IF the targeted subsidy for RON95 petrol becomes a success, the government will consider extending it to other subsidised consumer items, Saifuddin Nasution Ismail said.

The domestic trade and consumers affairs minister said there were currently leakages across the board which cost the government.

“We intend to extend the targeted subsidy policy to other subsidised goods if the implementation on RON95 petrol is successful.

“There are leakages now that cost the federal government.

“We will target the subsidies, taking the experience we gain from implementing this targeted subsidy on RON95 petrol,” he told the Dewan Rakyat during Question Time this morning.

Saifuddin was taking a supplementary question from S. Kesavan (Sg Siput-PH), who asked if the policy would be used on other subsidised goods.

Kesavan earlier asked the minister how the targeted petrol subsidy would be implemented to assist people in the B40 group.

The targeted subsidy for RON95 petrol was announced in Budget 2019 and will be implemented this year.

It was previously reported that owners of cars and motorcycles with 1,500cc and 125cc engines will receive subsidies at 30 sen per litre.

The subsidy for car owners will be limited to 100 litres of petrol monthly, while motorcycle owners will get 40 litres monthly.

The government had allocated some RM2 billion for this new initiative to benefit over four million car owners and 2.6 million motorcycle owners.

Saifuddin said the Finance Ministry had decided on the vendor that would work with the Domestic Trade and Consumers Affairs Ministry to develop the system to implement the targeted subsidy.

He said the government would use the Cost of Living Aid (BSH) data to identify recipients of the targeted petrol subsidy.

The ministry, he added, would also engage with various parties – such as petrol companies, petrol station operators, consumer groups and also economists – to ensure smooth implementation of the programme.

Saifuddin also said there would be no compensation paid to petrol station operators.

To opposition leader Ismail Sabri Yaakob’s (Bera-BN) question on whether the targeted subsidy would be implemented using coupons or petrol cards, the minister said that was being worked out.

“The principle is to avoid chaos on the day of implementation. Will we have two different prices at petrol pumps or just one while we deposit the subsidy into recipients’ accounts?

“Some BSH recipients, like those in the interior (rural areas), have no bank accounts. We have asked banks to assist them to open up accounts. Under this method, the subsidy can go into their accounts and we can have the same price at the pumps.

“Another option is issuing petrol cards. That can help us record transactions and consumer spending. We can study the data for subsidy policies for other consumer goods in the future,” Saifuddin said. – April 10, 2019.