KUALA LUMPUR: The government's objectives behind the rationalisation of fuel and electricity subsidies in Malaysia must be fully understood and grasped by the country's youth.
Prime Minister Datuk Seri Anwar Ibrahim emphasised that Malaysian youth must also empower themselves and demand that the implementation of subsidies in the country is specifically targeted towards the underprivileged group.
He added that this was because subsidy schemes in the country have only benefitted wealthy business owners and 3.8 million foreigners.
"The government recently announced the rationalisation of diesel subsidies, which the youth must be aware of as it directly affects young people involved in businesses using diesel.
"However, why are we increasing the price? This is because there are currently billions in subsidies benefitting wealthy business owners and 3.8 million foreigners.
"Therefore, if some people want to oppose the rationalisation of diesel subsidy, I will ask why we should subsidise 3.8 million foreigners who do not pay taxes, (and) why should we give handouts to the extremely wealthy?
"This is the decision we (the government) made and I hope the youth understand why we are doing this," he said at the 2024 National Youth Day celebration at Dataran Pahlawan in Melaka.
He also mentioned that thorough discussions with his counterparts in Sabah and Sarawak were conducted following the exemption of diesel subsidies there.
"We (the government) did not increase the price for the people, and this includes in Sabah and Sarawak as many people there rely on diesel.
"Therefore, during discussions with friends in Sabah and Sarawak, we found that implementing this measure is not feasible because, unlike in the Peninsula, the diesel usage there is high."
At the same time, Anwar added that 85 per cent of Malaysians were not affected by the decision made by the government to increase the electricity tariff.
He reiterated that only multinational corporations and large export-oriented companies making millions in profits were impacted.
"Hence, why should we lower electricity tariffs for them? It is not our intention to burden them unnecessarily, (but) they should pay according to the actual price.
"This is an example of what young people should understand and grasp. In fact, I believe the youth should demand better, ensuring subsidies are only for the poor, for those who deserve it, the underprivileged and not the wealthy."
Earlier this week, Anwar announced the Cabinet's decision to implement targeted subsidies on fuel starting with diesel, which is projected to save the country RM4 billion annually.
Anwar said the targeted fuel subsidies would start with diesel and would only apply to users in the Peninsula, not those in Sabah and Sarawak.
Meanwhile, beginning in March this year, the service tax on electricity bills for households consuming more than 600 kilowatt-hours increased from six per cent to eight per cent.