KUALA LUMPUR: The implementation of targeted subsidies is done to save the country, said Prime Minister Datuk Seri Anwar Ibrahim.
At the Prime Minister's Department monthly gathering here this morning, Anwar said the government had to make several unpopular measures to stabilise the economy.
"Who wants to implement targeted subsidies? We must realise that whatever we do, we will be attacked with all sorts of lies and accusations.
"Those wearing songkoks, robes, turbans, but continue to lie when we've told them that all prime ministers before this had agreed to implement targeted subsidies but there has been no political will to do so," he said.
Last month, the cabinet agreed to implement targeted subsidies on fuel, starting with diesel, which is projected to save the country RM4 billion annually.
On May 21, Anwar announced the fuel subsidy rationalisation exercise in a national address. He said subsidies for diesel would be withdrawn for "the rich and foreigners."
To prevent any drastic increase in the cost of goods and services, he said subsidies would be continued for traders using diesel-powered commercial vehicles and for public transportation.
Diesel subsidies will also continue for certain categories of fishermen.
A cash aid would also be given to eligible individuals who own private diesel-powered vehicles, such as small traders and farmers, among others.
Yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that diesel subsidies for certain groups in Peninsular Malaysia would be discontinued. This started at 12am today (June 10).
He said this would put the price for a litre of diesel at about Rm3.35 per litre according to the automated pricing mechanism from the current price at about RM2.15.
He said it follows the unsubsidised market price based on the average for May 2024, according to the automatic pricing mechanism formula.
