As everybody seemingly is aware of, the federal government has lengthy talked about phasing out the present blanket subsidy system instead of focused gasoline subsidies. Whereas there was no particular point out of it within the tabling of Price range 2024 final week, it has beforehand been advised that the federal government was anticipating to implement its focused subsidy programme early subsequent 12 months.

Whether or not this stays on monitor has but to be confirmed, however the discuss a mechanism for it continues. Prime minister Datuk Seri Anwar Ibrahim says that the federal government is contemplating offering subsidies to the individuals by money switch. This, he instructed the Dewan Rakyat, would assist forestall leakage, as Bernama reviews.

“This (money switch) strategy has been thought-about in a number of points, and we are going to announce this extra extensively later,” he stated in the course of the minister’s query time in parliament yesterday. He stated this in reply to a query from Datuk Mohd Shahar Abdullah (BN-Paya Besar), who needed to know whether or not the federal government is planning to offer subsidies on to the rakyat by money switch.

Nevertheless, Anwar, who can be finance minister, stated that the money switch wouldn’t be applied for all subsidies, however just for particular ones. He didn’t element which subsidies would contain money transfers.

Malaysia has not revealed the mechanism it should use to dispense focused subsidies. Final month, deputy finance minister Steven Sim stated the federal government is exploring numerous mechanisms, together with utilizing the MySejahtera software for the aim. Apart from money switch, the weather being studied additionally embrace a card system.

The upcoming Pangkalan Knowledge Utama (PADU) socio-economic database will assist decide who will get subsidies, and who won’t. Beforehand, it was reported that the federal government would start its focused gasoline subsidy with diesel, and this was reiterated in Price range 2024, with the announcement that diesel subsidies can be rationalised in phases.

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