8 Oct 2019
Press statement by MCA Tanjung Piai Chairperson Dato’ Sri Wee Jeck Seng
RM12 & RM30 fuel subsidies monthly unsubstantial to help low-income group
The new fuel subsidy announced by the Ministry of Domestic Trade and Consumer Affairs (MDTCA) is insignificant in alleviating the burdens of low-income earners. Moreover, if the existing fixed price for RON95 petrol is removed, when the international oil prices increase, these meagre RM30 and RM12 subsidies will become meaningless.
Pakatan Harapan spent RM25 million to conduct a study regarding the mechanism for fuel subsidies, yet they have the audacity to come up with such a shoddy framework and call it a day. During the study, did it ever crossed their minds to factor in the rise of international oil prices?
Shouldn’t the government also take into consideration the chain-reaction that stems from oil prices increase, such as the inflation of goods? Bearing the brunt of the force, low-income earners will struggle to make ends meet even if their petrol spending can be completely subsidised.
Last year in October, Finance Minister Lim Guan Eng announced the fuel subsidy system during Budget 2019; 1 year later, we are greeted with this ill-conceived result. To make matters worse, for Malaysians to receive this RM30 monthly subsidy, there is still a waiting period until next year-April 2020.
After spending such a big sum of money to engineer this plan, this should not be the results that the Pakatan government expects the people to take for granted. Conversely, there must be a comprehensive plan for the mechanism to reach its sole objective within a projected time, that is-to alleviate the B40 group’s burden.
Dato’ Sri Wee Jeck Seng
MCA Tanjung Piai Chairperson