MIER SUPPORTS GOVT POLICY TO REDUCE OR WITHDRAW DIESEL SUBSIDY

KUALA LUMPUR, June 12 (Bernama) The Malaysian Institute of Economic Research (MIER) supports the government’s policy of reducing or withdrawing the diesel subsidy, as this policy can significantly reduce the price differential of the product within and between border areas.

In a statement today MIER said illegal activities such as smuggling could be effectively brought under control through the policy.

“The policy will also reduce the cost of enforcement along the border areas.

Further, the policy to reduce or do away with the subsidy will create industries and businesses based on the true production costs and not based on subsidised prices, which have been the case for many years,” it added.