KUALA LUMPUR, June 30 — The Malaysian government remains optimistic about achieving its 2024 inflation rate and economic growth targets despite the implementation of the diesel subsidy retargeting plan, according to Finance Minister II Datuk Seri Amir Hamzah Azizan. The official targets are a headline inflation rate of 2.0-3.5 per cent and a gross domestic product (GDP) growth of 4.0-5.0 per cent for the year. Speaking in the Dewan Rakyat, Amir Hamzah explained that the retargeting approach includes providing subsidised diesel to the logistics sector and monthly cash assistance to individuals.
This strategy aims to mitigate the impact on consumer goods prices and alleviate financial pressure on the public. The government continues to allocate up to RM10 billion for diesel subsidies, saving RM4 billion annually through the retargeting. This allocation covers subsidies in Sabah and Sarawak (RM3 billion), public transportation and logistics in Peninsular Malaysia (RM4 billion), cash assistance for diesel vehicle owners and agri-commodity smallholders (RM2 billion), and subsidies for fishermen (RM1 billion).
