Price hikes by Singapore tour agencies show diesel subsidy rationalisation needs to continue: Malaysia PM Anwar

Source: CNA

BUKIT MERTAJAM: The increase in fares by Singapore travel agencies and tour buses, along with the busting of diesel-smuggling syndicates at the border, proves that the diesel subsidy rationalisation initiative should be continued, said Malaysian Prime Minister Anwar Ibrahim.

He added that the targeted diesel subsidies are critical to saving the country financially by stemming fund leakages caused by unscrupulous parties.

"All tour buses and travel companies from Singapore want to raise prices because they say they can't get diesel subsidies, which means for decades, our subsidies went to Singapore companies, to Thai fishing boats. A lot of funds were leaking.

"Subsidies were benefiting 3.8 million foreigners, (diesel) taken out to Thailand and sent to Thai fishing boats ... Malaysian taxpayers are paying, but foreigners are reaping the benefits," he said at an event in Malaysia's Penang state on Tuesday (Jun 18)

Mr Anwar, who is also the country's finance minister, noted that the number of cars produced from 2012 to 2020 was small compared to the skyrocketing increase in diesel consumption because the fuel was enjoyed by foreigners.

Malaysia on Jun 10 cut most of its diesel subsidies, which the authorities said was costing the country RM4 billion (US$853) million annually. Mr Anwar had previously said the savings will then be redirected to lower-income groups.