ECONOMY Minister Rafizi Ramli has defended the government’s decision to delay announcing the implementation of targeted fuel subsidies. He described the strategy as essential for maintaining control over the price of goods.
Rafizi explained that premature announcements could lead traders to raise prices preemptively, using the impending policy changes as a justification for hikes.
“We need to consider the impact if announcements are made early, because price increases are determined by traders.
“That is why the government decided it would be better to only announce its decision once everything is finalised (at the government level) first, as this would reduce the risk of continuous and repeated price hikes.
“Hence, it is better for the decision to remain known only to the government until everything is finalised,” he told the Dewan Rakyat.
To mitigate such risks, the government has chosen to finalise all details internally before making any public announcements.
During an interview with Bloomberg at the World Economic Forum in China last month, the minister was asked about the potential implementation of targeted RON95 subsidies this year.
“We will keep our cards close to our chest in the same way we surprised everyone with diesel,” he said, hinted at a surprise approach similar to the one used for targeted diesel subsidies.
However, Prime Minister Datuk Seri Anwar Ibrahim later downplayed Rafizi’s comments, stating that no final decision had been made on the matter.
In today’s Dewan Rakyat session, Beluran MP Ronald Kiandee questioned whether this “surprise” strategy would help alleviate the people’s burdens and what impact such announcements would have on the economy and the public. – July 11, 2024
Main photo credit: Business Today
