Malaysian Minister: Fuel Price Rise Reduces Funds for Public Transport

Text of report in English by Malaysian official news agency Bernama website

[Unattributed report from the "General" page: "Oil Price Increase Reduces Fund To Improve Public Transport, Says Najib"]

Kuala Lumpur, Nov 26 (Bernama) – Datuk Seri Najib Tun Razak said the increase in oil prices has reduced the Public Transportation Trust Fund set up last year with an allocation of RM4.4 billion, as the government now has to pay more for fuel subsidy.

However, the deputy prime minister said the government would continue to implement affordable projects through the fund.

“We don’t have much now, we have less than that. But we’ll implement whatever project we can,” he told reporters after launching Scomi’s new monorail, ‘Sutra’, here today.

Najib was asked about the RM4.4 billion fund, the saving the government derived from its reduction of fuel subsidy last year, which was to be used to improve public transportation system.

Among others, the government had planned to improve the integration of public transportation – bus, light rail transit, monorail and Keretapi Tanah Melayu commuter services.

On the government’s plan to give fuel subsidy to deserving groups only, Najib, who chairs cabinet committee on fuel, said he and Prime Minister Datuk Seri Abdullah Ahmad Badawi had talked about it.

“The government is still assessing the situation. We have agreed on the principles. We need to find the right kind of formula,” he said.

During last UMNO general assembly, Abdullah, in his winding-up speech, said the government was looking at the subsidy structure and mulling the idea of giving it only to those who deserve it.

Originally published by Bernama website, Kuala Lumpur, in English 0006 26 Nov 07.

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