KUALA LUMPUR – Datuk Seri Anwar Ibrahim assured that 85% of the population in Malaysia will not be affected by the targeted subsidy for RON95 petrol, expected to be implemented by mid-2025.
The prime minister questioned the need for any objections, as the aim of the subsidy targeting is to support ordinary Malaysians, not the wealthy or foreign nationals.
Anwar, who is also Finance Minister, explained that, previously, the government had been “generously” providing RM8 billion in subsidies each year to the rich and foreign nationals.
“Don’t worry, 85% of the population will still receive subsidies, but the wealthy 15% will have to pay a little more. Ordinary people will still pay RM2.05. So why should we object?
“I’m telling you upfront. I want to ask: the price increase, who is it for? It’s for the rich. Why are you so concerned? Who do you represent, foreign nationals or the wealthy?
“If you represent the Malaysian people, you should support efforts that don’t burden the rakyat but collect fair prices from the wealthy, so that the funds can be used for the people,” he said.
He made these remarks while officiating at the Madani Rakyat 2024 ‘Sayangi Sabah’ programme in Likas, Sabah, today.
On Friday, during the presentation of Budget 2025, Anwar said the government plans to implement the targeted RON95 petrol subsidy by mid-2025.
The Pakatan Harapan chairman explained that the savings generated from this initiative would be directed towards improving the welfare of the broader population.
Elaborating further, he noted that only 15% of Malaysia’s population, consisting of the wealthy and foreign nationals, would be affected by the subsidy targeting.
Currently, the price of RON95 in Malaysia is RM2.05, compared to neighbouring countries like Thailand at RM5.85, Indonesia at RM3.38, Singapore at RM9.02, and Saudi Arabia at RM2.66.
“Petrol in Malaysia is the cheapest compared to Singapore, Thailand, Indonesia, the Philippines, and even Saudi Arabia. In Saudi Arabia, the price per litre is RM2.65, compared to RM2.05 in Malaysia.
“Right now, we are helping with subsidies. How much in subsidies? If we don’t change the subsidy targeting, it will cost RM20 billion a year. What does this subsidy mean? It means the government is helping to prevent price increases.
“Who should the subsidy be for? For the less fortunate. But currently, petrol subsidies also go to foreign nationals, even those without identity cards, and to the wealthy with five bungalows and millions in profits. Yet, we still provide petrol subsidies to them,” he said. – October 19, 2024