Kuala lumpur: Opposition Leader Datuk Seri Hamzah Zainudin's statement on the diesel subsidy issue is deemed not to reflect the overall current economic facts and has the potential to mislead the people, especially when the government is implementing the restructuring of fuel subsidies.
According to BERNAMA News Agency, Parti Keadilan Rakyat (PKR) deputy secretary-general Sivamalar Genapathy said the statement was seen as repeating an old narrative that was emotional without taking into account the need for subsidy reform to ensure the country's fiscal sustainability. He emphasized that the previous subsidy system was exposed to serious leakages costing billions of ringgit annually and was often misused through smuggling activities or by ineligible parties.
"When they were given the mandate to govern, this leakage issue was left to linger without a thorough correction. The targeted implementation of diesel subsidies is important to close the leakage and ensure that the subsidy is only enjoyed by those who truly deserve it. The claim that the diesel price adjustment will burden the people must be viewed responsibly," he said in a statement today.
Sivamalar further stated that the targeted implementation of diesel subsidies ensures that critical sectors such as logistics, public transport, and agriculture continue to be protected through a special mechanism introduced by the government. Despite global oil price pressures due to the Middle East conflict, the government has maintained the subsidized price of RON95 at RM1.99 per litre, while the market price of RON97 hovers around RM3.85, as a protective measure for the majority of the population.
He also highlighted various mitigation measures the government has implemented to control the chain effect on the cost of living, including the initial payment of the Rahmah Cash Contribution (STR) amounting to RM1.3 billion to 5.2 million recipients ahead of Aidilfitri. Additional special assistance has been channeled to civil servants, retirees, veterans, and appreciation extended to more than 70,000 imams, bilals, KAFA teachers, and mosque management staff.
Sivamalar criticized the proposal to postpone the implementation of subsidy reforms, suggesting that while it may appear popular, it fails to address the fundamental issues and lacks a clear direction. "If you really want to protect the people, present a clear, comprehensive, and implementable mitigation plan, not just cause concern or create narrow perceptions," he added.
Hamzah had previously suggested that the increase in diesel prices by 80 sen to RM4.72 per litre should not be implemented at this time but rather proposed postponing it until after Aidilfitri or executing the increase in stages.