KUALA LUMPUR: The government will implement a new fuel subsidy scheme in May 2010 and it expects savings of up to RM2 billion.
Second Finance Minister, Datuk Seri Ahmad Husni Hanadzlah said on Tuesday, Dec 1 the new system, which will include the usage of myKad for purchase of fuel,should be finalised by April and implemented by next May.
He said the government spends RM8000 per capita annually on numerous subsidies.
"Not only this places a huge weight on our operating expenditure but it also creates distortions in our marketplace. We need to realign this," he said at the MIER national economic outlook conference.
Husni also said the government was confident of achieving 5% GDP growth next year given the few projects in the pipeline for the first quarter.