Targeted diesel subsidy: govt saves RM600 million monthly
Deputy Minister of Finance Lim Hui Ying revealed that the targeted diesel subsidy, implemented in June this year, has enabled the government to generate savings of RM600 million a month.
She stated that these savings will be reinvested back into the community. This is further evidenced by the increase in the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) schemes in the coming year.
“The government’s savings will ensure that more resources are available to be directed towards other critical sectors, thereby improving the quality of life for the people, including public infrastructure, healthcare, and education.
“Certainly, this includes roads, hospitals, and schools. The STR and SARA for 2025 will also see an increase compared to 2024,” she said.
She made these comments in response to a question from the Member of Parliament for Permatang Pauh, Muhammad Fawwaz Mohamad Jan, who inquired about the government’s savings resulting from the decision to withdraw diesel subsidies.
Hui Ying also addressed an additional question from Mohammad Fawwaz regarding the government’s plans for implementing targeted diesel subsidies in Sabah and Sarawak.
She explained that the predominant mode of transportation for economic activities in those areas uses diesel, and their geographical conditions are two primary factors that have delayed implementation.
She clarified that this might be executed after the government completes its studies to address these challenges, ensuring that any decisions made do not burden the citizens.
In response to a question from Azli Yusof (PH-Shah Alam) concerning the weaknesses in the adjustment of diesel subsidies, Hui Ying acknowledged the shortcomings but confirmed that stringent monitoring is still in place.
“The government recognises the existence of weaknesses; that is why we are still in the process of engaging with stakeholders and industry players to make improvements. However, as this adjustment has now been in place for less than six months, we will continue to monitor it regularly,” she remarked.
