Targeted RON95 subsidy rollout delayed due to further tweaks in mechanism, says Fahmi


KUALA LUMPUR: The government’s plan to implement targeted subsidies for RON95 petrol has been slightly delayed due to the need for a more detailed review of the mechanism, says Datuk Fahmi Fadzil.

The Communications Minister said the government is currently fine-tuning every aspect of the policy to ensure that its implementation will not have an adverse impact on the public.

Fahmi said Prime Minister Datuk Seri Anwar Ibrahim had also addressed the matter during the recent government retreat involving Members of Parliament.

“The Prime Minister expressed his view that he does not want the implementation of any policy to negatively affect the majority of the rakyat.

“It is this process of fine-tuning that has resulted in a slight shift in the timeline,” he told a weekly press conference at Parliament on Monday (July 21).

Fahmi, who is also the government spokesperson, said several adjustments had already been made to earlier policies to avoid placing undue burden on the people.

“That is one of the reasons why, following the implementation of measures such as the diesel subsidy rationalisation and other efforts, we found it necessary to re-examine the subsidy delivery mechanism.

“In the same spirit of minimising impact, even the expansion of the sales and services tax (SST) underwent further refinements after it was announced.

“The same approach applies to policies that have yet to be implemented but were previously indicated including the targeted subsidy for RON95,” he said.

The rationalisation of the RON95 subsidy was initially expected to be introduced by mid-year.

Earlier this month, Second Finance Minister Datuk Seri Amir Hamzah Azizan said the government was in the final stages of preparing for its implementation.

The move is part of the government’s broader fiscal reforms aimed at curbing leakages and ensuring that high-income groups and businesses contribute more fairly to national revenue.

On a separate matter, Fahmi said the Transport Ministry will be introducing stricter enforcement measures on bus safety following last month’s tragic crash that claimed the lives of 15 Universiti Pendidikan Sultan Idris (UPSI) students.

He said Transport Minister Anthony Loke had presented preliminary findings on the incident during the Cabinet meeting last Friday, and that follow-up enforcement actions would be taken soon.

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