TARGETED DIESEL SUBSIDY: BOLD STEP TO MANAGE SUBSIDY MORE EFFICIENTLY - ACADEMIC

KANGAR, July 5 (Bernama) -- The government’s decision to implement the diesel subsidy targeting measure, despite being considered as unpopular, is a bold step for more efficient national subsidy management in the long term.

Universiti Malaysia Perlis (UniMAP) Business and Communication Faculty senior lecturer, Associate Prof Dr Mohd Zukime Mat Junoh said people need to realise that the management of national subsidies is critical at the moment, therefore the targeting of subsidies is for the welfare of the people in the future.

“The government measure is not popular but it will give positive results in the management of national subsidies in the long term, thereby contributing to the GDP (gross domestic product) and returning benefits to the people," he told Bernama.

Mohd Zukime said the benefits of rationalising targeted subsidies for the long term include being able to develop an inclusive economy by promoting economic diversification to reduce dependence on certain sectors as well as ensuring more job opportunities.

"Additionally, it can increase investment in basic infrastructure and technology to stimulate sustainable economic growth," he said.

He also suggested that the government take a holistic and inclusive approach to the public’s reaction to subsidy targeting, including through a clear information campaign for the people.

“The people need to understand the rationale behind the decision including how it will benefit them and the economy in the long term,” he said.

Apart from this, Mohd Zukime said close monitoring of the Budi MADANI assistance needs to be carried out from time to time so that the right target groups receive the targeted subsidies.

Meanwhile, Badrul Hisham Abd Rahman, senior lecturer at the Perlis Islamic University College’s (KUIPs) Muamalat and Islamic Finance Faculty said the implementation of the targeted diesel subsidy is to ensure fiscal sustainability and encourage more efficient use of fuel.

He said government aid for the people should be targeted efficiently and fairly according to the industry usage rate which can be implemented through the Central Database Hub (PADU).

“Data from the PADU system can be used to identify the target groups. In theory, the rationalisation of the diesel subsidies is a catalyst for PADU's ability to manage the country. If applied correctly, PADU is able to offer enough information to make critical decisions," he also said.

He is also of the view that the government needs to manage the public’s reaction to the diesel subsidy targeting through a multi-faceted and comprehensive approach that includes effective communication with reasonable justification and being acceptable to the people.

-- BERNAMA