00:00 The government's decision to remove the diesel subsidy for private vehicles but maintain
00:06 it for commercial use has generally gone down well, but concerns remain among experts and
00:11 stakeholders.
00:13 The plan is to divert the savings from the diesel subsidy rationalization to meet other
00:18 needs such as cash handouts to the most needy to help them defray increases in costs.
00:23 Ye Kim Lang, a senior fellow at the Jeffrey Sachs Center on Sustainable Development at
00:28 Sunway University, said that maintaining the subsidy for commercial vehicles will prevent
00:32 a sharp increase in the prices of goods and services, ensuring that there is no knock-on
00:37 effect on inflation.
00:39 Ye said the removal of subsidies for fuels will also pave the way for the adoption of
00:44 electric vehicles to meet the country's goal of achieving net zero carbon emission by 2050.
00:50 However, Saravanan Tambirajah, CEO at the Federation of Malaysian Consumers Associations,
00:57 warns that the move may still lead to indirect price increases.
01:01 He said employees who drive diesel-driven vehicles may demand higher wages to compensate
01:05 for the rise in fuel costs.
01:08 Meanwhile, economist Barjoya Ibardai of Unitar University pointed out that the impact of
01:13 the subsidy rationalization for diesel will be minimal for private vehicle owners given
01:18 the low amount of fuel they consume individually.
01:21 (upbeat music)
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