MCA has criticised the Government’s BUDI95 fuel subsidy programme, arguing that while it may reduce subsidy expenditure, the resulting increase in fuel-related costs is placing a heavier financial burden on lower-income households.
MCA vice president Datuk Ir Lawrence Low said higher fuel prices do not stop at the petrol station but flow through the wider economy by increasing transportation, logistics and operating costs, which ultimately affect the prices of goods and services.
“The Government may save on subsidies, but if Malaysians end up paying more for everyday goods and services because transportation and business costs increase, ordinary households are not necessarily better off,” he said in a statement today.
Low, who is also the party’s Economic and SMEs Affairs Committee chairman further questioned the Government’s monthly 200-litre RON95 allocation under the BUDI95 programme, saying the limit may be insufficient for many working Malaysians who rely on their vehicles to earn a living.
He said petrol was a necessity rather than a luxury for employees, small business owners, sales personnel, delivery riders and others whose daily work depends on private transport.
“It is unrealistic to expect Malaysians to simply switch to motorcycles to cope with higher fuel costs,” he elaborated.
“A motorcycle cannot replace a family car used for commuting, sending children to school, caring for elderly family members or managing other daily responsibilities.”
Low went on to note that the results of the recent Johor and Negeri Sembilan state elections should serve as a reminder that voters remain concerned about the rising cost of living and policies that directly affect household expenses.
He also urged Deputy Finance Minister Lim Hui Ying to disclose who advised the government on changes to the existing RON95 fuel subsidy policy.
Low questioned whether the proposal originated from a consultancy firm, an external institution or a government-appointed committee, and called on the Government to release the data, economic projections and impact assessments used to support the policy.
“A policy affecting the daily expenses of millions of Malaysians should not be formulated behind closed doors. Malaysians deserve transparency on the rationale, evidence and decision-making process behind such a significant policy change,” he stressed.
Low said fiscal discipline should not come at the expense of lower-income households.
“A truly people-centred policy should reduce the cost-of-living burden rather than shift the government’s savings onto household budgets,” he added.
“A healthier fiscal position means little if ordinary Malaysians are left with less money in their pockets at the end of each month.” ‒ Aug 6, 2026
Main image: Bernama
