Malaysia On Track To Meet Deficit Target As BUDI95 Subsidy Saves Up To RM4 Bln

SHAH ALAM, Sept 23 (Bernama) – Malaysia remains on track to meet this year’s budget deficit target of 3.8 per cent of gross domestic product (GDP) with the rollout of the BUDI MADANI RON95 (BUDI95) targeted subsidy programme, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

Speaking at a media briefing on BUDI95 today, Amir Hamzah said the government expects annual savings of between RM2.5 billion and RM4 billion through the targeted RON95 subsidy and aims to mirror the success of the targeted diesel subsidy system.

He noted that the targeted diesel subsidy has already exceeded expectations, with estimated savings of RM6 billion to RM7 billion compared with the initial RM4 billion target.

“For RON95, subsidies will be removed for ineligible groups, allowing savings of RM2.5 billion to RM4 billion,” he said, adding that the actual figure will depend on global oil prices. 

Amir Hamzah said if world oil prices rise, the subsidy bill for Malaysians will also increase.

The government will pass the full fuel cost to those who do not qualify, enabling the savings to be channelled back to national finances, he said.

It was reported yesterday that the savings estimate is based on crude oil trading at around US$75 per barrel.

Prime Minister Datuk Seri Anwar Ibrahim earlier announced that the price of RON95 petrol will be reduced from RM2.05 to RM1.99 per litre starting Sept 30 under the BUDI95 programme.

Anwar, who is also Finance Minister, said all citizens with a valid driving licence are eligible for the subsidy. Based on Road Transport Department (JPJ) and National Registration Department (JPN) records, more than 16 million Malaysians are expected to benefit.

-- BERNAMA