Government Reviewing New RON95 Subsidy Plan for High-Income Groups
The Malaysian government is currently finalising a new proposal under the BUDI95 programme, focusing on reducing RON95 fuel subsidies for higher-income groups.
Prime Minister Anwar Ibrahim said the proposal is being reviewed by the Crisis Management Task Force under the National Economic Action Council (NEAC). He explained that the government agrees in principle with targeted subsidies, but wants to ensure the upper-middle-income group will not be heavily affected.
Discussions are ongoing on whether the subsidy rationalisation should involve the T5, T10, T15, or T20 income groups before a final decision is made.
The move comes as the government faces rising fuel subsidy costs following the increase in global oil prices due to tensions in the Middle East. The finance ministry previously estimated that petrol and diesel subsidy spending could reach up to RM4 billion per month.
Earlier plans had suggested targeting the T15 group, but the BUDI95 programme later introduced a quota-based subsidy system for eligible MyKad holders instead.
Indonesia