WFH for 50% of Klang Valley could save RM169mil a month in fuel subsidies, says group

 RimbaWatch says the Klang Valley accounts for only about 23% of Malaysia’s workforce, suggesting that a nationwide adoption could save up to RM1 billion a month.

RimbaWatch said reduced commuting from WFH arrangements would not only ease fiscal pressure but also cut congestion and carbon emissions.

PETALING JAYA:

 Implementing work-from-home (WFH) arrangements for just half of the Klang Valley’s workforce could save the government about RM169 million a month in fuel subsidies, an environmental group says.

Based on data from government and research-based sources, RimbaWatch estimated that half of the Klang Valley’s roughly 4.08 million workers, or about 2.04 million people, would be staying off the roads.

It said this would reduce petrol consumption by 4.51 million litres a day, or 90.2 million litres a month.

“Given that the current subsidy bill is at RM1.88 per litre, this would translate to fuel subsidy savings of RM169 million per month.

“If the current geopolitical climate persists or worsens indefinitely, this could translate to subsidy savings of RM2.03 billion over 12 months,” it said in a statement today.

The group also noted that the Klang Valley accounts for only about 23% of Malaysia’s workforce, suggesting that nationwide adoption could save up to RM1 billion a month.

Beginning April 15, employees at government ministries, agencies, statutory bodies and government-linked companies will be allowed to WFH, while private firms have been encouraged to adopt similar measures.

The move comes amid rising fuel costs following disruptions to global supply chains as a result of the Middle East conflict.

Brent crude prices have surged past US$100 since the conflict escalated in late February.

Malaysia’s fuel subsidy bill is estimated at around RM4 billion a month, as Putrajaya maintains the subsidised RON95 price at RM1.99 per litre under the BUDI95 scheme alongside targeted diesel subsidies.

However, it temporarily reduced the subsidised RON95 quota from 300 litres to 200 litres per month, effective April 1.

Beyond cost savings, RimbaWatch said reduced commuting would also help cut congestion and lower carbon emissions.

“The current spike in fossil fuel energy prices underscores the need for structural changes in Malaysia’s transport accessibility, energy sustainability and security, with fossil fuels being an increasingly scarce, expensive and polluting source of energy,” it said.

The group also called for longer-term reforms, including greater investment in public transport and a phase-out of fossil fuels. - FMT