The government is expected to announce a new mechanism for fuel subsidy early next year while ensuring that it would not require a huge allocation for the purpose.

Deputy Finance Minister Datuk Amiruddin Hamzah said the government would also ensure that the implementation of the targeted fuel subsidy system would be smooth.

“We are working hard towards it and we hope that we can make the announcement early next year. The sooner we get it finalized, the sooner we can get it launched”

he told reporters after officiating ‘The Digital Economy: Unlocking its Full Potential to Drive Malaysia’s Development’ forum organized by the ministry and the World Bank Group’s Global Knowledge and Research here, today.

Earlier, responding to a question from Senator Ng Chiang Chin at the Dewan Negara, Amiruddin said the government had spent RM1.667 billion to subsidize the RON95 and diesel fuel from May to July.

He said at the moment, the government still maintained the retail prices of RON95 petrol and diesel at RM2.20 and RM2.18 per liter, respectively, despite the higher market prices.