Formulation of targeted subsidy mechanism for petrol not easy - PM

As such, Anwar said the government is mulling over several working papers and proposals regarding the mechanism to ensure more effective and timely implementation.

"We are working on it. There is a team working on it now and there are some proposals but we are not very convinced in terms of the effectiveness.

"Unlike electricity subsidy, we know the houses, the factories, so it's ok, but diesel is different," he said after a meet-and-greet programme at the MADANI Hawkers Centre at Jalan Tuanku Abdul Rahman here today.

Anwar stated that the implementation of targeted subsidies aims to ensure that only deserving individuals can benefit from it.

Prior to this, the Prime Minister reportedly said that it was unreasonable for the government to continue giving subsidies, such as in the cost of performing Hajj and electricity for the T20 group.

He said this was because at least 40 per cent of the subsidies provided by the government to the poor were also enjoyed by the aforementioned group.

Last month, Deputy Finance Minister Datuk Ahmad Maslan said that the establishment of mechanisms for targeted subsidies is already 75 per cent complete, and the results of discussions on these mechanisms involving various committees will be presented to the Cabinet before any further decisions are finalised.