KOTA BHARU, July 16 — Implementing the Variation of Price (VOP) following the targeted diesel subsidy is expected to be settled in a month, said Deputy Public Works Minister Datuk Seri Ahmad Maslan.
The Public Works Ministry (KKR) had met with Finance Minister II Datuk Seri Amir Hamzah Azizan, the Treasury secretary, and the National Budget Office's director to discuss the VOP's implementation.
“During the meeting, the Construction Industry Development Board team and KKR requested that considerations on VOP be given to contracts implemented before the announcement of the targeted diesel subsidy.
“The Finance Ministry has also agreed and will hold a discussion soon involving the percentage of VOP that will be given to contracts involved in projects before the targeted diesel subsidy,” he told the press after officiating the 47th Annual General Meeting of the Kelantan state Malaysian Malay Contractors Association today.
Ahmad added that the diesel subsidy provided by the government to the people was previously about RM14 billion.
"Now, we are only retracting RM4 billion in subsidies that are supposed to be given to the public… we still give RM10 billion.
“Therefore, we will work on implementing this VOP. If subsidies are given to heavy machinery linked to the construction sector, savings will not reach RM4 billion,” he said.
The minister said that not all construction materials were impacted by the recent targeted diesel subsidy, as some materials could be brought in using vehicles that qualified for the fleet card.
“There are some construction materials that can be brought in using vehicles using the fleet card; not all construction materials are impacted by the recent subsidy,” Ahmad said.
The government agreed in principle on Saturday (July 13) to implement the VOP to assist contractors faced with rising costs of construction materials to ensure projects can be completed on time.
— Bernama
