YESTERDAY, MCA president Wee Ka Siong said the government should consider the eligibility for the targeted RON95 fuel subsidy based on the type and value of cars driven instead of the income earned.
According to him, drivers of Perodua Myvi, Ativa, or Alza cars, for example, should be entitled to receive a full government subsidy for the RON95 petrol.
“However, those who drive Mercedes, BMW, Ferrari or Lamborghini do not need the subsidy at all,” he said in a video on TikTok.
Wee added that the government should not punish those who practise moderation in their daily lives and are not reckless with their spending.
Professor Tan Sri Dr. Noor Azlan Ghazali, director of the Malaysian Inclusive Development and Advancement Institute (Minda-UKM), also suggested a similar method.
Dr Noor Azlan suggested a concept similar to vehicle classification for highway tolls, where petrol subsidies would be based on engine capacity.
And he added that those who fall under the M40 income group but prefer to drive luxury cars should also not be given any fuel subsidy.
“In general, low-income individuals tend to use motorcycles as daily transport, while wealthier individuals are more likely to drive vehicles with larger engine capacities,” he said.
“If a wealthy person drives a Perodua Kancil, they would still qualify for subsidies because they use less fuel.”
In line with the recent budget announcements, specific details regarding the RON95 subsidy adjustments remain limited.
However, Prime Minister Anwar Ibrahim noted that 85% of Malaysians would be unaffected by the upcoming subsidy rationalisation measures.
The government plans to continue subsidies for RON95 petrol, which are projected to amount to RM12 billion.
Despite this significant allocation, the rationalisation is expected to save around RM8 billion, funds which will be redirected to support Malaysians and drive national development.
Anwar further highlighted that the government had allocated RM20 billion for RON95 subsidies in 2023, underscoring the substantial investment to keep fuel costs manageable for citizens.
Last week, Economy Minister Rafizi Ramli said the targeted subsidy programme for RON95 petrol will not be solely based on household income.
He said the targeted subsidy programme will take other factors into consideration. However, he did not elaborate on what are these other factors. – Oct 27, 2024
Main image: weekasiong (facebook)
