Kuala lumpur: The government will ensure that the targeting of subsidies does not burden the people, thus enabling the government to increase the allocation of targeted aid to the people in an effort to strengthen a more inclusive social protection network. The Finance Ministry emphasized this in a reply on the parliament website, underscoring the strategy's potential to enhance the people's disposable income and provide positive benefits to the country's economic environment, aligning with the MADANI Economic Framework.

According to BERNAMA News Agency, the government has initiated bold measures since 2023 that focus on subsidy targeting, including electricity subsidy targeting, diesel subsidy targeting, chicken and egg price floating, and RON95 subsidy targeting. The ministry highlighted that floating the price of chicken and eggs has not disrupted the supply or stability of these prices in the market.

In addressing diesel subsidies, the ministry noted that public vehicles and selected goods transport are provided with fleet card facilities, allowing them to purchase diesel at a subsidised price of RM2.15 per litre. Furthermore, cash assistance of RM200 per month is granted to eligible private diesel vehicle owners, farmers, breeders, and smallholders.

For the RON95 subsidy, Malaysian citizens aged 16 and above are eligible to purchase RON95 petrol at a subsidised rate of RM1.99 per litre. The BUDI95 eligibility has also been extended to registered fishermen, private boat owners in Sabah and Sarawak, e-hailing drivers, and airport taxis.

The ministry's reply was in response to a query from Mohd Syahir Che Sulaiman (PN-Bachok) regarding the net impact of subsidy rationalisation on the purchasing power of B40 and M40 households, considering aspects such as administrative costs, leakage, and the targeting mechanism used.