Gradually increasing petrol prices is the answer to reducing Malaysia’s fiscal deficit, according to Datametrics Research and Information Centre (DARE). In a report by FMT, the Malaysian-based think tank says this approach is more effective compared to introducing targeted subsidies and will allow the government to directly assist those in the lower-income groups.
DARE managing director B Pankajkumar said by increasing petrol prices to align with the market price, the government can significantly reduce its petrol subsidy, which can instead be used to provide direct cash transfers to the bottom 50% of society. “The approach involves gradually increasing petrol prices every quarter by 20 sen per litre, or to reach RM1 above the market price within the next two years,” he explained.
“That’s your answer in terms of tackling your budget deficit. Imagine the amount of savings you can make by putting petrol price back to where it should be. To me, why bother going to a different system (of targeted subsidies for petrol). It’s not proven, it takes a lot of effort, and there will be leakages,” he continued, adding that a different system would likely require the government to spend more in terms of administration.
Following yesterday’s fuel price update, RON 95 currently retails at its ceiling price of RM2.05 per litre, while the price of RON 97, which is floated according to market prices, is at RM3.47 per litre. Using the latter as a benchmark, it can be assumed the actual price of RON95 would be around the RM3.30 mark.
Pankajkumar also pointed out that Malaysia is listed as the country with the ninth lowest fuel price globally. Our neighbour Singapore, for instance, prices its base petrol fuel at the equivalent of around RM10 per litre.
“Prime minister Datuk Seri Anwar Ibrahim mentioned Malaysia is expected to spend RM81 billion for subsidies this year. Last year’s figure was RM62 billion, of which RM45 billion was related to fuel subsidy,” Pankajkumar said.
Anwar will table Malaysia’s Budget 2024 this Friday, October 13 at 4pm, and it is expected that measures will be announced to reduce public debt by steering the economy away from decades of blanket subsidies. Do you agree with DARE’s stance on this matter? Is increasing fuel prices better than introducing targeted subsidies, or is there another way?
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Anwar menang, subsidi hapus
1.Rafizi n Co already spent juta juta Rm on the PADU system.Unlikely he will u turn.
2.Just like the 750juta Rm reportedly spent on nasi lemak machines,it is a mega project getting PADU up n running…which can be “abused” if info goes to wrong hands.
3.Just give B40 and lower M40 the ‘special ID card”
Higher M40 and T20..pay market prices.
4.Even with savings say 20-30 Billion RM from targetted fuel subsidies,where r the savings going? To cronies or building more hospitals to release the severe overcrowding there?
Let’s gip it a try after we embezzled Minyak peket & Textbook contract. kikikih
Ape think-tank ni?
20sen tiap2 bulan
semua akan kena
Refer my name
Refer Restoran Jai Hind
Hanya org bodoh dan kurang cerdik je percaya dengan kerajaan ni. Rasakan hahaha…
Tahun lalu, abah pernah memberitahu para pemberita bahawa kerajaan mampu menjimatkan perbelanjaan sebanyak RM20 billion setahun melalui pelaksanaan skim subsidi bersasar, kerana tanpa skim tersebut, hanya 20 peratus subsidi yang disediakan kerajaan digunakan oleh golongan B40, manakala selebihnya dinikmati oleh golongan yang tidak sepatutnya, dimana hampir 50 peratus daripada subsidi kerajaan digunakan oleh orang dalam kategori yang berada, orang kaya, kenderaan besar dan macam-macam lagi.
Apa boleh buat. Sudah geng dengan perasuah. Hadap jelah dengan KERA jaan MAhal DAh NI yang temberang ni. Dulu cakap lain, sekarang cakap lain.
Adakah kamu masih lagi berpendapat yg penubuhan kerajaan perpaduan ini yg telah dicadangkan oleh DYMM YDPA menurut perlembagaan negara, tidak sepatutnya berlaku?
Mythomania bermaksud kelainan psikologi yang menyebabkan seseorang mempunyai perilaku berbohong secara terus-menerus dan dalam jangka waktu yang lama.
Berikut adalah ciri-ciri mythomania:
– Pembohongan mereka tidak mempunyai kelebihan tertentu
– Kisah biasanya dramatik, rumit, dan sangat terperinci
– Biasanya mereka menjadi penyelamat atau mangsa utama dalam cerita
– Mereka percaya bahawa kisah mereka benar-benar berlaku
– Pembohongan diceritakan berulang kali.
Sudah jelas bahawa kamu ni dah kenal sangat dgn ‘mythomania’ kerana kamu masih berbohong dgn diri sendiri yg kamu ni PM Zimbabwe, sedangkan jawatan PM Zimbabwe sebenarnya tidak wujud lagi sejak 10 tahun yang lalu bila perlembagaan Zimbabwe diubah.
It’s definitely an easier mechanism. Raise the prices for everyone and then use existing assistance schemes to provide aid to the B40 and M40. Let’s see what the new fuel pricing mechanism will be (scheduled to the announced during the Budget and expected to go-live in Q1 ’24).
Yes, should sell RON 95 at RM3/litre for now
Increase to RM5 per liter, less rempit, less idiots racing, less jam, just let us drive peacefully, force B40 to take public transport to work
Never trust any politician when they’re fighting for power.
Just follow the Singapore model. And we will prosper like them. No corrupt ministers like in UMNO.
