KUALA LUMPUR, June 5 — The Malaysian government is prioritizing the development of an efficient execution mechanism for implementing targeted subsidies, including for fuel, according to Finance Minister II Datuk Seri Amir Hamzah Azizan. Speaking at the recent @EY C-Suite Forum, he emphasized that the mechanism must be precise to ensure subsidies benefit the right groups and generate significant savings as blanket subsidies are phased out.
Amir Hamzah highlighted that Malaysia’s diesel subsidy costs the government RM1 billion monthly, with significant losses due to smuggling and improper use by ineligible commercial sectors. The government estimates leakages cost RM4.5 million daily. Therefore, reforms are necessary to make subsidies sustainable and focus assistance on the most vulnerable. Prime Minister Datuk Seri Anwar Ibrahim announced that the Cabinet has approved targeted diesel subsidies for Peninsular Malaysia, excluding Sabah and Sarawak due to their unique dependence on diesel for family vehicles.
