KUALA LUMPUR – With targeted diesel subsidies to be implemented, the government must be stricter and more efficient in curbing diesel smuggling and misappropriation, a consumer group said.
The Federation of Malaysian Consumers Associations (Fomca) said Putrajaya must increase its capacity and human resources to fight smuggling.
Fomca secretary-general and chief executive officer Saravanan Thambirajah said that while Fomca supports the government’s decision to implement targeted diesel subsidies, the government’s objective will not be met if diesel smuggling and leakages continue.
“There will still be people who take advantage of the subsidy, especially businesses. Diesel is still cheap in Malaysia compared to our neighbouring countries.
“Somehow, smugglers, certain unethical business owners, and even consumers will find loopholes in the system. Enforcement must be enhanced in the form of human resources and skills to prevent leakages,” he told Scoop today.
Last night, Prime Minister Datuk Seri Anwar Ibrahim announced the cabinet’s agreement to implement targeted fuel subsidies, starting with diesel, in the peninsula.
Sabah and Sarawak are exempt because almost every family uses diesel for vehicles, and the government did not want to burden the people, Anwar added.
Anwar did not state when the targeted subsidies would be rolled out, although the Domestic Trade and Costs of Living Ministry has already begun implementing the diesel fleet card system for commercial vehicles eligible for subsidised diesel.
Thambirajah said the government must be firm in enforcing the targeted subsidies to prevent wasting taxpayers’ money.
He also cautioned that any event involving a change in taxes or subsidy would impact businesses.
However, he said the government, particularly the Domestic Trade Ministry, must enhance its enforcement to prevent businesses from taking advantage of the situation and unreasonably raising the prices of goods and services.
“The Domestic Trade Ministry must enhance their enforcement and take action against businesses that are greedy and take advantage of this situation,” he said.
Thambirajah also hopes that the government will pay more attention to those in need, such as by assisting those in the B40 and M40 groups.
“The inflation rate of 1.7% appeared lower than the real inflation (that the people are facing). With the rising cost of living, we are still dependent on imported food, and this could become critical if it is not addressed with policy to improve our food security,” he added. – May 22, 2024