Govt confident of achieving 2024 inflation, GDP targets even with diesel subsidy retargeting

KUALA LUMPUR: 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.

"The diesel subsidy retargeting approach taken is by providing subsidised diesel to the logistics sector and monthly cash assistance to individuals to reduce the pressure on consumer goods prices and impact on the people," he said in his speech to explain about targeted diesel subsidy implementation in the Dewan Rakyat today.

Therefore, he said, the government still bears up to RM10 billion for diesel subsidies despite saving RM4 billion a year as a result of the retargeting exercise.

This amount includes subsidies in Sabah and Sarawak (RM3 billion), subsidies for the public transportation and logistics sectors in Peninsular Malaysia (RM4 billion), cash assistance for individual diesel vehicle owners and agri-commodity smallholders (RM2 billion) and subsidies for fishermen (RM1 billion).