Govt Studying, Reevaluating Subsidies, Assistance Including Ron95 Subsidy -- Economy Ministry

KUALA LUMPUR, July 12 (Bernama) -- The government is still studying and reevaluating the subsidies and assistance provided to the people, including that for RON95, the Economy Ministry said.

The proposed implementation of the targeted RON95 subsidy will be finetuned from all aspects so that the initiative will run smoothly and increase the effectiveness of aid distribution to the people, it said.

The ministry said engagement sessions will be held with all stakeholders to ensure every aspect is taken into account, including the timeline for the implementation and appropriate mechanism that will enable those affected to receive the proper benefit.

“The government is considering various proposals based on the use case conducted using the Central Database Hub (PADU) system.

“In addition, the social assistance distribution is also being studied to ensure the people, especially aid recipients, are not too burdened by the expected rise in the prices of goods when the government implements a subsidy rationalisation,” it said in a written reply posted on the Parliament website on Thursday.

The ministry was responding to a query from Tan Sri Muhyiddin Mohd Yassin (PN-Pagoh) who wanted to know the mechanism used for petrol and diesel subsidy rationalisation, including the implementation timeline, financial implications and method.

The ministry continued that any decision taken by the government will be communicated clearly to the people to prevent confusion towards policies planned for implementation. 

“For the time being, the focus and priority will be on implementing diesel subsidy until the diesel subsidy rationalisation has stabilised and achieved the objectives set,” it said.

It added that the targeted fuel subsidy initiative, with diesel subsidy rationalisation starting on June 10, 2024, is expected to strengthen the nation’s fiscal position and reduce leakages due to smuggling activities.

-- BERNAMA