Targeted subsidies reduce wastage and can increase assistance to the people – Fahmi

KOTA KINABALU: The current government’s effort in restructuring subsidies, carried out by MADANI, plays a crucial role in reducing wastage and providing more assistance initiatives to the people.


According to the Minister of Communication, Fahmi Fadzil, this is because the savings obtained through subsidy restructuring can be directly channelled to the people through various government initiatives.

He further stated that this would increase the people’s income and prevent the subsidies from falling into the hands of irresponsible parties.

“In the issue of diesel subsidies, the Road Transport Department (JPJ) has reported that the country loses RM1.25 million per day due to wastage and diesel smuggling.

“This amount is significant and could be used to implement assistance initiatives for the people.”

“There was a report of a truck being caught almost at midnight, attempting to fill up with 4,800 litres of diesel. Despite the announcement of the diesel subsidy restructuring at 5 p.m., effective from midnight, there are still individuals attempting to steal diesel,” he said here on Monday.

He made these remarks during his speech at the Appreciation Ceremony for the Excellent Service Award of the Ministry of Communication for the Sabah and Labuan Zone, which saw 69 ministry officers receiving their respective awards.

Yesterday, the Second Finance Minister, Datuk Seri Amir Hamzah Azizan, announced that the price of diesel at all retail stations in Peninsular Malaysia would be set at RM3.35 per litre, which is the market price without subsidies, starting at 12.01 a.m. on Monday.

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