Diesel subsidy not abolished; Malaysian govt still bears $2b in subsidies: Anwar
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Malaysian Prime Minister Anwar Ibrahim explained that subsidies have not been abolished.
PHOTO: REUTERS
KUALA LUMPUR – The government still bears around RM7 billion (S$2 billion) in subsidies related to diesel in Peninsular Malaysia, said Prime Minister Anwar Ibrahim.
He explained that subsidies have not been abolished. The diesel subsidy rationalisation aims to ensure more efficient management of subsidies, preventing misuse and ensuring they reach appropriate groups.
“The main goal of the diesel subsidy rationalisation policy is to ensure that subsidy wastage no longer continues while ensuring that the savings are returned to the wider population,” he said in a statement on June 17.
Datuk Seri Anwar said savings from the implementation of targeted subsidies would be returned to the people in the areas of education, health, public transportation and other sectors that have the greatest impact on the public.
According to him, the government would also remain committed to combating diesel smuggling while striving to balance such efforts with issues of supply and the cost of living.
Since June 10, Malaysia has cut diesel subsidies
Mr Anwar had earlier cautioned owners of commercial vehicles benefiting from subsidies against price hikes. Citing school buses, he said those who raise prices despite benefiting from diesel subsidies risk losing their licences.
To date, 10 companies have been given written notice by the Domestic Trade and Cost of Living Ministry for increasing the prices of goods and services.
“The identified companies will be asked to explain their price hikes on goods and services,” said Minister Armizan Mohd Ali in a statement on June 14.
He said the 10 companies comprise three transport companies, three construction companies, two beverage companies and two machinery rental companies.
But express and tour bus services have stopped receiving diesel subsidies since June 10.
Industry players said prices could rise between 15 per cent and 30 per cent due to the sudden implementation of rationalised diesel subsidies. THE STAR/ASIA NEWS NETWORK
