KUCHING: Fuel subsidy reforms risk falling short unless enforcement and MyKad-linked systems are tighten, opined Damith Senanayake.
Senanayake, a local well-known Ceylonese Restaurant owner, said the success of Malaysia’s shift to targeted RON95 subsidies depends on how well implementation is managed, particularly in verifying eligibility and enforcing pricing.
“Implementation, especially around MyKad access and pricing enforcement, are crucial,” he said.
Senanayake expressed that while the RM1.99 RON95 pricing and RM100 MyKad credit offer are modest, and are seen as a relief to many Malaysians, he alluded that the broader goal should be fairer, emphasising efficient public spending.
“This subsidy restructuring marks a meaningful step toward fairer and more efficient public spending,” he said.
He cautioned that policy missteps could compromise Malaysia’s long-term fiscal health.
“Policymakers must tread carefully to maintain fiscal sustainability and avoid derailing Malaysia’s longer term economic goals,” he said.
As announced by Prime Minister Datuk Seri Anwar Ibrahim recently, the targeted subsidy scheme will see RON95 petrol priced at RM1.99 per litre for eligible Malaysians with MyKads.
Foreigners and non-citizens would have to pay the full unsubsidised rate.
Anwar said that he would ensure the implementation of the rate’s reduction to RM1.99 per litre before the end of September.
“This is quite a sharp drop, and involves increased cost to the government.
“However, this approach is in line with the government’s efforts to optimise national resources for public benefit and reduce subsidy wastage,” Senanayake added.
