Proposed fuel subsidy scheme requires more review – Abd Karim

October 29, 2014

KUCHING: The implementation of full fuel subsidy for those earning under RM5,000 monthly needs to be studied further.

Abdul Karim speaking to reporters after opening the event at a hotel in Kuching.

Assistant Housing Minister Datuk Abdul Karim Rahman Hamzah said although such move was directed at alleviating financial burden of the people, its implementation must be evident.

According to him, the very definition of high income earners remains unclear.

“There must be a mechanism in categorising (those) who are eligible to receive the subsidy and who are not. The main intention is to assist the people, but if there are loopholes that some can take advantage of, then it will defeat the purpose,” he told reporters after officiating at a conference here yesterday.

The assistant minister was asked for his comment regarding the recent announcement made by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, proposing for the subsidy rationalisation scheme to be carried out next year.

Husni said those earning below RM5,000 per month would receive full subsidy while those with monthly pay between RM5,000 and RM10,000 would get partial subsidy.

On the other hand, those earning more than RM10,000 per month would not be eligible.

Husni also said the mechanism was still being reviewed by the Domestic Trade, Cooperatives and Consumerism Ministry.