Targeted petrol subsidy expected to benefit five million from M40 group

KUALA LUMPUR, Oct 15 -- Some five million people from the M40 (middle income) group are also expected to benefit from the targeted petrol subsidy scheme (PSP).

Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said the number is additional to the 2.9 million PSP recipients from the B40 (lower income) group.

"According to the Budget announcement (Budget 2020) on Friday, if before we used data from the Bantuan Sara Hidup (BSH) whereby 2.9 million recipients were identified, when extended to other groups including the M40, it is estimated that the number of PSP recipients will rise to eight million, involving a cost of RM2.2 billion,” he said during the Question-and-Answer session in the Dewan Rakyat today.

He was replying to a question from Dr Kelvin Yii Lee Wuen (PH-Bandar Kuching) who wanted to know the government's readiness to implement the PSP.

On Friday, Finance Minister Lim Guan Eng when tabling Budget 2020 in the Dewan Rakyat, had announced that those not in the B40 group could also enjoy the subsidy via the Kad95 intiative. The card will be given to those who qualify - that is with a monthly income below RM4,000 but are not listed in BSH.

Saifuddin Nasution said the mechanism to identify the five million recipients (those who qualify for the PSP) would be discussed with the relevant parties, which include the Finance Ministry, Road Transport Department and Tenaga Nasional Bhd.

To a supplementary question from Dr Yii as to whether the subsidy amount would be raised if there was a rise in world crude oil prices, Saifuddin Nasution said it would change depending on the world economic climate.

He said when making the plans for the PSP via engagement sessions with industry players, world crude oil prices were hovering between US$50 and US$60 per barrel.

He noted that this price range served as the guide for  the PSP and that the government would make adjustments if needed.

-- BERNAMA