Government Stands Firm on Diesel Subsidy Targeting Despite Criticism – PM
By Loshinniy Nair S . Baskaran,
26th September 2024: The government remains committed to implementing targeted diesel subsidies, despite receiving criticism. Prime Minister Datuk Seri Anwar Ibrahim emphasized that the initiative has strengthened investor confidence, stabilized the stock market, and reinforced the country’s Fiscal Responsibility Act.
During the MADANI Malaysian Scholars Forum, Anwar stated that since the introduction of diesel subsidy targeting, diesel prices have decreased by 40 sen, positively impacting the market. He explained that poorly targeted subsidies would strain the nation’s finances, particularly when the wealthy also benefit from these subsidies.
He further highlighted the disparity by comparing the ability of affluent individuals to pay high tuition fees at private universities but still benefit from low public university fees and first-class services in government hospitals at minimal costs. Anwar stressed the need for reform, mentioning how broad subsidies can lead to unsustainable models, citing the UK’s National Health Service (NHS) as an example.
Malaysia, which has the lowest tax base in Asia, faces challenges in balancing these reforms. Anwar called for practical decisions to ensure financial sustainability while addressing the needs of the population. He concluded by reinforcing the government’s commitment to continue economic reforms, especially in the area of subsidy management.
The Prime Minister’s stance reflects the administration’s efforts to rationalize public spending and reform the economic system while ensuring targeted assistance benefits the most vulnerable sections of society, as stated in Buletin TV3.
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