KUALA LUMPUR: Economy Minister Rafizi Ramli has denied claims that the government follows an "announce first, research later" approach regarding the mechanism for the targeted RON95 fuel subsidy.
He told the Dewan Rakyat today that a pilot project was implemented between 2022 and 2023, involving the use of identification cards alongside e-wallets at selected petrol stations using the two-tiered pricing system.
"This system has already been tested. In terms of eligibility verification on the backend, Padu (Central Database Hub) has been operational and used for several cases.
"The actual criticism of "announcing without research" should go to the opposition.
"When the mid-term review was presented in this house in September last year, the government clearly stated that subsidy restructuring is central to our economic reforms and fiscal strengthening measures.
"However, we are taking a phased approach, beginning with diesel and then RON95—unless opposition members of parliament haven't read the mid-term review that was presented.
"The idea that we announced first and researched later is irrelevant. The 20 months has been used not only to implement the pilot project but also to ensure data availability, even though we faced criticism regarding Padu," he said.
He was responding to Abdul Latiff Abdul Rahman (PN-Kuala Krai) who asked whether the two-tiered pricing system matter has been studied or if there are models for targeting petrol subsidies from other countries that are considered the best, and whether these models have been tested before being announced.
Abdul Latiff said this is because the government has often announced things first and conducted studies later, especially when the process involves multiple agencies and ministries.
Rafizi said there is no other country that has an extensive fuel subsidy system as Malaysia does.
"In Asia, only Brunei has similarly widespread subsidies for everyone. Nearly every country in the world has shifted to market pricing, so if there were a reference, it would be us, as no other country is in Malaysia's situation.
"Almost all countries opt for cash transfers—floating the price and providing a monthly cash rebate. However, that method risks raising the cost of goods, which is why the government has chosen the current approach," he said.
To this, Mohd Syahir Che Sulaiman raised Standing Order 36(12) and a written response from the Rafizi to clarify which petrol stations have been chosen for the pilot project.