The official fuel subsidy bill is expected to be RM28b for 2022, the blanket subsidy will end

A target energy process will be implemented soon, as the government cannot provide blanket subsidies due to the sharp jump in fuel prices.

The government’s total energy subsidy bill is currently expected to be RM28 billion for 2022, a sharp increase from RM11 billion in 2021.

MITI senior minister Ajmin Ali made the remarks at a news conference in the United States today, where he is currently on a trade and investment promotion mission.

We have been hearing this message for some time now. Finance Minister Tenku Datuk Seri Jafrul Tenku Abdul Aziz said Malaysia’s T20 group used more than half of its energy subsidy bill. So that 20% of people use more than 50% of the subsidy. So my idea is to stop using this 20% subsidy, the government saves 50% of its subsidy bill every year?

The question is how the target subsidy will be implemented? The government has proposed various ways in the past. In 2008, the government decided to subsidize RM625. It was paid when you renewed your road tax. Each car had a fuel subsidy, up to a maximum of 5 and the car must have an engine cc of 2,000 or below.

In 2014, there was another plan where those earning below RM5k per month would get full subsidy, while those earning between RM5k and RM10k would get only partial subsidy. There is no subsidized fuel for those who earn five figures a month. This plan never happened.

But that was in the past. Thanks to the epidemic, the current government is now accustomed to crushing the data it has and subsidizing it based on what it knows about how much each rak’at earns.

The easiest way to pay off energy subsidies is to sell at the market price at the pump and subsidize the way cash assistance such as Bantuan Keluarga Malaysia, Bantuan Prihatin Rakyat and Bantuan Khas Covid-19 has been provided in the past. . If you think you are eligible but have somehow been left out of the automated qualification process, there is a way to appeal.

How do you think the targeted energy subsidy project should be implemented?

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