Despite Unpopular Decision, M'sia Remains Stable In Facing Challenges Of Global Energy Crisis

GEORGE TOWN, April 11 (Bernama) -- Despite the government's unpopular decision to implement targeted fuel subsidies last year, the move is now seen as helping Malaysia become more resilient in facing the challenges of the global energy crisis, said Minister of Entrepreneur Development and Cooperatives Steven Sim Chee Keong.

Sim, who is also Penang DAP chairman, said that the armed conflicts currently affecting several regions of the world have a direct impact on open economies like Malaysia, which rely on international trade and the tourism sector.

“Today, the world is not just facing economic wars or wars of words, but real conflicts involving the use of weapons, drones, and bombings that are creating an unstable situation on a global scale.

“Although the people in the country may not feel the direct impact, the reality is that this situation affects the economy, including the tourism sector and supply chains," he said while speaking at the Penang DAP Aidilfitri Open House here tonight.

Sim said in this situation, the government needs to make difficult decisions, including implementing the targeted subsidies for diesel and RON95, to ensure that the country's resources can be distributed more effectively.

He said that although this move received criticism at the time, it proved to help the country maintain fuel prices at a controlled rate compared to several other countries that faced sharp increases and supply shortages.

"Malaysians can still enjoy RON95 at RM1.99 per litre, while around 400,000 commercial vehicles receive diesel subsidies and only pay about RM2.15 per litre.

"This shows that decisions that may not be popular at first actually bring significant benefits in the long run," he said.

Meanwhile, the minister said the government is also focusing on the welfare of small and medium entrepreneurs to ensure they remain resilient in challenging economic conditions.

According to him, the ministry has introduced financing schemes such as the People's Business Ramadan Financing Scheme (BARAKAT) and Festive Business People's Fund (BERKAT) to help small traders obtain capital.

"So far, RM35 million has been approved to assist more than 5,000 Ramadan bazaar traders nationwide, including over RM3.3 million allocated to around 400 traders in Penang," he also said.

He added that the government will continue to ensure ongoing support for the micro, small, and medium enterprises (MSMEs) to strengthen the domestic economy in facing global challenges.

--BERNAMA