PKR rebukes opposition leader Hamzah Zainudin for urging a delay in diesel subsidy reform, calling his stance misleading and fiscally irresponsible.
KUALA LUMPUR: Opposition Leader Datuk Seri Hamzah Zainudin’s statement on the diesel subsidy issue is deemed not to reflect the overall current economic facts and has the potential to mislead the people, especially when the government is implementing the restructuring of fuel subsidies.
Parti Keadilan Rakyat (PKR) deputy secretary-general Sivamalar Genapathy said the statement was seen as repeating an old narrative that was emotional without taking into account the need for subsidy reform to ensure the country’s fiscal sustainability.
She said the previous subsidy system was exposed to serious leakages that cost billions of ringgit every year, apart from some of which were not enjoyed by the local people but were instead misused through smuggling activities and use by ineligible parties.
“When they were given the mandate to govern, this leakage issue was left to linger without a thorough correction. The targeted implementation of diesel subsidies is important to close the leakage and ensure that the subsidy is only enjoyed by those who truly deserve it.
“The claim that the diesel price adjustment will burden the people must be viewed responsibly,” she said in a statement today.
According to Sivamalar, the targeted implementation of diesel subsidies also ensures that critical sectors such as logistics, public transport and agriculture continue to be protected through a special mechanism introduced by the government.
She said the government still maintained the subsidised price of RON95 at RM1.99 per litre compared to the market price of RON97 at around RM3.85 as a measure to protect the majority of the people, despite facing pressure on global oil prices following the conflict in the Middle East.
She said the government had also implemented various mitigation measures to control the chain effect on the cost of living, including the initial payment of the Rahmah Cash Contribution (STR) amounting to RM1.3 billion to 5.2 million recipients ahead of Aidilfitri.
In addition, special assistance was also channeled to civil servants, retirees and veterans, as well as appreciation to more than 70,000 imams, bilals, KAFA teachers and mosque management staff.
Sivamalar said the proposal to postpone the implementation of subsidy reforms may sound popular, but it does not resolve the fundamental issues and only reflects an approach without a clear direction.
“If you really want to protect the people, present a clear, comprehensive and implementable mitigation plan, not just cause concern or create narrow perceptions,” she said.
Hamzah previously said the increase in diesel prices by 80 sen to RM4.72 per litre should not be implemented at this time, but rather it is proposed to be postponed until after Aidilfitri or done in stages.
