KUALA LUMPUR: THE impending fuel subsidy rationalisation programme to address abuses and ensure only deserving parties benefit from it is expected to be rolled out in September, said Datuk Hasan Malek.
The domestic trade, cooperatives and consumerism minister said the government was studying all proposals submitted by seven companies to plug loopholes in the subsidised fuel distribution system to more than 10 million Malaysians.
“The government will opt for the best. Only the one that benefits the people and country will be considered,” he told the New Straits Times yesterday.
Hasan was responding to the New Straits Times’ exclusive report yesterday, highlighting that the government had received the proposals on how it could address abuses and leakages, which had cost the government in the billions of ringgit in losses, and facilitate practical implementation of the distribution of subsidised fuel to deserving Malaysians.
Two of the companies are foreign-based entities. One is based in Singapore and the other is linked to a former cabinet minister.
Among the firms, are MyEG Services Berhad, whose executive chairman is Datuk Dr Noraesah Mohamad; Iris Corporation Berhad (one of the directors is Tan Sri Razali Ismail); ICASH Global Rewards Sdn Bhd (its chairman is Tan Sri Mohd Radzi Sheikh Ahmad and one of its directors is Gen (R) Datuk Husainay Hashim) and MOL AccessPortal Sdn Bhd (executive director is Ramlee Jaafar).
A source familiar with the proposals said each company had proposed to use either the MyKad, fuel card, smart card, biometric, cash and coupon as platforms to address the loopholes in the subsidised fuel distribution system.
Each platform, however, will trigger a different impact on the capital expenditure and upfront payment to be borne by the government, ranging from RM200 million to RM1 billion.
Some companies had proposed that they be given total ownership and control of their system hardware and database, but the government would unlikely consider that due to the amount of personal data involved, especially to foreign-based companies.
Hasan said submissions were not restricted to Malaysian companies.
“We are listing the pros and cons of each proposal and will present them to the Economic Planning Unit.”
Umno supreme council member Datuk Dr Mohd Puad Zarkashi urged the government, in awarding the concession, not to share the database with the selected company for security reasons.
“It is dangerous to share the database, especially with the foreign-based companies, due to the amount of confidential data involved.”
He said the government should also give priority to local companies when awarding the concession.
Puad said he believed local companies were more than capable of managing the programme.