KUALA LUMPUR: The government is withholding details on subsidy rationalisation to prevent traders from exploiting the situation, says Economy Minister Rafizi Ramli.
He said that public advance notice could lead to preemptive price hikes by traders.
"If details are known beforehand, prices may increase repeatedly. Thus, the government finalises decisions internally before making announcements," he said in response to Datuk Seri Ronald Kiandee (PN-Beluran).
Kiandee queried whether a surprise announcement could mitigate the burden on the country and the people.
Regarding the RON 95 subsidy rationalisation, Rafizi said that the government was currently refining the targeting mechanism using data from the Central Database Hub (Padu).
"However, the current focus is on diesel subsidy rationalisation and assessing its impact on the economy and citizens.
"In the near future, the government plans to leverage Padu's data for various purposes developed by multiple agencies to enhance socio economic programmes, specifically to optimise resources, reduce wastage, and improve the welfare of the people."
Last month, Rafizi in an interview with Bloomberg at the World Economic Forum in China said that the government would announce the removal of the RON95 petrol subsidy unexpectedly, similar to the diesel subsidy move.
"We will keep our cards close to our chest in the same way we surprised everyone with diesel. So we did surprise everyone with diesel, and I think everyone is up for another surprise," he said.
On June 10, diesel prices in Peninsular Malaysia rose to RM3.35 per litre, a decision criticised by the opposition.