PETALING JAYA, June 21 – The recent fare increases by Singaporean travel agencies and tour buses validate Malaysia’s diesel subsidy rationalisation initiative, Prime Minister Anwar Ibrahim said today. Speaking at a mosque in Bukit Mertajam, Anwar noted that the price hikes were attributed to a lack of diesel subsidies, highlighting that Malaysian subsidies had been benefiting foreign entities for decades. He pointed out that subsidies were supporting 3.8 million foreigners, including Thai fishing boats, at the expense of Malaysian taxpayers.
Anwar, who is also the finance minister, emphasized the importance of targeted diesel subsidies to prevent financial leakage overseas and save Malaysia’s finances. He mentioned that from 2012 to 2020, the increase in diesel consumption far exceeded the number of cars produced, suggesting that the fuel was being enjoyed predominantly by foreigners. The targeted diesel subsidies, which started on June 10 at a new price of RM3.35 per litre, aim to curb the smuggling and misuse of subsidised diesel. This comes after reports indicated that three million litres of diesel were being smuggled out daily, causing significant financial losses.
