PETALING JAYA: The increase in fares by Singaporean travel agencies and tour buses justifies Malaysia’s diesel subsidy rationalisation initiative, Prime Minister Anwar Ibrahim said today.
Speaking at a mosque in Bukit Mertajam, Anwar said the companies had attributed their price hikes to a lack of diesel subsidies.
“(This means that) for decades, our subsidies went to Singaporean companies and Thai fishing boats. A lot of funds were leaking.
“Subsidies were benefitting 3.8 million foreigners. (Diesel was) taken out to Thailand and sent to Thai fishing boats. Malaysian taxpayers were paying (for the subsidies), but foreigners were reaping the benefits,” he was reported as saying by Bernama.
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He also said that targeted diesel subsidies were crucial to saving Malaysia’s finances as they stemmed the leakage of funds overseas.
In February, domestic trade and cost of living minister Armizan Mohd Ali said three million litres of diesel were being smuggled out of the country daily, causing losses of RM4.5 million per day.
Federation of Malaysian Consumers Associations CEO Saravanan Thambirajah was also previously reported as saying that the fleet cards which allow eligible commercial vehicle operators to purchase subsidised diesel at designated stations help weed out black market operators and smugglers.
The targeted diesel subsidies began on June 10, with the new price set at RM3.35 per litre.
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