PUTRAJAYA, June 1 ― The targeted diesel subsidy is expected to save the Malaysian government an estimated RM4 billion, providing greater fiscal flexibility to improve essential public services, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He noted that in 2022, RM81 billion was spent on subsidies and social welfare, which decreased to under RM70 billion last year, emphasizing the need for more efficient spending.
Amir Hamzah highlighted that these savings could be redirected towards enhancing infrastructure such as roads and schools, and improving healthcare services. The targeted subsidy, known as “Budi Madani,” will benefit around 700,000 diesel vehicle owners, including public transport, fishermen, selected commercial vehicles, individuals, and small farmers. This initiative aims to ensure that subsidies reach those in genuine need while allowing the government to invest in critical areas for the country’s development.
