The government knows that fuel subsidies are important to the people and will continue to provide subsidies on four controlled items to help reduce the country’s inflation rate, said minister in the PM’s department (economy) Datuk Seri Mustapa Mohamed. The four items are cooking oil, petrol, diesel and liquefied petroleum gas (LPG).
“Our country is now moving into the endemic phase and despite having a little pressure following the uncertain inflation rate, the government can still manage the rate. This is due to government efforts and assisted by the relevant agencies,” the Jeli MP said, reported by NST.
“To maintain this, the government will continue to monitor the situation from time to time,” he said, adding that the country’s inflation rate was at 2.2% in March, which is still low compared with the USA which recorded an 8.5% inflation rate and Europe at 7.5%.
The inflation rate is set to rise though. “The country’s inflation rate is expected to increase following the rise on Producer Price Index (PPI) of 11.6% and also due to the pressure of inflation rate at the global level. In February, the PPI was at 9.7%. If the rate increases, which it normally will, it will cause inflation… hence, the government will monitor this closely,” the veteran minister said.
While fuel subsidies will not be scrapped in Malaysia, we should expect a more targeted form of it in the near future, as opposed to the current blanket subsidy. A more targeted approach would continue to cushion the impact for those who need the help, such as the B40 group, while reducing the country’s subsidy bill, which is unsustainable. Although Malaysia is an oil producing country, every US$1 increase in crude prices chips away RM410 million from the nation’s coffers.
It’s no secret that the government is looking to replace the current blanket style – ‘targeted’ has been mentioned before and was reiterated by Mustapa last month.
“Those who can afford should pay more and the people who do not deserve (the subsidy) should not be given the subsidy at all. Subsidies are meant for the poor people, particularly the B40 (bottom 40% income group). The issue is the timing of when it is going to be implemented,” Tok Pa said.
He added that fuel subsidies has played an important role in moderating inflation in Malaysia, and the government has been able to maintain price increases of between 2% and 3% for the last 10 to 20 years. “However, it will be a big strain on the budget. When we outlined our budget last year, the estimate was about RM5 billion in subsidies. Now the estimate is somewhere around RM30 billion, representing a sixfold increase in the amount of subsidies,” he said.
Looking to sell your car? Sell it with Carro.
Ron97 nearly RM4/L.
Ron 95 still keep @ RM2.05/L.
Syukur, buy 1 Free 1 Petrol price. Nearly 50% subsidy…
But some car very makan minyak…
No need EV or hybrid for now. RON95 still cheap
Wait, after election, shall sing another song.
Few moons ago,this dude said gomen working on targeted subsidies ,mainly benefitting B40.
Eh,now singing another tune?
Come on,Mr.Menteri if you r not damn sure..dont give conflicting press conference.
I think there must be an avalanche of backlash after his first press release from M40 and T20.
Stop segregating the rakyat.Work on more wholesome approaches to achieve a win win formula,faham?
Today, subsidy of Ron95 help the logistic market too.
Many rider and driver, supporting shopee, Lazada, grab, airasia ride, food panda, etc.
The salary range can reach M40.
In fact, today most M40 also just hardly have enough savings.
Cheap Ron95 and Diesel
To ensure stable business expenses, stable inflation.
Call me a skeptic, but when a policy is made to cover certain groups, it always results in more division than unity.. I hope a better solution is found instead of this.
No need to subsidize fuel at all. Who force B40 to drive if not afford to pay for fuel? They can ride motorbike!
Easy loans to push car ownership
Ok nice. Harga brg akan naik.
The RM will devalue if fuel subsidy continues.
Its better to have a stronger currency than keep on subsidising fuel.
Our neighbours are paying market price or more for fuel for more than 10 years already, we must follow them or our currency and economy will collapse.
The B40 need subsidies?
What if I told you that it’s not just the B40 but the B40, M40 and maybe up to half of T20 need fuel subsidies?
Wealth is concentrated in the T1 (or higher) if you would only track it- which you won’t- so all this bull about helping the B40 isn’t coming out of the pockets of the rich, but out of the middle classes.
Make sure only kapchai pump cheap petrol. This is energy efficient vehicle for poor, even better than EV.