Economy Minister Rafizi Ramli in Parliament today revealed that the government is currently assessing the need for subsidy rationalisation for RON95. However, the focus and priority for now is on the implementation of targeted subsidies for diesel which started on 10 June.
According to Berita Harian, Rafizi said that the study on RON95 subsidy rationalisation is to strengthen the country’s fiscal sustainability and reduce leakages in the distribution of diesel subsidies. He added that should the RON95 targeted subsidy be implemented, the government will take appropriate measures to ensure those affected will be given assistance.
The Economy Minister stressed that implementing subsidy rationalisation will also help the government strengthen its fiscal position and optimise its available resources. He assured that savings from the targeted subsidy initiative will be returned to the people through the implementation of programmes and projects that are more beneficial.
These include improvements in the provision of social services and public facilities, including health, education, transport and security. In a separate statement, Rafizi said that the realignment of fuel subsidies is expected to have an impact on Malaysia’s inflation, though a well-designed strategy together with targeted cash assistance will help reduce the impact.
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