KUALA LUMPUR: The exemption of the RON95 subsidy for the T15 income group will only be implemented once the current system is more robust, said Prime Minister Anwar Ibrahim.
“If we look at T15, if we initially set the threshold at RM13,000 per month and later at RM20,000 per month, it still places pressure on the upper-middle class.
“We therefore propose raising the threshold to around RM50,000 per month, but the number of people affected under that threshold is very small.
“From an enforcement standpoint, the cost of implementing this measure is substantial.
“So for now, our view is that we implement this first, and if there is a need in the future, when the system is more robust, then we can introduce it.
“But this would be for those who are truly high-income or genuinely wealthy,” he said in reply to a supplementary question from Syerleena Abdul Rashid (PH-Bukit Bendera).
She had inquired why Budi95 benefits all Malaysian citizens, including the T15 group, despite the announcement that the RON95 subsidy will be targeted at 85 per cent of the population.
Anwar said the targeted petrol subsidy initiative, Budi95, was expected to help the government save RM2.5 billion.
He said under several rationalisation programmes, the government achieved significant savings.
These included the floating of chicken and egg prices, which saved RM1 billion each; the restructuring of electricity tariffs, which saved RM6 billion; and RM5 billion through the Budi Madani Diesel Programme, largely due to smuggling and leakages under the old system.
“In my opinion, these savings were sufficient for the government to implement the measures carefully, so as not to burden the people,” he said.
Meanwhile, Anwar said the impact of the 19 per cent tariff imposed by the United States still needs to be studied.
“We have been monitoring the effects and closely watching the implications.
“Naturally, the government should review certain policies to ensure they do not burden the people,” he added.
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