Diesel subsidy: Govt can't always take populist measures - PM's aide

The prime minister’s political secretary, Muhammad Kamil Abdul Munim, has defended the government’s move to implement targeted subsidies.

He said such measures are aimed at streamlining the country’s administration.

“The government today will not take populist measures because we need to take bolder and more responsible steps to restore our fiscal position and the current economy.

“I believe we need to take a more rational and reasonable approach. If we want to make this change, we can’t do it in a short period of time.

“We need to restore confidence, improve the administrative system, and we have to review management and governance.

“We are streamlining this one by one. God willing, in the mid-term, we will witness changes in the standard of living and welfare of the people, including the business sector and so on,” he told Malaysiakini.

He said this when asked to comment on the government’s decision to introduce targeted diesel subsidies.

Previously, Prime Minister Anwar Ibrahim stressed that the targeted subsidies were implemented to ensure subsidised diesel is not bought by the ultra-wealthy and foreigners, besides curbing diesel smuggling activities.

Efforts to restore economy

However, opposition leaders argued that the government’s action burdens the people.

Kamil, who is also the PKR Youth deputy chief, denied the opposition’s claims.

“There are accusations that the country’s economy is messed up and so on. This is a perception created by the opposition leadership which does not contribute to the efforts of the current government to restore and empower the economy.

“It is not true… We cannot measure the ability of the current government in a short period of less than two years.

“We have increased the STR (Sumbangan Tunai Rahmah) cash aid. Then Sara (Sumbangan Asas Rahmah) was increased tenfold,” he said, referring to financial aid disbursed by the government.

Elaborating further, Kamil said the government’s savings from subsidy rationalisation are being channelled to develop education, health, and other sectors.

Yesterday, Malaysiakini reported that Finance Minister II Amir Hamzah Azizan said diesel prices will be floated and follow market prices - currently RM3.35 per litre at all petrol stations in Peninsular Malaysia.

The new price involves an increase of RM1.20 (55.8 percent) from the previous subsidised price of RM2.15 per litre.

In addition, diesel prices will be updated weekly, similar to RON97 petrol.