Govt Ensures Targeting Of Subsidies Doesn't Burden The People

KUALA LUMPUR, Jan 28 (Bernama) -- The government will ensure that the targeting of subsidies does not burden the people, thus enabling the government to increase the allocation of targeted aid to the people in an effort to strengthen a more inclusive social protection network.

The Finance Ministry said in a reply on the parliament website that this would further increase the people's disposable income, which would directly provide positive benefits to the country's economic environment in line with the MADANI Economic Framework.

"The government has taken bold steps since 2023 by implementing subsidy targeting such as electricity subsidy targeting, diesel subsidy targeting, chicken and egg price floating and RON95 subsidy targeting.

"Floating the price of chicken and eggs does not affect the supply and stability of chicken and egg prices in the market," it said.

It added that through the targeting of diesel subsidies, fleet card facilities have been given to public vehicles and selected goods transport to enable them to continue to obtain diesel supplies at a subsidised price of RM2.15 per litre.

It added that cash assistance of RM200 per month was also provided to eligible private diesel vehicle owners, farmers, breeders and smallholders.

For the targeting of the RON95 subsidy, Malaysian citizens aged 16 and above are eligible to enjoy RON95 petrol at a subsidised price of RM1.99 per litre, in addition to the BUDI95 eligibility having been expanded to registered fishermen, private boat owners in Sabah and Sarawak, e-hailing drivers and airport taxis.

The ministry was replying to a question from Mohd Syahir Che Sulaiman (PN-Bachok) on the net impact of subsidy rationalisation on the purchasing power of B40 and M40 households, including in terms of administrative costs, leakage and the targeting mechanism used.

-- BERNAMA