Rafizi says RON95 targeted subsidy to start after June 2024

THE government would roll out the targeted RON95 subsidy scheme in the second half of 2024, Economy Minister Rafizi Ramli said.

He said a country where the T20 income group receives 53% of blanket fuel subsidies is neither sustainable nor equitable.

“Given our public finances ran a fiscal deficit of more than 5% for three consecutive years, we must find new avenues to mobilise our resources and reduce wastages within the system,” he said during his keynote address at the National Economic Outlook Conference in Kuala Lumpur today.

Rafizi said the subsidy retargeting programme would immediately push the country to a better fiscal position.

He also said his ministry would table the progressive wage policy at parliament on Thursday to address the systemic issue of low wages in Malaysia.

The minister said the government was mindful that wage growth must be driven by productivity via upskilling efforts.

“This has been emphasised by the five HGHV (high-growth, high-value) sectors identified in the (12th Malaysia Plan) mid-term review, where we want to focus on creating a greater proportion of tech-frontier jobs.

“It remains shocking to me that our median wage is only RM11 above the poverty line,” he said. – Bernama, November 27, 2023.