Najib explains why fuel prices remain unchanged
By Mergawai Zulfakar, The Star
“This means the Government will have to consider alternative measures when we decide not to increase the price of fuel,” he added. (the 11.13am online version)
TOKYO: The plight of the rakyat was uppermost in the Government’s mind when it decided not to increase the price of RON 95 petrol, diesel and liquefied petroleum gas.
Prime Minister Datuk Seri Najib Tun Razak said the decision was made despite the heavier financial burden on the Government.
“I hope the rakyat will appreciate the Government’s decision because we are only thinking of their plight although from the macro economic point of view, maintaining such a huge subsidy does not constitute good governance.
“It may be a bit difficult for the people to understand this but for those who know elementary economics, they will understand,” the Prime Minister told reporters here yesterday at the end of his trip to Japan where he delivered an address at the Nikkei International Conference and met Japanese captains of industry.
Asked how long the Government would be able to sustain the subsidy, Najib said: “I don’t know, nobody knows. It will depend on the price of oil on the world market.”
He said the Government would do its best to look at creative ways of managing the increase in subsidy.
Najib said the Government had initially budgeted RM11bil for subsidies this year but with the increase in global oil prices, the amount in direct subsidies had ballooned to RM20bil.
“This means the Government will have to consider alternative measures when we decide not to increase the price of fuel,” he added.
On claims that the Government’s decision pointed towards a general election soon, Najib replied: “People can always connect these two. That is the normal game in Malaysia anyway.
“So it does not surprise me. What is important is that we are always concerned about the plight of the rakyat and that is always uppermost in our mind.”
Najib also said that during his meeting with Japanese businessmen, he told them the Government would continue to maintain its investor-friendly policies.
He also announced that Japanese companies would invest RM3.8bil by the end of next year.
“These are confirmed investments although I cannot reveal the details yet.
“For long-term investments, Japanese companies will invest RM5.22bil between 2013 and 2015 in various projects,” he said.
