Three ways to roll out fuel subsidies

Programme to be coordinated by govt machinery

KUALA LUMPUR: An individual’s net disposable income will be one of the three ways that the targeted subsidies for petrol and diesel will be based, says Economy Minister Rafizi Ramli.

He said the second mechanism for the targeted subsidies programme, which will likely start in January next year, would be based on net disposable household income through a social protection or social assistance scheme.

The third would be a combination of household and individual earnings, which would be implemented through a subsidy card, he told the Dewan Rakyat yesterday in response to a question by Khoo Poay Tiong (PH-Kota Melaka) about the type of targeted subsidies.

Rafizi said that the targeted subsidy programme was expected to be implemented after the Central Database Hub (Padu) system is rolled out in January next year.

Padu system for all: Targeted subsidies are slated to begin in January next year, says the government. — RAJA FAISAL HISHAN/The Star

“Besides the form and mechanism of targeted subsidies, the Cabinet will decide on their implementation and follow-up plans,” he said.

“These include a communication plan, an engagement plan and a supporting plan to alleviate the burden of the people, which will be coordinated by the entire government machinery.”

In addition, he said engagements would be held after a Cabinet decision and in accordance with the implementation timeline to balance out speculative inflation.

Last week, Prime Minister Datuk Seri Anwar Ibrahim said a retargeting of the diesel subsidy would be carried out in the peninsula in phases.

The total annual subsidy cost, which had reached RM81bil, had benefited the rich and foreign nationals as well, he said.

Anwar, who is also Finance Minister, said the retargeting would not cover Sabah and Sarawak due to the comprehensive use of diesel in these states.