Government to Decide on Targeted RON95 Fuel Subsidy Mechanism
Cabinet to Make Decision in Coming Weeks
PETALING JAYA: The Cabinet will decide on the targeted RON95 fuel subsidy mechanism in the coming weeks, Economy Minister Rafizi Ramli announced today. The government plans to implement a new system based on households’ net disposable income, moving away from the current B40, M40, and T20 classifications, according to Free Malaysia Today.
New System to be Based on Households’ Net Disposable Income
The new system will be based on households’ net disposable income, which is expected to be a more accurate and effective way of identifying those who need the subsidy the most. This move is aimed at reducing government spending and leakages while ensuring support reaches households that need it most.
Padu Database to be Used to Identify Eligible Recipients
The government also plans to use the Padu database to identify eligible RON95 subsidy recipients. The database, containing data on 21 million Malaysians, was recently reopened for new registrations. This move is expected to help the government to better target its subsidy programme and reduce waste.
Economy Minister Confirms Timeline for Implementation
Economy Minister Rafizi Ramli confirmed that the government will finalize the proposal made by the economy ministry in a few weeks. He also emphasized that as soon as the government gets the green light, it is their duty to communicate the changes to the public.
Targeted Subsidy Programme Aims to Reduce Government Spending and Leakages
The targeted subsidy programme aims to reduce government spending and leakages while ensuring support reaches households that need it most. The programme is expected to be more effective and efficient than the current system, which has been criticized for being wasteful and benefiting those who do not need it.
Conclusion
The government’s decision to implement a targeted RON95 fuel subsidy mechanism is a step in the right direction. The new system is expected to be more effective and efficient than the current system, and will help to reduce government spending and leakages. The use of the Padu database will also help to ensure that the subsidy reaches those who need it most.
FAQs
Q: What is the new system based on?
A: The new system is based on households’ net disposable income.
Q: Why is the government moving away from the current B40, M40, and T20 classifications?
A: The government is moving away from the current classifications because they are not accurate and effective in identifying those who need the subsidy the most.
Q: What is the Padu database?
A: The Padu database is a database containing data on 21 million Malaysians, which was recently reopened for new registrations.
Q: When will the government finalize the proposal?
A: The government will finalize the proposal in a few weeks.
Q: What is the aim of the targeted subsidy programme?
A: The aim of the targeted subsidy programme is to reduce government spending and leakages while ensuring support reaches households that need it most.