KUALA LUMPUR: An opposition MP has cautioned the government against making “surprise” announcements on RON95 subsidies, saying such tactics backfired in the past.
Syed Saddiq Syed Abdul Rahman (Muda-Muar) reminded the government that a majority of Malaysians used RON95 petrol. The fuel is retailed at a fixed rate of RM2.05 per litre.
“Don’t surprise the public, or you will be caught by surprise when the rakyat punishes you,” he said, seemingly alluding to economy minister Rafizi Ramli.
Syed Saddiq said this when debating the national budget in the Dewan Rakyat today.
In July, Rafizi defended the government’s strategy of not announcing the implementation of targeted fuel subsidies “too early”, describing it as a measure to ensure that the prices of goods remained under control.
“We did surprise everyone with the targeted diesel subsidies and I think everyone is up for another surprise,” he had said in jest.
Last Friday, when tabling the national budget, Prime Minister Anwar Ibrahim said the government would start implementing targeted subsidies for RON95 petrol in mid-2025.
However, he emphasised that his administration remained committed to providing subsidies for 85% of the population.
On Monday, Rafizi said the government was bracing for a backlash over the implementation of the targeted subsidies.
While the move is poised to save the government RM8 billion annually, Rafizi said it could also trigger second-round price hikes and lead to a surge in inflation.
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