Targeted diesel subsidy is also meant to upgrade public transportation infrastructure

Economy Minister Rafizi Ramli highlighted that one of the objectives of the targeted diesel subsidy is to invest in the nation’s critical infrastructure, particularly emphasizing public transportation infrastructure.

“One of the goals of restructuring diesel subsidies is to ensure that only eligible individuals receive subsidies, with the remainder invested in the nation’s key infrastructure.

“One such area is public transportation infrastructure,” he said via a Facebook post.

He added that the previous government spent more than RM20 billion on building double-track railway lines from Padang Besar to Johor Bahru, but the current trains only utilize 30% of the capacity.

“The Madani government will redirect the savings to increase the number of trains so that we can fully utilize the potential of the railway system in this country,” he said.

On June 10, bulk diesel subsidies were discontinued in Peninsula Malaysia, resulting in diesel prices being subject to market fluctuations.

Retail stations across the Peninsula Malaysia have now established diesel prices at RM3.35 per litre.

Businesses have raised prices in response to discontent and grievances arising from fluctuating diesel prices following the government’s introduction of targeted subsidies.

The Domestic Trade and Cost of Living Ministry has issued written notices to 10 companies for raising the prices of goods and services since the targeted diesel subsidy scheme, reported The Star today.

According to a statement released on Friday, its minister Datuk Armizan Mohd Ali specified that among the 10 companies were three transport firms, three construction firms, two beverage companies, and two machinery rental firms.

Targeted diesel subsidy will save Malaysia RM 4 billion annually, said Prime Minister Datuk Seri Anwar Ibrahim on May 21.

Anwar said on June 11, that the RM4 billion saved from adjusting diesel subsidies will be redirected to public transportation and Sumbangan Tunai Rahmah, rather than increasing ministers’ salaries.

Anwar has justified the government’s move to implement targeted subsidies, stating that Malaysia has no choice.

“This is done to save the country, we are left with no choice,” Anwar said, reported The Star.