Jakarta, hitclubapk3 Indonesia
—
World Bank
advises the Government
Malaysia
setting fuel prices
BBM
) RON 95 according to market price, aka floating price.
This proposal was conveyed by World Bank Lead Economist for Malaysia Apurva Sanghi on several occasions.In fact, he even created a special thread on the X application regarding his argument.
The World Bank criticized the double price for RON 95 fuel which was deemed ineffective in preventing subsidy leakage.Malaysians are entitled to a cheaper price of 1.99 ringgit per liter or the equivalent of Rp. 8,077 (assuming an exchange rate of Rp. 4,059 per Malaysian ringgit), while foreign citizens (WNA) must pay 2.60 ringgit (Rp. 10,553) per liter.
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“Rich Malaysians are not excluded [from the RON 95 fuel subsidy price] + they have lots of cars + drive more often. So, they [rich Malaysians] are still the ones who benefit the most (in absolute terms),” he explained on the X account @ApurvaSanghi, Wednesday (24/9).
Therefore, Apurva Sanghi rejected such double pricing.He believes that the Malaysian government will not receive more benefits by simply setting high prices for foreigners.
He agrees that there is potential for foreigners to reduce the intensity of private car use.However, local residents who are rich people will tend to drive more often because the price of RON 95 is cheaper, aka it is still subsidized.
“This (the double price of RON 95 fuel) weakens the drive for cleaner private cars and the use of public transportation,” said Sanghi further.
“Why doesn’t (the Malaysian government) adopt the standard fix (subsidy reform)? Float prices plus targeted cash transfers?”his advice to the Malaysian Government.
On the other hand, the representative from the World Bank in Malaysia questioned the basis of the neighboring country’s calculations which claimed to be able to save 2.5 billion ringgit or the equivalent of Rp. 10.14 trillion from the fuel subsidy policy.Sanghi believes that these savings will really depend on foreigners who continue to buy fuel at higher prices.
Sanghi then reminded the incident of the fuel price spike in 2008 which finally made Malaysia improve.He said people would only remember the sudden increase, without paying attention to the condition of global oil prices.
“Dual pricing; cheaper fuel; and subsidies for all [Malaysians] invite leakage, overuse and insignificant fiscal savings,” he said.
“If the current policy is part of a bigger plan, it might be a good idea to let the public know. Plot twists are good in Korean dramas, but not in fuel policies,” added Sanghi.
Separately, Malaysian Prime Minister (PM) Anwar Ibrahim rejected the World Bank’s proposal to set market prices for the sale of RON 95 fuel. He is adamant about the Budi Madani RON95 (Budi95) program.
Anwar claims that the current Malaysian version of the RON 95 subsidy is a wise step that has succeeded in reducing government spending without burdening the public.
“This shows that our approach is wise and we are taking actions that can benefit society. Thank God, the RON 95 subsidy targeted throughout Malaysia has received a very good and positive response,” said Anwar Ibrahim at the Malaysian State Council, Tuesday (2/12), quoted from Malaymail.
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