According to a report by The Star, RON 95 fuel subsidies will be implemented by the second half of next year and will be done in stages. Domestic trade and consumer affairs minister Datuk Seri Saifuddin Nasution Ismail said companies are able to partake in the request for proposal to prepare a system for the subsidies.
As reported previously, the exercise is being handled by the finance ministry, and will involve developing, testing, implementing, studying and operating the system. “The government will choose the most competitive proposal,” said Saifuddin during Minister’s Question Time session.
The minister was responding to a question from Azrina Surip, who asked whether the targeted subsidy system can be implemented before the second quarter of next year.
“I am optimistic it can be implemented by the second quarter of next year. We want to implement it in stages or sort of a trial run to prepare the public to get used to the new system. We also want to ensure that the new system is seamless so that the implementation will be smooth,” Saifuddin said, adding that his ministry is gathering feedback from all players.
During the tabling of Budget 2019, finance minister Lim Guan Eng said the fuel subsidy was targeted at the B40 group (salary of below RM3,000 monthly) and that a mechanism of the scheme would be worked out to prevent abuse. It was announced that owners of multiple/luxury cars will not benefit from the fuel subsidy.
The scheme will offer a subsidy of 30 sen per litre up to 100 litres a month, for cars with an engine capacity of 1,500 cc and below. Meanwhile, motorcycles with an engine displacing 125 cc of capacity or less will be allocated the subsidy at the same rate of 30 sen per litre, for up 40 litres a month.
