He said the targeted diesel subsidy recently announced would exempt low-income groups such as fishermen, smallholders and taxi drivers.

“I do not wish to introduce new taxation instruments that burden the people. The issue with diesel subsidy is the significant leakage, costing billions of ringgit; the wealthy and large industries still benefit from these subsidies.

“The implementation of targeted subsidies will affect only the wealthy, large industries and foreign nationals. Fishermen, smallholders, Grab and taxi drivers will all be exempt (from being taxed) … potentially exempting nearly a million citizens from the diesel tax,” he said.

The prime minister’s remarks were made when opening the unity government convention here today.

He also touched on the Islamic economic conference on May 28-29 in Kuala Lumpur, which will “examine the Islamic economy from the wider aspect of shariah, meaning how public participation, social inequality improvement, use of opportunities and digital AI technology exploration are involved”.

He said the conference will bring about “a new thinking” through discussions on societal issues encompassing all fields.

Melaka chief minister Ab Rauf Yusoh said 10 resolutions were discussed during the two-day convention that began yesterday.