Economy Minister Rafizi Ramli has outlined the government's plan to transition from a blanket subsidy system for RON95 fuel to a more targeted approach.
Photo via The Star
Speaking at the National Economic Outlook Conference organized by the Malaysian Institute of Economic Research (MIER) on November 27 at the Menara Affin Auditorium at TRX, Rafizi confirmed that the targeted RON95 subsidy program is set to be implemented in the second half of 2024.
Taking to his official Facebook page, Rafizi emphasized that 2024 will witness the Madani Government introducing various new policies.
Alongside the targeted RON95 subsidy, the coming year will also see the implementation of a progressive wage policy, with Rafizi expressing hope for an overall improvement in the economy.
Explaining the shift from a blanket subsidy model, the Economy Minister highlighted that the current approach has resulted in the top 20 percent income group (T20) households accounting for 53% of the subsidy recipients.
Rafizi argued that a subsidy program disproportionately favoring the affluent is both unsustainable and inequitable, motivating the move towards a targeted subsidy system.
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Posted by Rafizi Ramli on Monday, 27 November 2023
Moreover, Rafizi asserted that the shift to a targeted RON95 subsidy would promptly contribute to an enhanced fiscal position for the country.
This strategic adjustment aligns with the government's commitment to fostering a more balanced and sustainable subsidy distribution that better serves the needs of the populace.