The price of everything will go up. That’s what PH voters want, hahaha.
Are you assuming that just because the rich bosses of companies that sells goods to the common folk won’t qualify for subsidized fuel and thus pass their higher fuel costs to the consumers by increasing prices?
If so, you’re already missing the point that consumer goods are transported by commercial vehicles, not by the personal vehicles of these rich bosses, and commercial vehicles should still qualify for subsidized fuel.
Baby must be weaned off milk. But the parent who stops giving the baby milk is the hated one even though it is the right thing to do.
The parent who let’s the baby drink milk brings up a spoilt child who is still on milk in their teens. Development/growth is stunted and the child is the laughing stock of his/her class. But that is the good parent lah I guess.
This is all what PH voters want. GST, targeted subsidies, and corrupt politicians in cabinet. Just accept that without arguing with me.
At the time of GE15 late last year, the government debt & liabilities was already heading towards RM1.5 trillion. With the country’s population of 30 million plus, that would be about RM50k debt for each citizen. Unfortunately, there is among some of the rakyat who have the childish mentality that the govt debt has nothing to do with them & thus continue to expect handouts from the govt.
Tax the rich, help the poor
Padan muka to all PH voters. Serve them right!
memang padan muka and corruption still rampant non stop….unless law is like singapore ..no shit given…no double standard, here different people different law…mampus la
targeted subsidy is better than a blanket increase in the petrol price. whenever there is a blanket increase, the prices of goods will see a blanket increase. now the cost of living has increase more than people’s salary. our salary is too low.
when complaint about salary is low, increase salary frequently are bound to goods increase as well.
yup… once the fuel ceiling price is increased, the public will adjust their lifestyle themselves.
Targeted subsidy won’t work because there is just no mechanism to ensure fairness.
Forget about pleasing the voters.. GE will only come after 4 years. Orang Malaysia mudah lupa by then anyway.
Most started to attacking PH, it shows how naive is Malaysian. Our politicians (except for PAS maybe) realized and acknowledged that our deficit is a big problem to the country. Some politician chose to sweep it under the carpet; some chose to make changes for good but blamed by the rakyat. Wake up Malaysian, if no change that place soon, we will all die together, no matter you’re B40 or M40 or T20.
Plz cut all subsidies and give the savings to the rakyat in cash. 81B subsidies a year is crazy amount…If given to the rakyat each of us can get RM2500 person each! Some ppl here think PN will not cut subsidy if they are the govt. pls wake up! No matter which govt. they still face the same problem with subsidy. Think before making a fool of yourself.
Stop government leakage, we can save even more
What leakage?
This is not think thank,
No thinking at all,
No thanks.
I’m all in to sell fuel at market price. This clown show called the fuel subsidy has been going on for too long and it’s burning our nation’s coffers.
When petrol is RM5 suddenly all the EV poo poo boys will be driving EVs. Oops
ERALIER M’SIA GOVERMENT DISTURBED RON 97.
NOW DISTURBING RON 95.
DOESN’T MAKE ANY SENSE AT ALL SINCE OUR COUNTRY IS PRODUCING PETROL GGODS.
HOW LONG THIS MALAYSIAN GOVERMENT WANTS TO STEAL PEOPLE’S $$$$?
I DIDN’T SEE THIS TYPE ISSUE IS OCCURD IN GULF COUNTRY FOR THEIR PEOPLE’S.
ONLY GOD’S KNOW’S
pigi mampus lagi baik…..business will take every opportunities to increase price every 3 months…
Then have GE every 3 months and see what Malaysians really think
Blanket rise in fuel price will involve rise in transportation cost. This will wipe out any financial aid given to B40 earlier. Target the fuel subsidy. Use existing data infrastructure like My card to pinpoint users.
You guys keep complaining about debt. What has the new government done to reduce the debt? Did they bring in new investors? Are they helping the rakyat? Are the eggs, rice and sugar now more attainable by common folks? You guys assume all T20 are earning 10k or 20k salary per month. What about the T20 with measly household income 10-12k per month? These are the groups that are supporting other family members, paying wages for odd jobs, opening small businesses, supporting their own small families, etc. If every subsidy is taken from us, it will be hard for all of us, not only T20.
I for one am disappointed with this new government. Education, Agriculture, Finance, etc. are all going down the drain. Even justice is not meted out fairly against corrupt minister. I believe many will not make the same mistake. Especially T20.
I think this is the most sensible implementation, increase price.
I am against different pricing for different people.
Imagine you go macdonalds and someone buy the same burger but cheaper bcos they are b40.
Balance of wealth should be at the income level, i.e income tax. After tax, everyone is entitled to spend their money without any price discrimination. People are already paying higher tax if they earn more, why still need to pay more for goods?
Not to mention is very difficult to implement and subject to abuse.
No issue gradually reducing the subsidy but concern the savings will NOT reach the needy, instead end up dont know which white elephant project. Then how?
Why Paultan created this website in 3 languages while many of them like to use other languages in this English website?
Got money, drive car, no money ride bike. Still can not afford, ride bicycles!
You voted a goverment that tells you this?
Dunno good or bad, but can cfm the malaysians too pampered with all kinds of subsidies n became so reliant on it. I’m good for a change if the past did not brought us any better.
Want an easy mechanism? Just increase income tax for T20 by 10% lah. If not enough, another 20%. Just leave the B40 & M40 alone. Wtf!