KOTA KINABALU: Savings from the government's move to implement targeted subsidies for RON95 petrol in the middle of next year will be used for programmes aimed at improving the welfare and livelihoods of the people, Datuk Seri Anwar Ibrahim said.
In his speech at the Madani Rakyat 2024 Sayangi Sabah here today, the Prime Minister said the government is expected to save RM8 billion from the move as 40 percent of the RON95 petrol subsidy is currently enjoyed by foreigners and the ultra-wealthy at present.
Anwar, who is also the Finance Minister, reiterated that 85 percent of the population would not be affected by the implementation of targeted subsidies.
"Currently, the petrol subsidy is being enjoyed by foreigners, people without identity cards, and even the wealthy—those with five bungalows and profits of RM10 million."
"So, the wealthiest T15 group, combined with foreigners, use 40 percent of the subsidised petrol, amounting to RM8 billion a year.
"In other words, the government isn't being smart. That's why we need to consider how to change this. Change it for whom? Not for the ordinary people. So, don't worry, the petrol subsidy will remain for 85 percent of the population.
"This means that the majority will continue to enjoy the RM2.05 per litre price, while the wealthy will have to pay a bit more according to market prices," he said.
Anwar added that prices of petrol in Malaysia are the cheapest compared to Singapore, Thailand, Indonesia, the Philippines, and even Saudi Arabia.
"In Saudi Arabia, the price per litre is RM2.65, compared to Malaysia's RM2.05.
"Currently, we provide subsidies, but how much? In one year, if we don't switch (to targeted subsidies), it will cost us RM20 billion," he said.
Anwar later hit back at certain parties questioning the government's plan to implement targeted subsidy.
"If you are an elected representative championing the welfare of the people in Malaysia, you should support efforts aimed at lessening the burden of the needy," he said.
Meanwhile, the Prime Minister said he wants the grassroots, especially the poor and hardcore poor, to benefit from the various initiatives provided in the 2025 Budget.
Among the key initiatives of the budget are the Rahmah Cash Aid (STR) and Sumbangan Asas Rahmah (SARA), which have been increased to RM13 billion in the 2025 Budget compared to RM10 billion previously.
Anwar said Sara initiative has been expanded to 700,000 people, while the STR aid is distributed to nine million recipients including those in the B40 and M40 income categories.
"District officers, village heads, make sure that no people from the poor miss out on this opportunity. I've already instructed that no one should be left out.
At the event, Anwar also launched a new government initiative through the Domestic Trade and Cost of Living Ministry known as a movement to combat manipulation and leakages, known as Gempur.
The Kita Gempur initiative is a strategic government move aimed at building a mass effort to address manipulation in business activities and leakages involving controlled and subsidised goods.