RM2b savings with new fuel subsidy scheme

THE government is expected to save as much as RM2 billion next year under a revamped fuel subsidy scheme.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the government has been spending RM8,000 per capita per year in fuel and other subsidies, which places a huge weight on its operating expenditure.

"We need to recalibrate the distribution of the subsidies while ensuring that there will be no erosion of standards of living for the underprivileged and the poor," he said at the National Economic Outlook Conference 2010-2011 in Kuala Lumpur yesterday.

The revamped fuel subsidy system is targeted for implementation in May next year, with its mechanism expected to be worked out by April.