LABUAN: The subsidy for diesel and petrol RON95 might be rationalized again in January and June next year, said Deputy Finance Minister Datuk Ahmad Maslan.
He advised the people to be prepared for next year’s rationalization, as the recent one left many people surprised and shocked.
“We will be restructuring ways on how to channel the fuel subsidy to the people in a fair distribution. The rich and higher income group might not get the subsidy, while the lower income group may get full subsidy and the middle income group may get a portion of the subsidy,”he said at a talk on the Goods and Services Tax (GST) at the Labuan International School (LIS) hall yesterday.
Ahmad explained the move by the government to rationalize the fuel subsidy recently was meant to improve the management of the subsidy and finance for the country’s development.
He disclosed that by reducing 20 sen of the fuel subsidy, the government could save around RM24 billion per year or RM2 billion per month.
“With RM2 billion, the government can build 2,000 kilometres of road in the villages and with the same amount of funds, the government can build four universities in this country. Those are just illustrations of what the government can do for this country’s development by reducing the fuel subsidy,”he said.
Ahmad also said the well-to-do or higher income group are actually benefiting more on the fuel subsidy provided by the government as they would be having more vehicles with high engine capacity compared to the lower income group. The subsidy should be used to help the latter group.
He added the government was aiming to channel the saved subsidy for the lower income group by giving assistance such as BR1M.
Currently, the price of RON95 is RM2.30 per litre and diesel is RM2.20 per litre after the last review early this month.
Commenting on the Budget 2015, Ahmad said the Prime Minister called it the People’s Budget after considering five points for the people. They are the cost of living, employment, housing for the people, education and skills, and welfare.
“We still have six years left to become a developed country with high income people. We have identified three methods to empower the people to become a high income nation, namely, high education, high skills and entrepreneurship,”he said, adding that the Malays and Bumiputeras must learn from the Chinese in doing business.
On the Budget 2015, where Labuan did not get any special allocation like what Langkawi had previously, the deputy minister said he hoped the leaders here in Labuan would come out with the proposals for Labuan to be submitted to the Ministry of Finance (MOF) and Economic Planning Unit (EPU) before June next year to be reviewed and studied for inclusion in the 11th Malaysia Plan.
“The 11th Malaysia Plan will be tabled in June next year before the Budget 2016 is tabled in October,”he said, adding that the working papers must be submitted as soon as possible in order to get the allocation.
When asked if Labuan could have its own full-fledged university to help the oil and gas industry to grow further, he said that any project or proposal would be considered and reviewed and opined that Labuan could start by setting up a private university or college first.
Meanwhile, Labuan member of parliament Datuk Rozman Isli disclosed that they are now working on the whole blueprint for this island development to be submitted to the MOF and EPU.