KUALA LUMPUR, May 22 — Prime Minister Datuk Seri Anwar Ibrahim has announced that the Cabinet has approved a diesel subsidy rationalisation programme for Peninsular Malaysia, expected to save the government approximately RM4 billion annually. The initiative will initially target Peninsular Malaysia users and will not affect those in Sabah and Sarawak. To prevent abrupt price hikes in goods and services, Anwar outlined several measures, including targeted diesel subsidies for commercial users such as bus and taxi operators.
The Subsidised Diesel Control System (SKDS) will cover 10 types of public transport vehicles and 23 types of logistical vehicles. Financial aid will also be provided to eligible private vehicle owners, such as small farmers and traders, ensuring the subsidies benefit lower-income households. The savings will be redirected towards public initiatives like the Sumbangan Asas Rahmah and Sumbangan Tunai Rahmah programmes, significantly increasing their allocations to benefit a larger portion of the population.
