Malaysian Prime Minister, Datuk Seri Anwar Ibrahim said the Malaysian Government remains committed to the rationalization of diesel subsidies even though the move may not be popular.
He further commented that the issue had been discussed for years by several previous prime ministers and he was determined to implement the initiative under his administration.
The implementation of subsidy cuts is a decision that is not easy to set. Most politicians will usually consider the impact on society before introducing the policy.
However, in the case of subsidy rationalization and tax increases, it will have a big impact on the government in managing the country's finances.
During his speech, Anwar also stressed that the implementation of targeted diesel subsidies will continue to be benefited by the vast majority of low-income people. Meanwhile, the rich and foreigners will not be able to benefit from the subsidy.
The money raised from the rationalization policy will not be used to increase ministerial allowances. It will be channeled back to the people in terms of subsidies and cash assistance.
In 2008, the difference in oil prices in Saudi Arabia was around 50 cents and Malaysia at RM1.50. Now, the price in Malaysia is around RM2.05 and there around RM2.95.
Anwar questioned the opposition's actions relating to his speech in 2008 regarding if he won the election that year, the price of oil would fall.
His statement also included three main measures of the government such as the adjustment of electricity tariffs, the floating of chicken prices and the implementation of targeted diesel subsidies. This step will see savings of approximately RM10 billion per year.
