Targeted subsidies for petrol and diesel in Malaysia likely to be implemented in 2024 using 3 mechanisms

According to economy minister Rafizi Ramli, targeted subsidies for petrol and diesel are likely to be implemented in 2024 using three mechanisms. As reported by The Star, Rafizi was responding to a question posted to him in the Dewan Rakyat on the engagement with stakeholders on targeted subsidies in 2024 and the type of targeted subsidies to be implemented.

The first mechanism will be based on individual net disposable income, which is the amount left over after taxes. Meanwhile, the second mechanism will be based on net disposable household income through social protection or assistance schemes.

The third mechanism will be a combination of household and individual earnings, which will be implemented using a subsidies card. Rafizi pointed out that the targeted subsidies programme is expected to be implemented after the Pangkalan Data Utama (PADU) system is rolled out in January next year.

“Besides the form and mechanism of targeted subsidies, the Cabinet will decide on implementation and follow-up plans. These include communication, engagement and support plans to alleviate the burden of the people which will be coordinated by the entire government machinery,” he said.

The target subsidies programme will only involve Peninsular Malaysia, as revealed by prime minister Datuk Seri Anwar Ibrahim at the start of this month, who added that diesel subsidies will be carried out in phases. Anwar, who is also finance minister, said diesel subsidies would not involve Sabah and Sarawak due to the extensive use of diesel in these states.

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