World · Malaysia Bureau
Gauge actual demand before lifting fuel subsidy entitlement, economist urges
An economist has advised the government to assess current usage patterns under the existing fuel subsidy scheme before considering any increases to the allocation. Tan Peck Leong argues that wider uptake of the current 300-litre entitlement would provide Putrajaya with vital data on true demand levels.
LSN Malaysia ·
Economist Tan Peck Leong has called on the government to evaluate consumption patterns within the existing fuel subsidy framework before expanding the scheme's quota. He suggests that maximising participation in the current 300-litre allocation would furnish policymakers with a more accurate assessment of genuine demand among eligible beneficiaries.
The economist's recommendation comes amid ongoing discussions about the sustainability and scope of Malaysia's fuel subsidy programme. By first understanding the extent to which the current entitlement is being utilised, Tan argues that the government would be better positioned to make informed decisions about any future adjustments to the scheme.
His position reflects concerns about budgetary allocation and the efficiency of subsidy distribution. Without clear data on how extensively the existing quota is being claimed across the eligible population, determining the appropriate level for any quota increase remains problematic.
The call for a more data-driven approach underscores the importance of gathering concrete usage metrics before committing to policy changes that could have significant fiscal implications for the federal government.