9th January 2025 - 2 min read
The government is in the final stages of deliberating on the implementation of a targeted RON95 fuel subsidy, with the Cabinet expected to reach a decision in the coming weeks, according to economy minister Rafizi Ramli.
Rafizi stated that the decision would determine the eligibility criteria and implementation mechanisms, with Putrajaya aiming to ensure that the subsidies are channelled to deserving households.
“We are going through the internal processes to finalise this. In a few weeks, the government will finalise the proposal made by the economy ministry,” he said on the sidelines of the Malaysian Economic Forum.
The economy ministry has proposed moving away from the current B40, M40, and T20 income classifications for subsidies. Instead, it suggests a system based on households’ net disposable income to better target the assistance. Once the Cabinet approves the proposal, the government will begin the process of identifying eligible recipients, Rafizi confirmed.
“As soon as we receive the green light, it will be our duty to communicate the changes,” he added.
During his talk at the forum, Rafizi highlighted that the government plans to utilise the Padu database, which contains information on 21 million Malaysians, to implement the targeted subsidies for RON95 petrol. He described Padu as the government’s most comprehensive database and noted that it had recently reopened for new registrations to ensure broader inclusivity.
The targeted RON95 subsidies form part of the government’s broader strategy to minimise leakage and enhance the efficiency of public spending.
(Source: Free Malaysia Today)
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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