KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) has clarified that there is no policy paper yet on the implementation of targeted RON95 fuel subsidies.
Addressing the Dewan Rakyat today, Anwar said that while previous studies were conducted on subsidy rationalisation for RON95, the government intends to study the effects of previous subsidy reforms, including those involving electricity, chicken, and diesel.
“We’ll look at the measures we have taken and the people’s reactions (to such moves) before we consider the need (to remove blanket RON95 subsidies),” Anwar said in response to an additional question from PAS MP Ahmad Fadhli Shaari (Pasir Mas-PN).
“What matters is that we must stop the rich and foreigners from benefiting from subsidies. I will not compromise on that. We’ll have to think about which method is most suitable to ensure that the people are not burdened,” the prime minister added.
The prime minister also said that while he is not “rejecting any possibility,” the government’s whole focus is currently on handling the implementation of targeted diesel subsidies.
“Regarding the implementation (of targeted subsidies), we’re taking an approach where we’re open to improving any weaknesses (or) providing assistance where needed.
“We’re not saying that we’re perfect, we acknowledge that targeted subsidies are difficult to implement. If you ask me, (removal of blanket subsidies for) RON95 should have been carried out a long time ago, but it’s not easy.
“The problem is that 3.8 million foreigners use this fuel, and even wealthy people driving Rolls Royce use subsidised fuel. How are we going to resolve this?”
Anwar also said in jest that while the opposition might argue against subsidy rationalisation during their election campaigns, it is widely agreed on that targeted subsidies are a boon for the economy.
“Which government or party would not agree with subsidy rationalisation? When you (opposition) were in government, all of you said that you agree with it, but you weren’t ready to implement it then because you knew it would heat up the political temperature.
“If you say now that (subsidy rationalisation) is needed, but we have to be smarter in the way we implement it, then I can accept (such input) and ask for your feedback.”
On June 29, Anwar said no decisions have been made regarding RON95 subsidy rationalisation, adding that affected citizens can appeal for subsidy assistance.
Previously, the Finance Ministry’s treasury secretary-general Datuk Johan Mahmood Merican confirmed with Scoop that the government remains focused on implementing targeted diesel subsidies before making any announcements about RON95 petrol rationalisation.
Their remarks came after Economy Minister Rafizi Ramli told Bloomberg in an interview that the government might introduce targeted petrol subsidies in a “surprise” move.
RON95 is retailing at a subsidised price of RM2.05 per litre. – July 2, 2024