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From Finance Minister:

The MoF had announced that diesel retail price in Peninsular Malaysia will be adjusted to the current market price of RM3.35 per litre from 10 June 2024.

Aside from ensuring financial sustainability for the country, the main intention of rationalising the diesel subsidy is to address the widespread issue of illegal smuggling and misappropriation of subsidised diesel.

This is a pivotal economic reform measure that will contribute to raising the ceiling to create more fiscal space under the Ekonomi MADANI framework. It is expected to generate approximately RM4 billion in savings that will go towards raising the floor initiatives to improve the quality of life for the rakyat through investments into sectors such as public infrastructure, health care, and education.

To ensure that the subsidy rationalisation has minimal adverse impact on the rakyat, the government has vested considerable time to identify Malaysians who would be most affected by it, and ensured that the mechanism to deliver targeted subsidies to these groups is in good form.

This includes vehicles for basic public services under the Sistem Kawalan Diesel bersubsidi (SKDS) 1.0; logistics and transportation vehicles under SKDS 2.0 to control price inflation of every day goods; BUDI MADANI Individu for Malaysians who earn under RM100k per annum; and BUDI MADANI Agri-Komoditi to protect Malaysian farmers and commodity small holders.

Through this detailed and targeted exercise, we aim to deliver subsidies in the most appropriate form to those who truly deserve it.

It has been months of hard work together with the Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup (KPDN), Kementerian Pertanian dan Keterjaminan Makanan (KPKM) dan Kementerian Perladangan dan Komoditi (KPK). An all-of-government effort to bring us another step closer to achieving our long-term targets under the Ekonomi MADANI plan.