Huazong calls on govt to address, improve diesel subsidy rationalisation policy

MIRI (July 7): The Federation of Chinese Associations Malaysia (HuaZong) called on the government to address and improve its subsidy rationalisation policy in view of the recent diesel price increase, which triggered a new wave of price hikes not only in the Peninsula but also East Malaysia.

Huazong president Tan Sri Goh Tian Chuan said under the subsidy rationalisation, the price of diesel increased from RM2.15 to RM3.35 per litre — a 55.8 per cent increase.

“Those who think the diesel price increase only affects the Peninsula and that East Malaysia still enjoys subsidised diesel price should hold that thought, because they need to understand many of the food, goods and raw materials used in EM comes from Peninsula and due to geographical and transportation costs, prices in EM are generally higher.

“Therefore, we have to understand that if prices in Peninsula rises due to diesel fluctuation or other factors, EM will not be exempted and will face the same increase,” he said in his remarks at the 39th National Chinese Cultural Festival banquet dinner here on Saturday.

Goh added that while the federal government has implemented targetted strategies such as diesel subsidies for commercial vehicles and specific transportation tools, it needed improvement.

“In principle, we support the government’s subsidy rationalisation policy because it is meant to reduce or curb diesel smuggling and misuse of diesel subsidy.

“However, the targeted subsidies in various areas have not effectively curbed the rise in commodity and service prices and their cascading effects,” he said.

He also called on the government to continue strengthening efforts against the abuse of diesel, including ensuring that subsidised petrol (RON95), which is not subject to fluctuating prices, is not misused or smuggled.

“Before diesel prices fluctuation measures, it was reported daily diesel smuggling or misuse had led to government losses of RM4.5 million daily and accumulated to RM2 billion annually. This significant loss reflects the lawlessness of offenders and enforcement lapses by authorities, leading to a considerable loss for the nation.

“Deputy Finance Minister II Datuk Seri Amir Hamzah Azizan recently disclosed early indications showed targeted diesel subsidy measures effectively reduced abuse (of diesel) with daily diesel sales at petrol stations in the Peninsula dropping by 30 per cent and even more so for diesel smuggling which was reduced by 40 to 50 per cent.

“This is a positive sign but a 50 per cent reduction in diesel smuggling is still insufficient — the government should enforce stricter measures to show its commitment and determination in implementing this policy effectively,” he said.

The dinner was attended by Miri Mayor Adam Yii as guest of honour and was also a celebration of FCA Miri’s successful organising of a torch relay ceremony held earlier at the Miri City Hall.

The event saw 1,500 representatives from Chinese associations under Huazong Miri’s wings.

Miri was the second leg of the torch relay, which started from Limbang since June 22. The next leg will be in Bintulu.

The torch relay is expected to arrive in Kuching on Sept 13 as the festival concludes with a grand cultural performance at Kuching Waterfront on Sept 15.