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October 3, 2014

Fuel subsidy reduction not popular move, but will benefit Malaysians

Every action of the Government, including to reduce fuel subsidy, is meant for the benefit of the people, said Prime Minister Datuk Seri Najib Tun Razak.

He explained that the move by the government to reduce fuel subsidy was to look after the interest of Malaysians and the country in the long run.

Najib said although the move was unpopular, it had to be carried out as the fuel subsidy borne by the government each year was too high.

"Petrol prices did not actually increase. It is just that the subsidies have been reduced,” Najib said.

In fact, he said, if the move had not been taken, it would have an impact on the national economy due to the reduced revenue for national expenditure.

"Last year, the subsidy for fuel, petrol, LPG and diesel amounted to RM24bil which was not a small amount.

"If we don't reduce the amount, it could result in insufficient revenue to pay for government expenditure," Najib said before handing out Hari Raya Haji contributions for each Pahang parliamentary constituency here, Friday. 

Najid also said the government would announce various measures to assist the rakyat during the tabling of Budget 2015 on Oct 10.

Najib, who is also the Finance Minister, said this included the giving out of targeted subsidy directly to the people such as schooling aid, 1Malaysia People's Aid (BR1M) and other assistance.

"In the next Budget, we will certainly think of how to assist the people so that the aid reaches them directly, and reduce the leakage, so that the economy will be stronger to ensure more revenue for the people," he said.

Najib said the government would also review the granting of bulk subsidy for fuel.

- The Star