Targeted Oil Subsidy to Replace Blanket Scheme

Malaysia’s Public Accounts Committee (PAC) has urged the government to scrap the current blanket cooking‑oil subsidy and switch to a tightly targeted programme. PAC member Mas Ermieyati warned that the existing mechanism is leaking funds and failing to reach the low‑income families it was meant to help. She called for a clear recommendation on how to redesign the subsidy so that assistance is channelled only to those who truly need it, trimming waste and improving fiscal efficiency. The push comes amid rising living costs and growing public scrutiny of welfare spending.

If re‑engineered, the subsidy could lower oil prices for the most vulnerable households, easing everyday cost‑of‑living pressures.

A targeted subsidy could free up government funds for other pressing needs while delivering real relief to low‑income families. It also signals a shift towards data‑driven welfare policies, aiming to curb corruption and improve public trust in fiscal management.