KUALA LUMPUR, June 12 — An additional RM4.22 billion is expected to be allocated from the government’s coffers to maintain the current subsidised fuel prices to weather an increase in global commodity prices, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said today.
Tengku Zafrul said the additional expenditure will come as a result of the government deciding to maintain the ceiling prices of RON95 at RM2.05 a litre, diesel at RM2.15, liquified petroleum gas (LPG) at RM1.90 per kilogramme and cooking oil at RM2.50 a pack against shifting global prices.
“A total of RM3.78 billion has been allocated for the year 2021 but based on the current global market prices, the government is expected to cover subsidies of up to RM8 billion, which is RM4.22 billion more than what was allocated,” he said in a statement today.
“The government is prepared to bear this increased subsidy expenditure to maintain the welfare of the people and the continuity of businesses, especially small-time businesses,” he added.
His statement detailed how RM6.32 billion was spent in subsidies by the government in 2019 and RM2.16 billion in 2020.
The minister also detailed how additional funds have been channellled to various initiatives and incentives as part of the many economic stimulus packages announced by the administration, with the latest being the Pemerkasa Plus package.
Tengku Zafrul said the latest Pemerkasa Plus package will see an additional RM2.1 billion allocated towards the Bantuan Prihatin Rakyat (BPR) cash aid programme, RM1.5 billion towards the Wage Subsidy Programme 3.0, and RM500 million for the Special Prihatin Grants 3.0.
Also listed is an additional RM2 billion channeled towards several programmes aimed at providing aid for small and medium enterprises (SMEs), RM68 million to be utilised as aid towards bus, taxi and e-hailing drivers, RM135 million towards offsetting discounts given for electric bills in six worst off sectors, and RM1.46 billion towards several tax incentives including the Home Ownership Campaign and off sales of passenger vehicles.