SERDANG: The government has no plans to cut fuel subsidies for the T20 group for now, says Anthony Loke.
The Transport Minister said that since the government needs a straightforward system for handling the fuel crisis, the Budi Madani RON95 (Budi95) remains for all household-income groups.
Loke was speaking to the media after officiating the 7th edition of Malaysia Commercial Vehicle Expo (MCVE) at the MIECC here Thursday (April 14).
“Budi95 is a simple system that allows all Malaysian citizens, using just their MyKad, to enjoy fuel subsidies within a controlled environment and controlled quantity.
“This is also meant to minimise leakages. So, we are maintaining that system. There are no plans to cut subsidies for the T20 group for the time being.
“As I mentioned two days ago, the government has always talked about subsidy rationalisation but the most important thing is finding the best mechanism.
“The principle behind the government’s Budi95 policy is to make the system as simple and direct as possible.
“We have simplified the entire process. The Cabinet has deliberated on this for a long time, and most Cabinet members agreed that it must be a simple system,” said Loke.
The DAP secretary-general said this in response to recent calls by MPs from his own party who defended the need for high-income earners to continue receiving Budi95 after calls from several parties to relook at subsidy rationalisation by targeting those who could afford to pay more.
On users who may have fallen within the gaps such as tow truck owners, Loke concedes that the current system cannot cover everyone.
“There is no system that can cover 100% of cases. It is impossible for everything to be fully covered under subsidies.
“But I think most essential goods and essential industries are covered under the current subsidy system.
“Most commercial vehicles, especially those carrying essential or containerised goods, are receiving diesel at subsidised rates.
“I think the system has worked well over the past two months. Most importantly, we have ensured diesel supplies remain stable.
“In Malaysia, we do not have a supply problem,” said Loke.
