KUALA LUMPUR: The Finance Ministry is conducting a comprehensive study on the implementation mechanism of targeted subsidies.
In a written response to a parliamentary inquiry, the ministry said this study is being carried out in collaboration with the Domestic Trade and Cost of Living Ministry and the Economy Ministry.
"It is necessary to identify the best approach to mitigate the impact on the cost of living and ensure that the people can adapt to the introduced mechanism," the ministry said in response to Wong Kah Woh (PH-Taiping).
Wong had inquired about how targeted subsidies could be implemented to alleviate the financial burden on the people.
The ministry further explained that the determination of the mechanism and the eligibility criteria for the target group for subsidies will be based on socio-economic data from households.
Meanwhile, in line with the 2024 Budget announcement, the ministry said the implementation of targeted diesel subsidies will only be carried out in the Peninsula.
"The price of diesel in Sabah and Sarawak will remain at RM2.15 per litre. Fishermen will continue to receive diesel subsidies at a much lower price of RM1.65 per litre.
"Public transportation, including school buses and vans, will maintain a price of RM1.88 per litre.
"The targeted diesel subsidies programme will be implemented through the expansion of the subsidised diesel control system (SKDS) using fleet cards managed by the Domestic Trade and Cost of Living Ministry. All goods vehicles must be registered under this system to ensure they continue to benefit from the diesel subsidy at the price of RM2.15 per litre."
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As for the imbalance cost pass-through (ICPT) subsidy mechanism, the ministry said it will be implemented based on usage, with a portion of ICPT costs being passed on to users with high electricity consumption.