Nik Nazmi said prior to targeted subsidies being implemented the public would rely on petrol or diesel because it was cheap.
Such reliance on fossil fuels is something the government wants to reduce with the help of renewable energy options that “are more attractive”, he said in an interview with FMT.
“By purely not subsidising fossil fuels any more, we can see the transition happening. I think that’s the easiest thing.”
According to a recent global study, renewable energy now costs less than fossil fuels in the Asia Pacific region, solar energy is the least expensive source of power in the region, while fossil fuels will continue to become more expensive.
Nik Nazmi also hopes that last year’s removal of subsidies for RON97 and diesel would encourage the more affluent Malaysians to purchase electric vehicles (EV) to manage the higher fuel prices.
Getting Malaysians to opt for renewable energy and switch to EVs, will help with the country’s decarbonisation journey, a topic dear to him, he said.
Nik Nazmi currently chairs the national decarbonisation committee which aims to expedite the establishment and adoption of decarbonisation initiatives.
He admitted that the targeted subsidy initiative was not an easy decision to make in view of the political repercussions, and with targeted subsidies for RON95, used by a majority of Malaysians, to be enforced later this year, “it is a whole different ballgame”.
Having been part of the opposition before this, Nik Nazmi is well aware that this topic is a sensitive issue.
Citing an excerpt from his book, “Saving the Planet: Climate and Environmental Lessons from Malaysia and Beyond”, Nik Nazmi highlighted the backlash faced by London mayor Sadiq Khan when he expanded the ultra-low emission zone policy in the British capital.
It subsequently led to a narrow by-election victory for the Conservative party which turned it “into a referendum of Khan’s ULEZ policy”. Under the policy the oldest, most polluting cars are charged a daily surcharge to enter the zone.
Nik Nazmi wrote that Khan was not reportedly welcomed by his own Labour Party to campaign in the by-election. The party had also pinned the defeat entirely on ULEZ.
Nik Nazmi said that, similarly, Malaysia’s targeted subsidy initiative had to be handled very well to avoid creating a political backlash which would turn into a major problem.
“I might lose my job, and, I mean, the government might just lose power, and then the next government might say it’s not worth doing it,” he said.
However, despite the risk involved, Nik Nazmi feels that it is something that needs to be done. “It’s good for the country’s treasury. It’s good for the environment and I think it’s the right transition that we want to pursue.”