KUCHING: Sarawak and Sabah were exempted from the diesel subsidy rationalisation implementation because the federal government understands the needs of the people in these two states and not due to external pressure, Datuk Seri Anwar Ibrahim said.
In his speech at the Sarawak-level Gawai Dayak dinner event here yesterday, the Prime Minister said that diesel is widely used among vehicle owners in Sarawak and Sabah compared to those in Peninsular Malaysia.
Anwar, who is also the Finance Minister, said the federal government decided to postpone the implementation of diesel subsidy rationalisation in Sarawak and Sabah since it is difficult to implement it in these two states.
"Every boat (travelling on rivers)... Every vehicle on the road requires high amount of diesel (to operate). That is why we are postponing (the implementation of diesel subsidy) rationalisation in Sabah and Sarawak.
"Moreover, it may also be challenging to implement in Sabah and Sarawak because there are too many users who are relying on diesel (to operate their vehicles)," he said.
With such explanation, Anwar said he hope that all parties, especially his critics, would understand that the decision behind the implementation of the diesel subsidy rationalisation was not made due to press from leaders in Sarawak and Sabah.
Anwar added that he was aware that such a decision on the matter have elicit mixed reactions, but the public should realise that not all vehicles dependent on diesel in Peninsular Malaysia are affected by the subsidy rationalisation.
"We (still) provide subsidies to school bus (operators), we continue to help fishermen and small-scale farmers.
"As such, it (the diesel subsidy rationalisation) did not affect (all users)," he said.
He added that the government's decision to withdraw electricity subsidies for wealthy individuals and large companies earlier this year had already shown positive results.
"With this move, we can save up to RM4.5 billion annually," he said.
On Sarawak government's initiative to allocate RM200 million to redevelop dilapidated health and education facilities in rural areas in the state, Anwar promised that the federal government would promptly reimburse the amount.
"On Monday, I will immediately instruct the Finance Ministry to reimburse RM100 million.
"This is so that the funds can be spent without any issues. Otherwise, every time I meet the Sarawak Premier, he will ask when the debt will be repaid. So, I don't want to be in that position," he said.
Present during the event were Sarawak Premier Tan Sri Abang Johari Abang Openg and his wife Puan Sri Juma'ani Tuanku Bujang; as well as two Deputy Premiers - Datuk Douglas Uggah Embas and Datuk Dr Sim Kui Hian.