SECOND Finance Minister Tan Sri Nor Mohamed Yakcop said subsidies would not be abolished, but it was more important for the Government to practise efficient economic policies that would help Malaysia become a fully developed country.

Nor Mohamed said the Government had received many questions and criticisms on the rationale behind the move to restructure the fuel subsidies.

“The Government decided to raise the fuel prices, but reduce the people’s burden through the subsidies.

“Assistance will also be given to eligible Malaysians through the social safety net programmes,” he said during the winding-up speech on behalf of his ministry.

Nor Mohamed said among the social safety net programmes were for public transportation companies to buy diesel at RM1.43 sen per litre instead of RM2.58.

This would help reduce the burden on the public transportation sector, he added.

Nor Mohamed said the National Economic Action Council (MTEN) and the Cabinet committee on inflation were adequate forums to seek views and measures to counter economic issues.

There was no need to form new committees to discuss the issue of the rise in oil prices, he added.

Among the suggestions that had been discussed was that currencies other than the US dollar be used in trading to reduce over-reliance on the greenback.

“We have asked for trading currencies be changed from the dollar to the euro or the yen, but even the Japanese exporting communities preferred the US dollar.

“Hence, oil trading has always been dictated in US dollars or more widely known as petrodollars,” he added.