The government is confident that Malaysia will still achieve its official inflation rate and economic growth projections for 2024 even with the implementation of the diesel subsidy retargeting, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
The government is targeting headline inflation of 2.0-3.5 per cent and gross domestic product growth of 4.0-5.0 per cent for this year.
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The government is targeting headline inflation of 2.0-3.5 per cent and gross domestic product growth of 4.0-5.0 per cent for this year.
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NewsTranscript
00:00With the implementation of the re-implementation of the diesel subsidy,
00:04it is suggested that the government will be able to achieve an annual budget of 4 billion ringgit.
00:11This budget can of course be used to improve the quality of life of the people
00:19by providing quality public infrastructure and more comprehensive social protection.
00:27We also need to emphasize that compared to the diesel subsidy cost of 14 billion ringgit in 2023,
00:37an annual budget of 4 billion ringgit means that the government still has a diesel subsidy of 10 billion ringgit.
00:46For example, to cover subsidies in Sabah-Sarawak,
00:50subsidies for public services and the logistics sector in Semenanjung,
00:55real estate assistance for individual owners and small agri-commodity operators,
01:03as well as diesel fuel subsidies.
01:07This means that although the government has taken steps to lower the subsidy
01:14to reduce pollution and pollution,
01:17but those who need it will continue to receive assistance and diesel subsidies.
01:27The approach of the re-implementation of the diesel subsidy,
01:31namely providing diesel subsidies to the logistics sector and monthly cash assistance to individuals,
01:38will reduce the pressure on consumer goods and impact on the people.
01:45Therefore, although there is a significant change in the price of diesel,
01:52it is expected that it will not affect the performance of the economy or the inflation rate.
01:59The government is confident that with the implementation of the re-implementation of the diesel subsidy,
02:05the country's economy will still reach the official government level
02:11with an inflation rate of 2% to 3.5%
02:18and a GDP growth rate of 4% to 5% by 2024.
02:27However, the decision to implement the re-implementation of the diesel subsidy
02:34is not an easy step to take.
02:38The government is not in a hurry,
02:40but always pays special attention to ensure that the best mechanism is used
02:47to protect the business sector and the people who deserve to be helped.
02:52This decision also involves full cooperation from all parties,
02:58including the Ministry of Government, the Ministry of Finance,
03:02the Ministry of Trade and Life Efficiency,
03:05the Ministry of Agriculture and Commodity,
03:07the Ministry of Agriculture and Food Assurance,
03:11the Ministry of Transport, and the Oil and Gas Industry.
03:17In concluding this statement session,
03:21I sincerely hope that all respected experts can support the Government's efforts
03:28to ensure that the implementation of the re-implementation of the subsidy is successful.
03:33People's savings cannot be compromised.
03:38Rapid changes now cannot be avoided.
03:42Hopefully, we can work together to improve the fiscal situation
03:48and advance the national economy
03:51so that people's lives can be improved.
03:57That is all.
03:58May peace be upon you.