Prime Minister Anwar Ibrahim Unveils Fuel Subsidy Rationalisation Plan

Market Prices for Fuel Only for the "Very Rich"

Datuk Seri Anwar Ibrahim, the Prime Minister of Malaysia, recently announced a significant development in the country’s fuel subsidy system. Here are the key points from his statement:

• The fuel subsidy rationalisation under Budget 2025 will ensure that the subsidies will remain for 85% of Malaysians.
• The government aims to target 15% of the very rich and foreigners who are currently benefiting from blanket subsidies.
• This rationalisation exercise is expected to save the government approximately RM8 billion annually, as the current fuel subsidies cost RM20 billion each year.
• The savings from this exercise will be redirected towards helping the poor and needy in the country.
  

  Why the Rationalisation Exercise?
  

  Anwar emphasized that the existing subsidies are being enjoyed by the rich and foreigners who can afford to pay market prices for fuel. He highlighted the following reasons for the rationalisation exercise:

• The stable political situation in the country allows for such policy changes.
• The government aims to ensure that subsidies are targeted towards those who truly need them.
  

  Implications for the Public
  

• For the majority of Malaysians, the subsidised price of RM2.05 per litre will remain unchanged.
• Anwar addressed critics who opposed the idea of raising fuel prices, questioning whether they were concerned about price increases for foreigners and the very rich.
• It is worth noting that petrol prices in Malaysia are currently lower than in several neighboring countries, including Singapore, Thailand, Indonesia, and the Philippines. Even in Saudi Arabia, a major oil producer, the price of petrol is higher at RM2.65 per litre.

  In conclusion, the fuel subsidy rationalisation plan introduced by Prime Minister Anwar Ibrahim aims to ensure that subsidies are targeted towards those who truly need them, while reducing the burden on the government’s finances. This move underscores the government’s commitment to social welfare and financial responsibility.

  It is essential for Malaysians to understand the rationale behind this policy change and its potential impact on their daily lives and financial well-being. By focusing on targeted subsidies, the government can better support those in need and create a more sustainable and equitable system for all citizens.