KUALA LUMPUR – Several Barisan Nasional leaders have voiced their concerns over the withdrawal of diesel subsidies, urging the government to consider a phased approach to avoid economic and public distress.
Umno Youth chief Dr Muhamad Akmal Saleh highlighted the potential economic fallout from the sudden removal of diesel subsidies.
“The announcement of a full withdrawal of diesel subsidies starting today has triggered various reactions. Umno Youth believes that this subsidy withdrawal should be implemented gradually, not abruptly as announced,” the Merlimau assemblyman said in a statement.
Akmal warned that the immediate price hike from RM2.15 to RM3.35 per litre – a RM1.20 increase – could significantly impact the economy and the public.
He said that the current early-stage targeted subsidy system presents challenges that may result in approval delays and the exclusion of those in need.
“Umno Youth recommends that the subsidy be reduced in smaller increments, such as RM0.20 or at a minimum rate of 10%, until initial challenges are addressed and the economic situation stabilises,” he proposed.
While supporting the broader subsidy restructuring policy, Akmal urged a careful and measured approach to prevent severe economic shocks.
MCA vice-president Datuk Seri Wee Jeck Seng echoed similar sentiments, calling for a temporary suspension of the diesel price float to allow more time for the public to adjust and register for the Budi Madani diesel subsidy assistance programme.
In a separate statement, Wee pointed out that only 60,000 out of approximately 410,000 eligible private vehicle owners, farmers, and smallholders had registered for the scheme, representing a mere 14.6% of the total.
“The whopping ascent by RM1.20 per litre has inflicted widespread shock and holds enormous repercussions in the market.”
He criticised the RM200 monthly subsidy as insufficient and highlighted complaints about potential data misuse during the subsidy application process.
Wee also urged Prime Minister Datuk Seri Anwar Ibrahim and Finance Minister II Datuk Seri Amir Hamzah Azizan to reconsider the decision.
“If the unity government still insists on executing the diesel price float, we implore the government to consider adopting a gradual reduction of the subsidy in phases.
“This would allow domestic diesel prices to climb incrementally, providing citizens and businesses with sufficient time to adapt and make appropriate preparations to minimise harm and impact.”
Earlier today, Anwar defended the targeted subsidy implementation as a necessary measure to stabilise the economy, despite its unpopularity.
He acknowledged the political challenges but stressed the importance of the decision to save the country, estimating it would save RM4 billion annually.
Amir recently announced that diesel prices in the peninsula would be floated to RM3.35 per litre, maintaining the previous RM2.15 rate for Sabah, Sarawak, and Labuan.
The government assured that subsidies would continue for traders using diesel-powered commercial vehicles, public transportation, and specific categories of fishermen to mitigate the increase in goods and service costs. – June 10, 2024