KUALA LUMPUR, June 12 — The National Consumer Action Council (MTPN) has proposed that the government provide continuous cash assistance to low-income groups to ease their burden following the implementation of the targeted diesel subsidy that began on Monday.

In a statement today, MTPN president Datuk Kevy KV Yeo said this measure aims to help mitigate the impact of inflation and ensure that the most affected groups receive immediate assistance.

He suggested that the government replace general diesel subsidies with targeted subsidies for sectors such as public transportation, agriculture and fisheries.

"This ensures that subsidies are enjoyed only by those who genuinely need them. Additionally, the development of public transport infrastructure is necessary to increase investment in more efficient and environmentally friendly public transportation, thereby reducing reliance on private vehicles and diesel.

"MTPN also recommends that the government strengthen price controls of essential goods to prevent excessive price increases due to rising transportation and production costs,” he added.

The government should also promote the use of new energy sources by providing incentives for renewable energy usage in the form of excise tax exemptions, cash rebates or low-cost financing for the installation of new power systems.

"Training and job relocation programmes for workers trapped in diesel-dependent industries should be implemented to help them acquire new skills and job opportunities in other growing sectors.

"Awareness and education campaigns can also be conducted to educate the public about the long-term benefits of reducing diesel subsidies and the importance of transitioning to cleaner and more sustainable power sources,” he said.

Kevy felt that these measures need to be implemented carefully and synergistically to minimise the impact of the targeted diesel subsidy.

"MTPN welcomes the Madani government’s efforts to ensure fuel subsidy allocations are targeted at those in need and its commitment to curb smuggling activities and subsidy leakage.

"Based on several studies conducted by MTPN, the implementation of targeted diesel subsidy can reduce the fiscal burden, provide social justice and help reduce social inequality by ensuring the subsidy benefits the low-income groups who need assistance the most,” he said. — Bernama