Zafrul: Ministry mulling use of apps for targeted subsidy implementation

 

The Finance Ministry will consider the move to use technology applications to channel subsidies to target groups more efficiently.

Its minister Tengku Zafrul Abdul Aziz (above), however, stressed that now is not the right time to implement targeted subsidies as the country’s economy is still in the recovery phase while inflation remains low compared with other countries.

"What we do not want is to have targeted subsidies, but the execution is not right.

"The implementation approach for the targeted petrol subsidy is also under review," he told reporters on the sidelines of the Wild Digital SEA 2022 today.

The implementation of the targeted petrol subsidy will be continued to support the economic recovery phase currently.

"However, (in the future), it (subsidy implementation) would also depend on the economic condition and crude oil prices.

"If the (market) price of oil at that time is low, maybe there’s no need for a targeted subsidy as the government can continue to give the subsidy," he said.

Meanwhile, Zafrul said the additional dividend of RM25 billion announced recently by Petronas will be used for government expenditure, besides covering subsidy costs, which are expected to reach up to RM80 billion this year.

- Bernama