Malaysia can sustain RON95 subsidies for now but is prepared to adjust policy if West Asia crisis pushes global oil prices higher
IPOH: The government is still able to sustain the RON95 petrol subsidy for now but is prepared to adjust its policy if costs continue to rise due to the crisis in West Asia.
Political secretary to the Finance Minister, Muhammad Kamil Abdul Munim, said being prepared is crucial to ensure economic stability without neglecting public welfare, despite the risk of rising global oil prices.
“For now, the subsidy is still being maintained, but we must be ready for any possibility. No country can withstand rising costs if it continues with the same economic approach.
“We need to adapt according to current needs to ensure the overall economy remains stable. However, this does not mean neglecting the rights and welfare of the people, as policies will be adjusted based on the situation,” he told a press conference after officiating the Karnival Kita MADANI X Program MADANI Rakyat (PMR) 2.0 for Perak here today.
He said Malaysia is able to cope due to cost-saving measures and subsidy restructuring implemented earlier.
He noted that the increase in subsidy costs is significant, rising from RM700 million to RM4 billion a month.
On Petronas’ profits following higher global oil prices, he said Malaysia still needs to import oil to meet domestic demand.
“We do not rely solely on Petronas’ oil, as we import to meet our needs. Not all Petronas profits can be used to subsidise domestic fuel prices.
“The dividends provided are limited and are used to support fuel pricing and Petronas’ operational needs,” said the Angkatan Muda Keadilan (AMK) chief.
Meanwhile, he described the proposal to hold a special briefing for opposition leaders next week as appropriate.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said the government plans to convene top state leaders and political party representatives for a special briefing next week to address the West Asia crisis.
