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Malaysia’s Prime Minister Anwar Ibrahim said overhauling diesel subsidies was necessary to prevent the financial drain from misuse. Photo: Hadi Azmi

Singapore tour agencies milked Malaysia’s diesel subsidies for decades, Anwar says

  • Some 3.8 million foreigners had been ‘reaping the benefits’ of taxpayer-funded subsidies, according to Malaysia’s prime minister
Malaysia
Singapore tour agencies’ recent fare increases expose their long-standing reliance on Malaysian diesel subsidies, according to Malaysia’s prime minister.
“Tour buses and travel companies from Singapore raised prices because they said they could not get diesel subsidies,” Anwar Ibrahim said at an event on Monday.

“This meant that they had been benefiting from our diesel subsidies for decades. Not only them, there were foreign fishermen and others at the country’s borders making use of our subsidies.”

Overhauling diesel subsidies was necessary to prevent financial drain from misuse, Anwar told the event at a mosque in Bukit Mertajam.

“Plenty of funds were leaking over the years,” he said, adding that the subsidies had benefited 3.8 million foreigners.

A petrol station in Kuala Lumpur. Malaysia’s prime minister said “foreign fishermen and others at the country’s borders” had benefited from diesel subsidies. Photo: AP
“It [diesel] was taken out to Thailand and used by Thai fishing boats … this is Malaysian taxpayers’ money but foreigners were reaping the benefits,” he said.

“The number of cars produced from 2012 to 2020 was small compared to the skyrocketing increase in diesel consumption because the fuel was enjoyed by foreigners.”

There were bound to be teething problems in any subsidy rationalisation process when first rolled out, Anwar said.

“If there are weaknesses, inform us and we will correct them. Those who have concerns or issues with it, let us know so that we can improve,” he said.

“When we start something, there will be flaws. Tell us so we can correct it rather than saying cruel things [about it].”

Anwar, who is also Malaysia’s finance minister, acknowledged that the move had affected the public, but assured that his government would do its best to ensure deserving citizens continue to receive subsidies.

These subsidies are for the poor, the deserving. Those who deserve to get subsidies can apply for them
Malaysian Prime Minister Anwar Ibrahim

He accused detractors of attacking the government over subsidy rationalisation instead of offering constructive criticism.

“These subsidies are for the poor, the deserving. Those who deserve to get subsidies can apply for them,” Anwar said.

“Those who use diesel, like fishermen, farmers, public transport operators, all of them can apply for subsidies.”

27:37

Anwar Ibrahim on navigating Malaysia through China-US tensions | Talking Post with Yonden Lhatoo

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Anwar told reporters after the event that the move to cut subsidies had affected companies bordering Malaysia, which had illegally benefited over the years.

“It will save us funds that have been misused by others,” he said.

“The savings from the diesel subsidy rationalisation would be returned to the people.”

This article was first published by The Star
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