Minister of Domestic Trade and Consumer Affairs Shahrir Samad has announced that the current oil subsidy structure will be fully replaced in August.
Shahrir said any change in the subsidy scheme might result in a rise in petrol and diesel prices.
He said the scheme might be changed in August as stated earlier by Second Finance Minister Nor Mohamed Yakcop.
“It will happen. Petrol price will increase,” he said at the lobby of Dewan Negara yesterday.
However, he said Malaysians would still enjoy subsidies, but it would be given based on need.
The day of reckoning is coming this August. Many private car owners including myself will have to face higher petrol price, possibly 100% more.
We ask the government to consider two things:
1) Use the money saved from subsidy to improve the public transport system, as promised earlier.
2) Come out with a workable and effective strategy to improve productivity and income of fellow Malaysians. Malaysia cannot continue to be a low cost economy. We need to put our resources where the mouth is.
Immediate implications from the subsidy cut are drastic and painful. The government will have to readjust its own spending pattern - stop wastage and focus on meaningful assistance to the people.
Coming August, a lot of us will be tested if we can survive and grow without subsidy. Subsidy cannot go on forever. When subsidy goes out, good governance must come in.