PRIME Minister Anwar Ibrahim today said the government intends to activate a targeted petrol subsidy mechanism as soon as possible, but the formulation of such a mechanism, including for diesel and RON95, is quite complex.

Anwar said the government is mulling several working papers and proposals on the mechanism to ensure more effective and timely execution.

“There is a team working on it now and there are some proposals, but we are not very convinced in terms of the effectiveness,” he said after a meet-and-greet at the Madani Hawker Centre on Jalan Tuanku Abdul Rahman in Kuala Lumpur today.

Anwar said targeted subsidies will ensure only the deserving benefit from them.

Earlier, the prime minister said it is unreasonable for the government to continue subsidising electricity for the T20 group and haj costs.

He said this is because at least 40% of the subsidies provided by the government to the poor are also enjoyed by high-income groups.

Last month, Deputy Finance Minister Ahmad Maslan said the formulation for targeted subsidy mechanisms is 75% complete, and results of discussions on these mechanisms will be presented to the cabinet. – Bernama, June 15, 2023.