Petroleum subsidies projected to hit RM40bil this year

KUALA LUMPUR: This year, Malaysia's government is expected to spend RM40 billion on petroleum subsidies, driven by a global supply crisis that has pushed crude oil prices above US$120 per barrel. Prime Minister Anwar Ibrahim disclosed that fuel subsidies skyrocketed from RM800 million monthly in January and February to nearly RM5 billion in March and April.

Nevertheless, the subsidy burden saw a drop to about RM3 billion between June and August. Anwar, who serves as both Prime Minister and Finance Minister, emphasized the government's balanced approach to shield Malaysians from escalating fuel costs while securing the nation's fiscal stability. He explained that the government has adjusted its annual spending to prioritize initiatives with the most significant impact on people and the economy, ensuring that essential services like education, healthcare, and financial aid remain unaffected.

Addressing questions from opposition lawmaker Mohd Shafie Apdal, Anwar pledged to enhance fiscal discipline through tighter operating expenditure, improved public spending efficiency, and reduced subsidy leakages. The administration will also intensify enforcement efforts to guarantee that aid and subsidies reach those truly deserving, thereby optimizing the utilization of public funds.

Anwar concluded, reiterating the government's commitment to balancing the necessity to protect Malaysians from surging fuel prices with prudent expenditure management, ensuring that the higher subsidy costs can be absorbed without jeopardizing the country's fiscal stability.