As the Unity Government rolls back subsidies, Econimic Minister Razifi Ramli has reminded the public that across the board subsidy does not work but the government will instead choose to implement targetted versions.
A contentious and rather tricky move by the incumbent administration that just about reached 1 year old. However, the Economic Minister is moving ahead with the removal and has announced that he will roll out the targeted RON95 subsidy programme in the second half of 2024.
The Minister when announcing the move stated that those in the top 20 (T20) income group are receiving 53 percent of blanket fuel subsidies and that it is not a sustainable model, nor is it an equitable one…ouch this will surely irk some of the group in the society.
“These efforts are in line with the government’s position of widening the fiscal paradigm we work in he added.
“Given our public finances have run a fiscal deficit of more than 5 percent for three consecutive years, we must find new avenues to mobilise our resources and reduce wastages within the system,” he said.
Rafizi said implementing the subsidy retargeting programme by the end of 2024 would immediately translate into a better fiscal position for the country.
Malaysians enjoy among the lowest petrol prices in the region due to subsidies provided by the government, so much so that neighbouring country vehicle owners drive into the country to pour their petrol.
It remains to be seen how the new government will implement the targeted and what the category will be based on.
