Bulk subsidy systems don't benefit Malaysians

Bulk subsidy systems only benefit T20 and foreigners, said Prime Minister Datuk Seri Anwar Ibrahim.

“Bulk subsidy systems cannot be maintained as they benefit ineligible groups (T20 and foreigners) and oppress the eligible ones.

“If we were to pursue populism, we could simply continue with bulk subsidies and accumulate debt. However, out of awareness, the country must be rescued from inefficient policies,” Anwar said in a Facebook post.

He also said that the savings made can be channelled towards the education of children and future generations, as well as the healthcare and public transportation systems.

“The rationalisation of these subsidies is not an absolute withdrawal but rather a restructuring to curb wastage, streamline the economy, and curb subsidized diesel smuggling activities that have been costing the country millions of ringgit almost every year,” he added.

He added that diesel subsidies are still targeted directly at individuals and small-scale farmers through the BUDI MADANI program, while logistics and public transportation services continue to receive diesel at below-market prices through the Subsidised Diesel Control System (SKDS) to control the prices of goods and services.

Effective yesterday, diesel prices in Peninsular Malaysia ceased to receive subsidies and will now fluctuate according to market rates.

Across the Peninsula, all retail stations are now selling diesel at a fixed rate of RM3.35 per litre.