KUALA LUMPUR: The Budi Madani diesel subsidy system was developed by civil servants and did not involve additional costs, says Deputy Finance Minister Lim Hui Ying (pic).
Lim said no external consultants were engaged to develop the system, so the issue of whether or not it went through an open tender process does not arise.
The system was developed internally, she said during Question Time in the Dewan Rakyat on Monday (July 15).
Datuk Suhaimi Nasir (BN-Libaran) had asked about the cost of developing the system.
Elaborating, Lim said the system used available government data to ensure that no eligible Malaysian is left out of diesel subsidies.
“The government will monitor the rationalisation of diesel subsidies from time to time and if improvements are needed, it will be to ensure that the needy receive government help in facing the rise in the cost of living,” she added.
In a supplementary question, Suhaimi asked if the RM200 monthly Budi Madani assistance was enough.
Lim said the amount was determined after a thorough study to be sufficient for most households in Malaysia.
“Based on the latest Household Income & Expenditure Survey, the RM200 is enough to cover additional monthly diesel costs for 80% of households in Peninsular Malaysia,” she said.
As of June 8, over 30,000 applicants have been approved to receive aid under the Budi Madani system.
Aside from Budi Madani, subsidised diesel is provided via fleet cards at RM2.15 per litre to eligible logistics vehicles to mitigate any effects on the price of consumer goods.
As of June 10, diesel prices were floated and retailed at RM3.35 per litre in the peninsula.
Subsidies continue for traders using diesel-powered commercial vehicles and for public transportation.
Ten types of public transport vehicles, including buses and taxis, as well as 23 goods transport vehicles, come under the Subsidised Diesel Control System (SKDS).
