SHAH ALAM: Malaysia remains firmly on course to achieve its budget deficit target of 3.8% of GDP this year following the implementation of the BUDI MADANI RON95 targeted subsidy programme.
Finance Minister II Datuk Seri Amir Hamzah Azizan confirmed the government’s fiscal trajectory during a media briefing on the new subsidy initiative.
He revealed that the government anticipates annual savings ranging from RM2.5 billion to RM4 billion through the targeted RON95 subsidy mechanism.
Amir Hamzah stated that the programme aims to replicate the notable success achieved by the targeted diesel subsidy system.
The targeted diesel subsidy has already surpassed initial expectations by generating estimated savings between RM6 billion and RM7 billion.
These diesel savings significantly exceed the government’s original target of RM4 billion for that particular programme.
“For RON95, subsidies will be removed for ineligible groups, allowing savings of RM2.5 billion to RM4 billion,“ he said.
He further clarified that the final savings figure will be directly influenced by fluctuations in global oil prices.
Amir Hamzah explained that any increase in world oil prices would correspondingly raise the overall subsidy expenditure for eligible Malaysians.
The government will transfer the full market fuel cost to individuals and entities who do not qualify for the targeted assistance.
This approach will enable the resulting financial savings to be redirected back into national fiscal management.
Recent reports indicated that the government’s savings estimation is calculated based on crude oil trading at approximately USD75 per barrel.
Prime Minister Datuk Seri Anwar Ibrahim previously announced a reduction in RON95 petrol pricing from RM2.05 to RM1.99 per litre effective September 30.
The price adjustment forms a central component of the newly launched BUDI95 subsidy programme.
Anwar confirmed that all Malaysian citizens holding a valid driving licence are eligible to receive the subsidised fuel.
Government records from the Road Transport Department and National Registration Department indicate more than 16 million citizens will benefit from the initiative. – Bernama
