Fuel subsidy targeting should go beyond income tiers and include household expenses, says Economy Minister Akmal Nasrullah.
KUALA LUMPUR: The implementation of targeted fuel subsidies must take into account reasonable household living expenses to ensure the programme truly benefits the intended groups.
Economy Minister Akmal Nasrullah Mohd Nasir said the mechanism should not be based solely on income classification, as the financial commitments of households differ.
“The challenge is determining the most suitable threshold or level to apply. From the ministry’s perspective, the matter needs to be assessed more comprehensively.
“We do not want to create classifications that can be debated from different perspectives because economic conditions are not measured solely by income, but also by reasonable basic expenses and other related factors,” he said
He told reporters this after the launch of the strategic collaboration between the Economy Ministry and the Federal Territories Islamic Religious Council (MAIWP) under the People’s Income Initiative–Food Entrepreneur Initiative (IPR-INSAN), officiated by Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan here today.
Elaborating, Akmal Nasrullah said the ministry was refining the subsidy targeting mechanism to strengthen fiscal management, particularly for diesel subsidies.
“We know that as long as conflicts remain unresolved, the burden will continue to be shared by all of us. That is why mitigation and intervention measures are introduced from time to time,” he said.
Asked about the impact of the meeting between United States President Donald Trump and his Chinese counterpart Xi Jinping on the global economy, Akmal Nasrullah said the ministry’s primary focus remained on strengthening domestic economic resilience.
“Whatever developments are taking place on the global stage, we certainly hope the situation will stabilise. However, for Malaysia, we must ensure continuity in the supply of fuel and other essential goods.
“We are doing our best to sustain our resilience, but it is beyond me to comment further on the matter at this stage,” he said.
