KUALA LUMPUR: The implementation of a targeted diesel subsidy for consumers in Peninsular Malaysia, expected to save RM4 billion annually, will strengthen the government's fiscal position and improve resource allocation while reducing fossil fuel consumption and carbon footprint.
"These targeted subsidies will mitigate the adverse impact on inflation while generating substantial savings, particularly by reducing leakages and cross-border smuggling,” he told Bernama. Anwar also mentioned that the subsidy would involve 10 types of public transport vehicles and 23 types of goods transportation vehicles under the diesel subsidy control system.
"Likewise, consumer inflation will be directly affected, but monitoring and enforcement by the relevant authorities need to be stepped up to prevent unjustified price increases by businesses, especially in the transport sector,” he added.