Political backlash or lack of cash? Delicate balance confronting Malaysia PM Anwar in cutting diesel subsidies

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Social observers have suggested that the government had considered using caution when implementing the subsidy cuts because it might lose help from the general public.

Shahril Hamdan, the former information head of the United Malays National Organization ( UMNO ), claimed Mr. Anwar’s cautious speech sounded like a budget speech.

He said in an interview with his Keluar Sekejap podcast on Wednesday ( May 22 ),” I’m not sure if there was anything really new besides some details about targeted subsidies.”

His co-host, former health minister Khairy Jamaluddin, claimed that Mr. Anwar had attempted to create a narrative that the reform of the subsidies system would take place immediately. &nbsp,

He said,” It was to soften the ground and get people ready that this was going to happen,” adding that it was a fair address. &nbsp, &nbsp,

But, Mr. Anwar did not specify when the diesel subsidy rationalization may be implemented, but he claimed that the government would grant oil subsidies to businesses that use a few professional diesel vehicles to prevent a significant price increase.
  
Buses and cars are two examples of the 10 different types of public transportation vehicles and the 23 different types of goods travel cars under the Subsidized Diesel Control System. &nbsp,

Additionally, Mr. Anwar added that cash donations would be distributed to entitled personal diesel vehicle owners. &nbsp,

He added that some people may question the cohesion government’s decision to start a “brave” target for diesel subsidies.

Now, gasoline is sold at a price of RM2.15 per gallon. RON 95 diesel, one of the most common petrol sorts in Malaysia, however is sold for RM2.05 per gallon. &nbsp,

Energy costs in Malaysia are among the lowest in the world. &nbsp,

Anwar added that cover subsidies in Malaysia were required to end, citing their status as one of the highest in the world. &nbsp,

” What for? The ultra-rich benefit more from cover grants because they consume or spend more money on goods and services. 3.5 million immigrants also benefit from … subsidies”, he had said in the same statement. &nbsp,

According to Mr. Anwar, those who really needed the support would receive the profits from providing cover subsidies. &nbsp, &nbsp,

In the past, there have been cover subsidies for grain, cooking petrol, and power. &nbsp,

However, the government has recently made an effort to reduce incentives, with the state ending subsidies and cost controls for poultry and those who use more than 600kWh of power since last year.

In his address, Mr. Anwar also touched on fraud and the country’s fragile governmental situation, with the need to boost both tax profits and reduce incentives. &nbsp, &nbsp,

According to Mr. Anwar, the government’s debt amounted to RM1.2 trillion, or 64.3 % of GDP, and, if other liabilities were taken into account, it would amount to RM1.5 trillion, or more than 80 % of it.

” This… loan is a waste of the person’s income because a lot of it is used to pay attention. This year, every one ringgit we collect in tax, 16 cents is used to pay interest: we have n’t even spoken about the principal”, he said during his May 22 address.

Opposition leader Hamzah Zainudin claimed that Anwar’s speech, which cut fuel subsidies, may have caused inflation in the country as people would be burdened by the skyrocketing cost of living, had caused uneasiness among the electorate.

He claimed that the discussion was about when the fuel payment rationalization may take effect and what was the president’s strategy for distributing aid to people.

” The people want to know when gasoline prices will increase,” the statement read. How do they submit an assist application? This was not clearly stated. He stated in a speech on May 22 that the state is still implementing the concept of announcing first and thinking afterwards.

The launch date springs on what functions are in place to ensure a easy execution, say experts. &nbsp,

Datuk Armizan Mohd Ali, the minister of local business and cost of living, stated on May 23 that discussions were ongoing regarding how the fuel program may be implemented, and especially how aid may be distributed to targeted groups.

We wo n’t set a date as long as the Cabinet is unhappy with the system, especially with regard to how target groups will be given the aid. An announcement will be made on the start time once the state has finalized this aspect, he was quoted as saying by The Star.