Kuala lumpur: The government's ongoing commitment to subsidizing fuel costs is hailed as a vital measure to alleviate the financial burden on the populace and counteract inflationary pressures, serving as a crucial defense against the global supply crisis.
According to BERNAMA News Agency, Dr. Saravanan Thambirajah, the chief executive officer of the Federation of Malaysian Consumers Associations (FOMCA), expressed support for the MADANI Government's initiative, highlighting its role in reassuring consumers that their welfare remains a top priority. He emphasized that maintaining current fuel prices significantly reduces transportation and logistics costs, thereby supporting the supply chain and preventing price hikes in daily necessities.
Dr. Saravanan noted, however, that fuel prices are merely one of many factors influencing the cost of goods. Consumers continue to grapple with challenges posed by food costs, rental rates, energy expenses, wages, and other operational costs that also impact market prices. Despite this, he asserted that keeping the RON95 price stable can act as a buffer against inflation.
Meanwhile, Dr. Mohd Shukor Harun, a senior lecturer at the Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, commended the government's commitment as a responsible step, particularly in alleviating the financial burden on the B40 and M40 income groups. However, he pointed out that the existing blanket subsidy mechanism is regressive, as it also benefits wealthier individuals. He cautioned that persisting with this subsidy during surges in global crude oil prices could exacerbate the fiscal deficit and divert funds from essential sectors like development, education, and healthcare. Dr. Mohd Shukor suggested a long-term strategy involving the progressive implementation of targeted subsidies to ensure sustainable support for the people amid global economic pressures.
For food delivery rider Umair Al-Anshaari Rusli, 24, the continuation of the fuel subsidy is a significant relief, as he depends entirely on his vehicle for his daily income. He emphasized the subsidy's importance in controlling the rise in the prices of goods and transportation costs, which are crucial for those relying heavily on motorcycles or cars for their livelihood.
Prime Minister Datuk Seri Anwar Ibrahim has previously stated his opposition to increasing fuel prices during a global supply crisis, reinforcing the government's commitment to bearing fuel subsidy costs. This effort includes allocating substantial monthly expenditure to prevent undue financial strain on the population.