Economy Minister Confirms Targeted Subsidy Programme for RON95 Petrol
The Malaysian government plans to introduce a targeted subsidy programme for RON95 petrol, which will not be based solely on household income. This announcement was made by Economy Minister Rafizi Ramli, who clarified that the programme will take into account other factors to determine who will benefit from the subsidy.
Eligibility for Targeted Subsidy
At an event celebrating National Statistics Day in Putrajaya, Rafizi Ramli confirmed that the targeted subsidy programme will not use household income levels as the sole determinant, contrary to the B40, M40, and T20 categories. He emphasized that the programme will consider other variables and will not apply a one-size-fits-all approach.
Economy Ministry to Conduct Simulations and Analyses
The economy ministry will conduct simulations and processes with the finance ministry, the statistics department, and other relevant departments to determine the eligibility criteria for the targeted subsidy programme. This will ensure a fair and effective distribution of the subsidies to benefit the majority of the population.
PM’s Announcement: Targeted Subsidy to Address Inequitable Distribution of Funds
In a recent budget announcement, Prime Minister Anwar Ibrahim revealed that the government spent RM20 billion last year on blanket subsidies for RON95 petrol. He emphasized that a significant portion of this amount, RM8 billion, was enjoyed by foreign nationals and the top 20% group of ultra-rich consumers, who do not require such subsidies.
"These RM8 billion would be better utilised for improving education, healthcare, and public transport facilities," he said.
Government’s Plan for Targeted Subsidy Programme
The government plans to implement the targeted subsidy measure for RON95 petrol by mid-2025, with the intention of bearing the subsidy for 85% of the people, estimated at RM12 billion, according to Prime Minister Anwar Ibrahim.
FAQs
- When will the targeted subsidy programme for RON95 petrol be introduced?
- The programme is planned to be introduced by mid-2025.
- How will the eligibility criteria for the targeted subsidy programme be determined?
- The economy ministry will conduct simulations and processes with the finance ministry, the statistics department, and other relevant departments to determine the eligibility criteria.
- Will household income be the primary determinant of eligibility for the targeted subsidy programme?
- No, the programme will consider other factors and will not use household income as the sole determinant.
- How much money will be allocated for the targeted subsidy programme?
- The government plans to bear the subsidy for 85% of the people, estimated at RM12 billion.