IPOH: The government is still able to sustain the RON95 petrol subsidy for now, but is prepared to adjust its policy if costs continue to rise due to the Middle East conflict.
Political secretary to the Finance Minister, Muhammad Kamil Abdul Munim, said being prepared is crucial to ensure economic stability without neglecting public welfare, despite the risk of rising global oil prices.
"For now, the subsidy is still being maintained, but we must be ready for any possibility. No country can withstand rising costs if it continues with the same economic approach.
"We need to adapt according to current needs to ensure the overall economy remains stable. However, this does not mean neglecting the rights and welfare of the people, as policies will be adjusted based on the situation,” he said on Saturday (March 28).
He added that Malaysia is coping due to cost-saving measures and subsidy restructuring implemented earlier, but noted the significant increase in subsidy costs, which rose from RM700mil to RM4bil a month.
On Petronas’ profits following higher global oil prices, Muhammad Kamil said Malaysia still needs to import oil to meet domestic demand.
"We do not rely solely on Petronas’ oil, as we import to meet our needs. Not all Petronas profits can be used to subsidise domestic fuel prices.
"The dividends provided are limited and are used to support fuel pricing and Petronas’ operational needs,” he said.
Meanwhile, he described the proposal to hold a special briefing for opposition leaders next week as appropriate.
On Friday (March 27), Prime Minister Datuk Seri Anwar Ibrahim said the government plans to convene top state leaders and political party representatives for a special briefing next week to address the Middle East crisis. – Bernama
