malaysia has sparked widespread dissatisfaction among the Malaysian public, with many expressing their frustrations on social media. 

Despite the public discontent, Prime Minister Datuk Seri Anwar Ibrahim has defended the move, stating that the savings from the targeted diesel subsidies will be redirected to benefit the public. "The savings (from targeted diesel subsidies) will support public transportation needs,” said Anwar.

Prime Minister Anwar emphasised that the funds saved from the targeted diesel subsidy, which amounts to RM4 billion annually, will also be channelled towards the Rahmah Cash Contribution (STR) program. 

Said program is designed to provide direct cash assistance to nine million recipients, totalling RM10 billion. He assured that the saved subsidies would not be used to increase ministerial allowances or for other interests, but rather to support the people.

PM Datuk Seri Anwar Ibrahim (centre) clarified that savings from diesel subsidies will benefit the Rakyat as it will be channelled to fund things like public transportation and the STR program.

Anwar acknowledged that the subsidy adjustment is not popular among the public, but insisted it was necessary and was implemented after thorough research and multiple levels of review.  

Earlier, Second Finance Minister Datuk Seri Amir Hamzah Azizan announced that diesel prices would now be announced weekly, following the Ministry of Finance's current practice. He also clarified that the targeted subsidy does not include Sabah and Sarawak. 

Anwar explained that the targeted diesel subsidy was designed to exclude the very wealthy and foreigners, aiming instead to benefit the majority of Malaysians.  "We must assist the majority of the people. We should not provide subsidies to the very wealthy, large industries, and foreigners,” he adds.

Furthermore, Anwar assured that the subsidy would be monitored to prevent misuse and confirmed that the diesel subsidy would be maintained for fishermen, public transportation, and approximately 30,000 smallholders, including vegetable farmers in Cameron Highlands, to prevent price increases.

PM Anwar notes that the government saves up to RM4 billion annually by rationalising diesel subsidies.

Additionally, Anwar highlighted that the government has undertaken three targeted subsidy rationalisation measures: electricity tariffs, floating chicken prices, and targeted diesel subsidies. 

These measures are expected to result in savings of about RM10 billion. He noted that the adjustment of electricity tariffs, which benefited 85% of the population while affecting only the top 15% and foreigners, saved RM4.5 billion annually. KR

Source: Bernama