IPOH: The government is still able to absorb the current cost of RON95 fuel subsidies amid the ongoing West Asia conflict but must remain prepared for a shift, says Muhammad Kamil Abdul Munim.
The political secretary to the Finance Ministry said that while the subsidy is still being sustained for now, no country can continue to withstand rising costs indefinitely while maintaining the same economic policies.
"We must be prepared to shift from one position to another to ensure the economy remains stable and sustainable. However, this does not mean we will neglect the rights and welfare of the people.
"Policies will evolve according to current needs and circumstances," he said at a press conference after officiating a community programme on Saturday (March 28).
He also said the government is closely monitoring developments, including global shipping routes such as the Strait of Hormuz, where Malaysian vessels are beginning to pass through again.
"While there are some positive signs, we must remain vigilant and prepared for any possibility. If the situation continues without a comprehensive resolution, we may face greater risks, including further increases in global oil prices," he said.
Kamil added that measures have already been implemented to adapt to current conditions, including the work-from-home policy announced by Prime Minister Datuk Seri Anwar Ibrahim, which begins with the public sector and is encouraged for adoption by the private sector.
"It is expected to help ease some of the burden on the rakyat. Overall, the situation remains under control, although we cannot escape present realities," he said.
He added that the government meets weekly to monitor the situation to plan appropriate initiatives or economic approaches, including stimulus packages to support the people and ensure economic continuity.
At the same time, he said that Malaysia's resilience so far is due to earlier cost-saving measures and subsidy restructuring.
"The increase in subsidy costs is significant from RM700mil to RM4bil a month. This is a substantial figure and the facts should not be denied," he added.
For now, Kamil said Malaysia remains in a manageable position, even as other countries have raised fuel prices.
In his opening speech, he also said that rising global oil prices do translate into higher profits for PETRONAS, as the company's oil prices increase and generate returns for the country.
"That is true. However, we must remember that we do not rely solely on PETRONAS, as we also import oil to meet our domestic needs," he said.
On whether all of PETRONAS' profits could be used to offset domestic fuel prices, he said the system does not work that way because the dividends paid out are fixed at certain levels.
