Second Finance Minister: Focus on diesel mechanism optimization and not push forward RON95 subsidy reform

Second Finance Minister Dato' Sri Amir Hancha stressed that the government's top priority is to implement targeted subsidy measures for other matters such as targeted diesel subsidies and RON95 gasoline, which are still not on the agenda.

Amir Hancha told reporters after the opening of the 2024 Bank of China economic seminar held for the Bank of China today that the current government is fully focused on implementing the targeted diesel subsidy policy, and will only begin implementing other targeted subsidies after completing this matter.

“Implementing targeted diesel subsidies is the government's current focus, and we won't consider anything else until the situation stabilizes.”

After the government began implementing the diesel price fluctuation mechanism on Monday (10th), whether RON95 gasoline will follow suit has become a matter of public concern. Amir Hancha's speech today may give the public a sigh of relief.

Amir Hancha reiterated that in order to build a better future for the country, structural reforms are imperative, and that through targeted diesel subsidies, the government can prevent the loss of billions of ringgit due to diesel smuggling and the misuse of subsidies, and use the funds to improve the country's prospects.

“It's clear that targeted diesel subsidies are not a welcome measure. Considering the current macroeconomic environment, steady growth and slowing inflation, we are boldly taking a step forward and implementing a targeted subsidy mechanism for diesel.”