Latest news with #fuelsubsidies
Free Malaysia Today
20 hours ago
- Business
- Free Malaysia Today
Address RON95 subsidy cut before carbon tax, says Amir Hamzah
Finance minister II Amir Hamzah Azizan said Malaysia must address the issue of fuel subsidies, particularly involving the energy sector. PETALING JAYA : The government will prioritise the rationalisation of RON95 petrol subsidies this year before introducing a carbon tax in 2026, says finance minister II Amir Hamzah Azizan. Speaking at a forum today, he said Malaysia must first address the issue of fuel subsidies, particularly involving the energy sector. 'We must ensure that no unintended consequences are embedded in our system. While (the carbon tax) is scheduled for rollout by 2026, there are important precursor steps we must take. 'A key objective now is to begin scaling back subsidies (to the energy sector). It doesn't make sense to impose taxes on one side and simultaneously provide subsidies for petrol, diesel, and other fuels,' Bernama reported him as saying. Amir Hamzah was speaking at a session titled 'Delivering Malaysia's Energy Transition' where he was a panellist alongside deputy energy transition and water transformation minister Akmal Nasrullah Nasir. The session was chaired by Abdul Wahid Omar, a senior independent and non-executive director of IOI Corporation Bhd. The government previously announced plans to roll out a carbon tax targeting the iron, steel, and energy industries by 2026, as outlined in Budget 2025. Amir Hamzah also emphasised that subsidy rationalisation is a critical step toward establishing a strong foundation for building sustainable mechanisms and policy frameworks. 'As a result, we can expect the introduction of structured measures, including climate action frameworks, robust measurement tools and ultimately the implementation of a carbon tax to support these initiatives. 'If we want this transition to be sustainable and impactful, the entire system must respond. It cannot be driven by isolated announcements or standalone policies. The challenge for the government is to tie everything together coherently and effectively,' he said. Yesterday, Prime Minister Anwar Ibrahim said adjustments to the price of RON95 petrol would not affect 85% to 90% of the population. He said the government's move towards subsidy rationalisation is a critical step to ensure national resources are channelled effectively to benefit the lower-income group.
Free Malaysia Today
24-05-2025
- Business
- Free Malaysia Today
Top 5% may be excluded from RON95 fuel subsidy scheme, says Anwar
PKR president Anwar Ibrahim delivering his winding-up speech at the party's national congress in Johor Bahru today. JOHOR BAHRU : Prime Minister Anwar Ibrahim has proposed excluding the wealthiest 5% of the population from receiving the targeted RON95 fuel subsidies under a scheme expected to be implemented this year. In his winding-up speech at the PKR national congress today, the party president, who is also the finance minister, said the targeted subsidies idea should not be rejected. 'If we implement this, perhaps we'll start with the top 5% – the ultra-rich. 'This group of people won't air their grievances themselves. Instead, they will get two or three MPs to speak on their behalf,' he said, without specifying who he was referring to. Anwar also said foreigners would continue to be excluded from benefitting from the targeted subsidies for RON95. Currently, foreign vehicle owners are not allowed to purchase the subsidised RON95 fuel at petrol stations. 'These foreign vehicle owners are costing us an estimated RM3 to RM4 billion in subsidies. 'So if we withdraw these subsidies, it simply means those buying fuel will need to show their MyKad, or we'll come up with other detailed mechanisms to identify eligible recipients. 'No country in the world gives subsidies to foreigners. And where else do you see fuel subsidies for someone who owns a Rolls-Royce? 'Many opposition MPs end up acting as spokesmen for the ultra-wealthy, the ones with Rolls-Royces, and then they get PAS MPs to defend them,' he said. Last December, economy minister Rafizi Ramli said the government would announce the T15 high-income classification, which will identify those to be excluded from targeted subsidies, by the first quarter of 2025. On Monday, he was quoted as saying that the decision on the RON95 fuel subsidy rationalisation plan had been handed over to the finance ministry following a Cabinet decision. He said his ministry had engaged with the Cabinet four times regarding this matter and the current position was to await further updates from the finance ministry.
Bloomberg
10-05-2025
- Business
- Bloomberg
Egyptian Inflation Little Changed With More Rate Cuts on Horizon
Subscribe Egyptian inflation slightly accelerated for a second month, an anticipated quickening driven by a cut in fuel subsidies that's unlikely to put the brakes on a long-awaited monetary-easing cycle.
