PM: RM4bil savings from diesel subsidy reforms to fund public transport, cash aid

Prime Minister Datuk Seri Anwar Ibrahim giving speech at the Finance Ministry’s monthly assembly in Putrajaya this morning. - NSTP

PUTRAJAYA: The RM4 billion savings achieved from the implementation of targeted subsidies for diesel will be spent on covering public transportation costs and cash aids for the people such as Sumbangan Tunai Rahmah (STR), said Datuk Seri Anwar Ibrahim.

The prime minister said the cost of the STR, for example, had risen to nearly RM10 billion as the number of recipients had reached nine million people.

“This money (from the re-targeting of subsidies) is not used to increase the allowances of ministers or other ministries.

“The subsidy rationalisation is to ensure that the subsidies do not go to the ultra rich and to foreigners.”

He said this in his speech at the Finance Ministry’s monthly assembly here, this morning.

Anwar, who is also Finance Minister, said the subsidy rationalisation for diesel was the third initiative implemented by the government to restructure the country’s subsidy distribution system.

The first was a rationalisation of subsidies for electricity tariffs which would save RM4.5 billion, and subsidies for the sale of chicken, saving RM1.2 billion a year.

Source: New Straits Times


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