Govt Refining Appropriate Threshold For Petrol Subsidy Recipients-- Akmal

PUTRAJAYA, May 11 (Bernama) -- The government is refining the appropriate threshold between those who should receive petrol subsidies and those who can be excluded as part of the effort to implement a more targeted subsidy mechanism, said Economy Minister Akmal Nasrullah Mohd Nasir.

According to the minister, one aspect under study is determining an appropriate dividing line between those who should receive subsidies and those who can be removed from the subsidy system.

“In our efforts to deliver this subsidy to the target group, we also do not want to cause a significant shock to groups that may still need support or in terms of readiness to transition fully,” he told the media at the Letter of Offer Presentation Ceremony to Approved Entities under the Strategic Cooperation between the Malaysian government and Arm Ltd here today.

On Sunday, Prime Minister Datuk Seri Anwar Ibrahim was reported to have said that the government is still examining the best mechanism regarding the proposal to review petrol subsidies for high-income groups.

Anwar said several ministries and related committees had discussed the proposal for the past few weeks, but the government has not finalised whether it will involve the T20, T15, or other categories.

Meanwhile, Akmal also said that the matter had been discussed in the National Economic Action Council (MTEN) meeting previously, following the government’s readiness to improve the subsidy distribution method to be more targeted.

“This matter has indeed been raised in the previous MTEN meeting, where, as the Prime Minister has stated, the government’s readiness to consider our need to further target this subsidy distribution method.”

“And certainly, in terms of the biggest challenge, it is to determine the level at which the (subsidy) threshold needs to occur. This threshold will need to be considered from various dimensions,” he said.

Akmal said that among the matters given attention was the method of communication of the policy so that the people could clearly understand it.

He said that there are views from the academic sector and various parties that subsidy management should no longer be implemented uniformly, but rather should take into account the needs.

“We have also previously considered the management of the quantity of supplies we provide to each recipient.

“And the next method is to ensure that the results or subsidies truly benefit our target group,” he said.

When asked about the timeline for finalising the mechanism, Akmal said the government hopes the matter can be resolved before the start of a new month, considering its implementation also involves system readiness.

“In my opinion, it would be best if we could finalise it before the start of a new month. Because when we want to bring about this change, it also involves the system.

“So it depends on the readiness of the system to ensure that the screening goes well,” he said.

Regarding the use of data to determine the category of subsidy recipients, Akmal said the government is considering several dimensions, including income and other factors.

Akmal said further details would be announced only after the government makes a final decision, including an appeal mechanism to ensure implementation is more transparent and more easily accepted by the target groups.

“Of course, the existing data points, if they come from the segment of the Ministry of Economy, we are indeed ready to be part of the determination or reference for the data or dimensions that we will consider,” he said.

-- BERNAMA