Industry players expect diesel subsidy rationalisation to have no business impact

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) anticipates that the rationalisation of diesel fuel subsidies will not affect its operational efficiency, project timelines, service delivery, or cost base.

In a statement, the property developer acknowledged that the policy change announcement has prompted queries among stakeholders about the potential impact on the group’s business operations and operating costs going forward.

"MRCB has consistently utilised diesel fuel at commercial rates for all its development and construction projects, including those managed by subcontractors.

"The diesel fuel subsidy rationalisation will therefore not affect our operational efficiency, project timelines, service delivery or cost base," it said.

The group assured all stakeholders that MRCB remains committed to delivering high-quality products and services at competitive prices.

"MRCB wholeheartedly supports the government's initiatives to rationalise subsidies as part of broader economic reforms necessary to foster inclusive and sustainable economic growth over the long term," it said, adding that it firmly believes the measures are critical and will contribute to the prosperity of all Malaysians.

In a separate statement, TH Plantations Bhd (THP) said the diesel subsidy rationalisation will not affect its performance as the company also uses diesel at a commercial rate.

"THP welcomes the Budi MADANI programme announced yesterday to provide targeted diesel subsidies for small agro commodity farmers. This subsidy will benefit small farmers who supply palm fruit to THP's palm oil mills,” it said.

The Finance Ministry said yesterday owners of private diesel vehicles for individuals, small farmers and commodity smallholders from the B40 and M40 groups in the peninsula are eligible to apply for government cash contributions through the MADANI Subsidy Assistance Programme or BUDI MADANI starting today. - Bernama