Economy Minister Rafizi Ramli has confirmed the time frame for the Unity Government to end the blanket subsidy for RON95 fuel to all Malaysians in favour of a targeted subsidy approach.
In his keynote address at the National Economic Outlook Conference by the Malaysian Institute of Economic Research (MIER) at the Menara Affin Auditorium at TRX on Monday (27 November), Rafizi said that the targeted RON95 subsidy programme will be rolled out in the second half of 2024.
The Economy Minister took to his official Facebook page to share the gist of his keynote, saying that 2024 will be the year in which the Madani Government introduce new policies.
Besides the targeted RON95 subsidy, next year will also so the new progressive wage policy, with Rafizi also hoping that rakyat’s economy will also improve in 2024.
As for the targeted RON95 subsidy, the Economy Minister said that the current blanket subsidy model has allowed the top 20 per cent income group (T20) households to become 53% of the recipients of the subsidy.
Rafizi said that a subsidy programme largely benefitting the rich is both unsustainable and not equitable, hence the introduction of the targeted approach.
Furthermore, the Economy Minister said that the new RON95 targeted subsidy would immediately translate into a better fiscal position for the country.
So, what do you guys think of Rafizi’s statement? Share your thoughts with us in the comments.