Salahuddin: Implementation of targeted fuel subsidies for RON95 petrol, diesel set to begin next year

KUALA LUMPUR: The implementation of targeted fuel subsidies for RON95 petrol and diesel is expected to begin next year, says Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub.

He said the National Economic Action Council (MTEN) agreed in a meeting on Wednesdsay (May 17) that an integrated database should be prepared to ensure the effectiveness of the implementation of the initiative.

He said the discussions involved his ministry, the Finance Ministry, Transport Ministry and Investment, Trade, and Industry Ministry.

“All agencies and ministries already have their own databases, we just need to coordinate and make sure they are accurate and effective when it (targeted subsidies for diesel) is implemented,” he said.

Salahuddin said this to reporters after attending the launch of the 2023 Franchise International Malaysia (FIM) Exhibition and Conference at the Kuala Lumpur Convention Centre here Thursday (May 18).

The integrated database or Central Database Hub (Padu) is expected to combine as much socio-economic information as possible for each household to help the government formulate policies and target subsidies.

On Monday (May 15), Prime Minister Datuk Seri Anwar Ibrahim said the government has implemented a subsidy targeting programme in stages starting from January 2023 when the government will no longer provide full electricity tariff subsidies to large companies that use a large amount of electricity.

He said targeted and sustainable subsidy management is a priority in ensuring government spending is channelled to development needs that can provide higher added value to the national economy.

Anwar, who is also the Finance Minister, said the nation’s diesel subsidy system should be improved as the country’s subsidy liability jumped to RM13bil last year.

In February, Deputy Finance Minister Datuk Seri Ahmad Maslan was quoted as saying that the government could save up to RM17bil if the T20 income group was not given petrol, diesel and liquid petroleum gas (LPG) subsidies.