PM gives special committee two-weeks to review the implications of targeted oil subsidies

PUTRAJAYA- A special committee has been set up to look into the implications of targeted oil subsidies.

Prime Minister Datuk Seri Anwar Ibrahim has given two weeks for committee to examine and study the implications of the move.

Currently, some of the subsidies implemented such as oil and electricity tariffs are used by all including the wealthy and large industries.

Anwar said discussions will also be held with those in the industry, the private sector and interested investors so that they understood that the oil subsidies implemented are aimed at easing the burden of the people.

" I have no problem with subsidising, but it has to be targeted. Otherwise oil subsidies will benefit all including the wealthy.

" This also involves electricity tariffs. In the figures presented the benefits received by the needy are almost the same as the rich ( at a cost) of around 2.5 billion. For me it's not reasonable. Its a subsidy but its benefitting all.

" The electricity subsidy we will continue as I do not want to burden the people. I will give the special committee two weeks to look into all the implications,"

Anwar was talking to reporters after chairing the 2022 National Action Council on the Cost of Living special meeting held at the Prime Minister's office on Sunday.

Also attending the meeting was chief secretary to the government, Tan Sri Mohd Zuki Ali, Bank Negara governor Tan Sri Nor Shamsiah and officials from the Department of Statistics, Ministry of Domestic Trade and Consumer Affairs, Ministry of Finance, Ministry of Agriculture and Food Industries as well as the Ministry of Energy and Natural Resources.

Anwar added that the wealthy and industries should not be worried as there will be other benefits that will be provided.

" I am putting this matter first as I feel the high cost of living is an issue that needs to be addressed immediately as it is a burden to the poor, once the cabinet is formed we can examine in detail the whole policy," he added.

" The ministries tasked with preparing the papers will then discuss with all parties including the Treasury, Bank Negara, the Economic Planning unit and the private sectors before it will given to me and the future cabinet for consideration," he explained.