KUALA LUMPUR: The government still bears around RM7 billion in subsidies related to diesel in Peninsular Malaysia, said Prime Minister Datuk Seri Anwar Ibrahim.
He explained that subsidies were not abolished and the diesel subsidy rationalisation is to ensure more efficient management of subsidies so that they are not misused and reach the appropriate groups.
"The main goal of the diesel subsidy rationalisation policy is to ensure that subsidy wastage no longer continues while ensuring that the savings are returned to the wider population," he said in a statement today.
Anwar said savings from the implementation of targeted subsidies will certainly be returned to the people in the form of education, health, public transportation and other sectors that have the greatest impact on the public.
According to him, the MADANI Government will also remain committed to combating diesel smuggling while striving for a balance between the government's efforts and issues of supply and cost of living.