I welcome the Ministry of Finance’s latest disclosure on the current monthly fuel subsidy burden and the market price of diesel. This is a step in the right direction towards greater transparency and helps Malaysians better understand the true scale of the issue.
The numbers, however, are deeply concerning. Fuel subsidies are now estimated at RM72 billion annually. To put this into perspective, Malaysia’s entire education budget stands at approximately RM66.2 billion, and this is the largest allocation among all ministries. Yet, we are still spending about RM6 billion more on fuel subsidies than on educating our future generations.
This is based on current oil prices. If Brent crude rises to USD120 or even USD150, the subsidy bill will increase significantly. Every USD10 increase in global oil prices translates into billions of ringgit in additional government expenditure. This trajectory is clearly not sustainable in the long term.
The Government must now answer a fundamental question. How will this massive subsidy bill be financed? Will we allow the fiscal deficit to widen further? Malaysians deserve clarity and honesty on this.
The Minister’s own statement confirms that market diesel prices are between RM7 and RM8 per litre, compared to the pump price of RM6.72. This means the Government is already subsidising diesel by up to RM1.30 per litre, even under the current “float” system. The subsidy burden remains substantial and ongoing.
These facts completely expose the shallow and irresponsible rhetoric coming from MCA and Akmal Saleh. For weeks, they have been demanding lower fuel prices and attacking the Government, pretending subsidies are costless. It is easy to demand more subsidies. It is much harder to explain how to pay for them.
If MCA and Akmal Saleh insist on further expanding subsidies or reducing petrol and diesel prices, they must come clean with the rakyat. Where will the money come from? Will they raise taxes? Increase borrowing? Or sacrifice critical spending such as education and healthcare?
If they cannot answer this, their position is not only untenable, it is economically reckless.
This is not a theoretical debate. It is about the country’s fiscal stability, the strength of the ringgit, and the long term wellbeing of Malaysians. We cannot afford to pretend otherwise.