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[UPDATED] Targeted diesel subsidy to be implemented, but only in peninsula first: Anwar | Scoop
Prime Minister Datuk Seri Anwar Ibrahim has said that the cabinet agreed to implement targeted fuel subsidies, beginning with diesel but only in the peninsula. – Azim Rahman/Scoop file pic, May 21, 2024
News

[UPDATED] Targeted diesel subsidy to be implemented, but only in peninsula first: Anwar

This is because it is used by almost every family in Sabah and Sarawak, PM adds

Scoop Reporters
Updated
10:25 PM MYT

 

KUALA LUMPUR – The cabinet has agreed to implement targeted fuel subsidies, starting with diesel in the peninsula, to alleviate the financial burden on the most affected segments of the population, said Prime Minister Datuk Seri Anwar Ibrahim. 

During a televised speech this evening, Anwar said this move would exclude those in Sabah and Sarawak to avoid implementing actions that could burden the majority of people there.

“(In) Sabah and Sarawak, diesel is used by almost every family for vehicles, so we postpone any action that could burden the people,” Anwar said.  

Through this targeted diesel subsidy effort, he said the government is expected to save approximately RM4 billion annually.  

However, Anwar did not mention when the target fuel subsidies would be implemented.

Anwar also said the government will provide diesel subsidies to entrepreneurs using diesel commercial vehicles, involving 10 types of public transport vehicles and 23 types of transport vehicles under the Subsidised Diesel Regulation System.

diesel-perutusan
10 types of public transport vehicles and 23 types of transport vehicles will be included in the Subsidised Diesel Regulation System to provide subsidies to entrepreneurs. – Screen grab, May 21, 2024 

“For (those in the) B40 and M40 (bracket) using diesel for their small businesses or those in the farming, mining, or fishing sectors will continue to be assisted so as not to be affected by this increase. 

“Those unable to benefit from the targeted diesel subsidy are the T20, or the richest class – and the 3.8 million foreigners (in the nation),” he said. 

Should people still be burdened by the diesel subsidy implementation, Anwar said they may refer to the Transport Ministry and other relevant ministries to ensure that the targeted subsidy only affects the rich and foreigners.  

“I expect certain quarters will (make an issue out of this) and God-willing, the cabinet will answer. Any subsidy should not burden the people.  

“Why must we do this? Because we cannot provide subsidies to the rich and foreigners.” 

Previously, foreign media reported that diesel prices would be floated according to market prices in the weeks following the Kuala Kubu Baharu by-election on May 11, citing industry and government sources. 

It also claimed that the move would be followed by a gradual increase in the retail price of petrol.  

However, Anwar criticised the reports, saying that no final decision has been made at the cabinet level regarding the issue. 

“I found recently, maybe because of our firm political stance, the neighbouring and international media continue to attack in terms of negative news, for example, the casino development issue (in Johor)…it was never discussed and never reached my attention, but it became a hot issue. 

“Then, the issue of withdrawing diesel subsidy, although there was initial discussion, there was no final decision regarding the implementation date. 

“The method needs to be explained. The principle is that it does not burden the people,” he said. – May 21, 2024 

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