KUALA LUMPUR: The government is still reviewing and evaluating subsidies and assistance provided to the people, including for RON95 petrol.
Economy Minister Rafizi Ramli said the implementation of targeted subsidies for RON95 will be studied from all aspects to ensure everything runs smoothly and the effectiveness of distribution to the public can be improved.
He added that engagement sessions with stakeholders will also be held to ensure every aspect is considered, including the implementation timeline and appropriate mechanisms to ensure those affected receive proper assistance.
"The targetting of diesel subsidies is expected to generate savings of RM4 billion for the government and provide greater fiscal space for us to improve the quality of public services.
"To achieve the same objective, the government is also reviewing the need to implement the rationalisation of subsidies for RON95 petrol. However, for the time being, the focus and priority will be on the implementation of diesel subsidies until its targetting becomes stable and achieves the set objectives.
"Various proposals are also being considered by the government based on use cases conducted via the Central Database Hub (Padu)," he said in a parliamentary written reply.
Rafizi said this in response to a question from Tan Sri Muhyiddin Yassin (PN-Pagoh) about the mechanism used for the rationalisation of petrol and diesel subsidies as well as the impact of the implementation on households.
The targetted fuel subsidy initiative, which began with diesel subsidies on June 10 this year, is expected to strengthen the country's fiscal position and reduce leakage due to smuggling activities.
Its implementation is also expected to mitigate the impact on the cost of living for people by providing support mechanisms through the Subsidised Diesel Control System 2.0.
At the same time, Rafizi added that the government was also reviewing the distribution of social assistance to ensure that the people are not overly burdened by the anticipated hike in prices when the subsidy rationalisation is implemented.
However, any decisions made by the government will be communicated clearly to avoid confusion about the government's policy plans, he said.
"The government has also planned several initiatives to maintain the purchasing power of the people.
"The National Cost of Living Action Council under the Domestic Trade and Cost of Living Ministry will intensify efforts to address the cost of living so that the purchasing power and well-being of the people are not affected.
"The implementation of these various initiatives is hoped to help reduce the cost of living and increase the purchasing power of the public."