Subsidy rationalisation move gets qualified approval

Free Malaysia Today

Experts and stakeholders agree that introducing targeted subsidy for diesel will bring benefits but some also caution that it may not stop businesses from raising prices.  Read More: https://www.freemalaysiatoday.com/category/highlight/2024/04/17/subsidy-rationalisation-move-gets-qualified-approval/  Laporan Lanjut: https://www.freemalaysiatoday.com/category/bahasa/tempatan/2024/04/17/rasionalisasi-subsidi-dapat-persetujuan-pakar/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTBusiness #Diesel #Subsidy #Inflation

Transcript

00:00 The government's decision to remove the diesel subsidy for private vehicles but maintain

00:06 it for commercial use has generally gone down well, but concerns remain among experts and

00:11 stakeholders.

00:13 The plan is to divert the savings from the diesel subsidy rationalization to meet other

00:18 needs such as cash handouts to the most needy to help them defray increases in costs.

00:23 Ye Kim Lang, a senior fellow at the Jeffrey Sachs Center on Sustainable Development at

00:28 Sunway University, said that maintaining the subsidy for commercial vehicles will prevent

00:32 a sharp increase in the prices of goods and services, ensuring that there is no knock-on

00:37 effect on inflation.

00:39 Ye said the removal of subsidies for fuels will also pave the way for the adoption of

00:44 electric vehicles to meet the country's goal of achieving net zero carbon emission by 2050.

00:50 However, Saravanan Tambirajah, CEO at the Federation of Malaysian Consumers Associations,

00:57 warns that the move may still lead to indirect price increases.

01:01 He said employees who drive diesel-driven vehicles may demand higher wages to compensate

01:05 for the rise in fuel costs.

01:08 Meanwhile, economist Barjoya Ibardai of Unitar University pointed out that the impact of

01:13 the subsidy rationalization for diesel will be minimal for private vehicle owners given

01:18 the low amount of fuel they consume individually.

01:21 (upbeat music)

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Transcript

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