New Fuel Subsidy System Will Exclude The Rich

"This is why we are looking into putting in place a proper subsidy system so that the revenue we save can be returned to the people." "The government can construct additional hospitals, clinics, and schools," he added. Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub said on Thursday that targeted fuel subsidies for RON95 petrol and diesel would begin next year. He stated that the National Economic Action Council (MTEN) agreed in a meeting on Wednesday to create an integrated database to ensure the initiative's effectiveness.

Salahuddin went on to say that the talks included his ministry, the Finance Ministry, the Transport Ministry, and the Investment, Trade, and Industry Ministry. "All agencies and ministries already have their own databases; all we need to do is coordinate and ensure they are accurate and effective when it (targeted diesel subsidies) is implemented," he said. Prime Minister Datuk Seri Anwar Ibrahim announced on Monday that the government has implemented a subsidy targeting programme in stages, beginning in January 2023, when the government will no longer provide full electricity tariff subsidies to large companies that use a lot of electricity. He stated that targeted and sustainable subsidy management was a top priority in ensuring that government spending is directed towards development needs that add more value to the national economy.

He said the nation’s diesel subsidy system should be improved as the country’s subsidy liability jumped to RM13bil last year.