Govt firm in implementing diesel subsidy rationalisation despite criticisms - PM Anwar

According to Bernama, the government continues to foot the bill for roughly RM7 billion in diesel subsidies. Prime Minister Datuk Seri Anwar Ibrahim stated that the rationalization of diesel subsidies is intended to guarantee more effective management of subsidies, preventing misuse and ensuring that the right groups receive them.

Despite facing criticism, the government must act, Anwar said, particularly with regard to  this matter. He added that targeting diesel subsidies had a positive impact on investor confidence, stock market stability, and the country's Fiscal Responsibility Act implementation.
For the record, on June 10, 2024, the government announced the retargeting of the diesel subsidy through the BUDI MADANI initiative. According to the announcement, the retail price of diesel fuel has been fixed at RM3.35 per litre, up from RM2.15 per litre previously.


Photo: Multiply.
According to the Prime Minister, this action has improved the market following the implementation of the targeted diesel subsidy, which resulted in a 40 sen decrease in fuel prices. He stated that it demonstrates Malaysia's commitment to more robust economic reforms and inspires confidence in investors.
Anwar further stated that enacting subsidies that are not properly targeted strains the country's finances, especially when the wealthy profit from them as well even though they can afford the higher costs.
He used the collapse of the National Health Service (NHS) in the United Kingdom as an example, where massive subsidies to all societal levels eventually became unsustainable.
“Rich people who can afford to pay RM100,000 for their child’s education in a private university but cannot afford to pay RM10,000 in a public university - that is something we need to change. It’s the same in government hospitals, where they (rich people) enjoy first class facilities with minimal fees,“ ​​he said at the Ilmuan Malaysia Madani Forum here on Wednesday.