KUALA LUMPUR: The implementation of targeted subsidies for diesel and petrol will be done using three methods once the government has received the completed data for household income through the implementation of its Central Database Hub (Padu), next year.
Economy Minister Rafizi Ramli said while the government has identified several ways to coordinate the targeted subsidies to improve the country's fiscal position, the subsidy could also only be done after getting the nod from the cabinet following a presentation in November.
"The coordination of diesel and petrol subsidies is planned for 2024, through the implementation of Padu which is expected to be completed in January next year.
"In addition to how the subsidies would be implemented, the engagement plan will be announced after the cabinet's decision is reached through a proposal that will be presented this month (November).
"The plan will be implemented after the cabinet's decision is reached, in line with the engagement plan (of Padu implementation) which is set to balance the speculative inflation risks," he said during minister's question time in Dewan Rakyat, today.
Rafizi said this in response to Khoo Poay Tiong (PH-Kota Melaka) on the engagement programmes carried out by the government with stakeholders before implementing the targeted subsidy next year.
The three methods, meanwhile, said Rafizi, will involve subsidy provisions based on individual and household net income, either through social protection schemes or social assistance schemes.
"Firstly, the subsidy provision will be based on an individual's net income through a social protection scheme, whereas the second method will involve the net income of the households through a combination of social protection and social assistance.
"Thirdly, it will be based on both individual and household net income eligibility, where a card subsidy will be implemented.
"Following this, specific decisions on the methods will be announced based on the specified targets in the future."
At the same time, Rafizi added that the proposal for the targeted subsidy was carried out based on a survey conducted nationwide in June to identify methods for the rollout of targeted subsidies that were deemed suitable for Malaysians.
The survey, according to Rafizi, was conducted to obtain direct perspectives from the people on the best possible way for subsidy rollout.
"The planning for diesel and petrol subsidies has already taken place through several meetings held by the government since May with the Finance Ministry, Domestic and Consumer Affairs Ministry, the Prime Minister's Economic Planning Unit as well as Bank Negara Malaysia (BNM).
"Hence, it can be said that the proposal (for the subsidy rollout) is the result of input provided by the government, economic experts as well as the people.
"Apart from that, the cabinet will also establish a communication, engagement and support plan to alleviate the people's burden, which will be executed as a unified effort by the entire government machinery."