Malaysian Official Suggests Innovative LPG Subsidy Reform

Malaysian Official Proposes LPG Subsidy Reform: Capped Payments or Electricity Bill Rebates? KEDAH, MALAYSIA – Datuk Mohd Zayad Md Ismail, the head of the Kedah branch of the Malaysian Malay Chamber of Commerce (DPMM), has called on the government to consider reforming its LPG subsidy system. Currently, the subsidy is distributed broadly, leading to inefficiencies. Datuk Ismail proposes two solutions: a capped subsidy amount or a rebate system integrated with electricity bills. "We could limit the subsidy to a fixed amount, say RM20," Datuk Ismail said in an interview with Astro AWANI. "This would help control government expenditure." Alternatively, he suggested a rebate system. "Many countries use electricity bill rebates to distribute subsidies," he explained. "This ensures everyone gets a share, and we know who is actually using the LPG." The DPMM Kedah head believes these targeted approaches offer a more efficient and equitable distribution of LPG subsidies compared to the current method. He highlighted the potential for significant cost savings and improved targeting of those most in need. This proposal has sparked debate, with discussions ongoing about the feasibility and potential impact of these reforms on Malaysian consumers and the national budget.