The economy is getting tighter, subsidies are getting tighter, but is the two-tier RON95 pricing system really the best solution, or just creating new problems?
Now, economists agree that the two-tier pricing system for RON95 is more effective than cash assistance, but new challenges still await!
Dr. Tan Peck Leong from UiTM believes that this model ensures that only those who are eligible receive subsidies, thus reducing the leakage of funds to those who should not enjoy it.
However, is it all sweet?
Economist, Geoffrey Williams warned that the use of MyKad and e-wallets in this system could open up space for fraud, card cloning, and the buying and selling of subsidy access.
If not closely controlled, this system may create a black market that is harder to curb.
Although this mechanism is expected to be better at controlling inflation, the main question is still unanswered – are the people really ready to face this change?
If implemented poorly, two-tier pricing may not be a solution, but another new hole in the country's subsidy system.
