Kuala lumpur: The government is refining the appropriate threshold between those who should receive petrol subsidies and those who can be excluded as part of the effort to implement a more targeted subsidy mechanism, said Economy Minister Akmal Nasrullah Mohd Nasir.
According to BERNAMA News Agency, one aspect under study is determining an appropriate dividing line between those who should receive subsidies and those who can be removed from the subsidy system. Akmal emphasized the importance of ensuring that the transition does not negatively impact groups that may still require support, as he addressed the media at the Letter of Offer Presentation Ceremony to Approved Entities under the Strategic Cooperation between the Malaysian government and Arm Ltd.
On Sunday, Prime Minister Datuk Seri Anwar Ibrahim mentioned that the government is still exploring the best approach for reviewing petrol subsidies for high-income groups. Discussions have been ongoing among several ministries and related committees, but no final decision has been made regarding whether it will involve the T20, T15, or other categories.
Meanwhile, Akmal highlighted that the issue had been previously discussed in the National Economic Action Council (MTEN) meeting, aligning with the government's intention to enhance the subsidy distribution method for greater targeting. He acknowledged the challenge of determining the appropriate subsidy threshold, which needs to be assessed from various dimensions.
Akmal also pointed out the significance of effectively communicating the policy to the public to ensure a clear understanding. He shared that there are opinions from the academic sector and other stakeholders advocating for a more nuanced subsidy management approach rather than a uniform implementation.
The government is also considering the management of supply quantities provided to each recipient to ensure that the subsidies effectively benefit the intended target group. Akmal expressed hope that the mechanism could be resolved before the start of a new month, emphasizing the need for system readiness to facilitate the change.
Regarding data utilization for determining subsidy recipients, Akmal stated that the government is exploring several dimensions, including income and other factors. He mentioned that further details would be disclosed after the government reaches a final decision, including the introduction of an appeal mechanism to enhance transparency and acceptance among target groups.