Draft on diesel subsidy system by 2H 2023, says Ahmad Maslan
27 Mar 2023 02:50pm
Ahmad Maslan says the objective is to balance the burden of subsidies with the need to preserve the welfare and well-being of the people
He said the government is also studying the implications of the potential increase in the cost of goods once the subsidy is implemented.
"The government will offer a different approach to small and medium enterprises to ensure that this sector is not affected by its implementation.
"However, everything is still under study and this system will only be completed in the second half of this year while its implementation date has not yet been set,” he said in a question and answer session at the Dewan Rakyat today.
He was responding to a supplementary question from Khoo Poay Tiong (PH-Kota Melaka) who asked on the rationale for implementing the initiative and the mitigation steps to assist affected sectors.
Meanwhile, Ahmad said the government is exploring measures to improve the provision of subsidies in a more targeted manner to reduce leakages and optimise spending on programmes and projects that provide added value to the people and the country’s economy.
The objective is to balance the burden of subsidies with the need to preserve the welfare and well-being of the people, he said.
He was replying to a question from Datuk Dr Mohd Radzi Md Jidin (PN-Putrajaya) regarding the implementation date for the targeted subsidies as announced by the Prime Minister on Nov 27, 2022, as well as the government's assurance that the price of goods would not increase when it is implemented.
Ahmad said that a special team has been established under the Finance Ministry to collaborate with the relevant ministries, departments, and agencies to study the need and feasibility of targeted subsidies and identify effective methods that can save time and have the least financial impact on the government.
This includes collecting data from the Road Transport Department, the National Registration Department, and the Inland Revenue Board, he said.
"The eligibility criteria have not yet been decided, but efforts are being made to develop a comprehensive data centre to help the government set appropriate criteria based on the available data.
"The implementation of the provision of targeted subsidies will be carried out in stages, depending on its readiness as well as to maintain the government's focus on ensuring the cost of living of the people, especially the B40 group, is not affected," he added. -Bernama
