KUALA LUMPUR (March 18): The mechanisms to implement targeted subsidies are still under consideration, and are not expected to increase industry costs, according to Deputy Finance Minister Lim Hui Ying.

She said the government will, however, stress on the effective implementation and communication to industry members in order to prevent “economic shocks".

“The implementation of targeted subsidies will be done in stages subject to preparedness based on the appropriate model and feasibility, while retaining the government’s focus on ensuring the people’s cost of living is not affected,” she said during a question-and-answer session in the Dewan Rakyat on Monday.

Lim was responding to a query from Vivian Wong Shir Yee (Pakatan Harapan-Sandakan), who wanted to know the exact method that the government will use to introduce the targeted subsidy scheme.

Lim said that the government is focusing on targeted diesel subsidies through the method and mechanism announced by the Ministry of Domestic Trade and Cost of Living on March 6.

“For the expansion of subsidies under the Subsidised Diesel Control System 2.0 (SKDS 2.0) pilot project to nine types of commercial vehicles, applications have been open since March 7. More than 260,000 vehicles are expected to receive the benefit,” she said.

Lim said that from March 8 to 16, more than 5,800 companies with over 34,400 vehicles had registered.

“Therefore, the government urges all eligible vehicle owners to register under SDKS 2.0, in order to continue enjoying the subsidy in the future,” she said.

Lim assured that the public transport category under the existing SKDS, which covers school buses and vans as well as fishermen, will continue to enjoy the present diesel prices, and will not be involved in the targeted diesel subsidy programme.

“All diesel vehicles in the public transport category under the present SKDS are enjoying a subsidised diesel price of RM1.88 per litre, while fishermen can get subsidised diesel at RM1.65 per litre,” she noted.

She said that the government, through the Ministry of Domestic Trade and Cost of Living, is committed to the implementation of continuous control on the marketing and distribution of controlled subsidised goods to curb misappropriation.