IPOH: The gradual rollout of the government’s fuel subsidy retargeting plan may soon see the top 15% income group (T15) excluded from receiving the Budi Madani RON95 (BUDI95) subsidy.
This is in line with efforts to ensure a smoother transition, says Muhammad Kamil Abdul Munim.
Muhammad Kamil, who is the political secretary to the Finance Minister, said the fuel subsidies must be carried out in phases to ensure a smooth transition and avoid disruption.
He was responding to criticism that the initiative does not increase income or reach the target groups as even high-income earners received the subsidy.
He said the phased approach was in line with what Prime Minister Datuk Seri Anwar Ibrahim had announced months earlier.
“The Prime Minister had made it clear that fuel price reductions would follow the retargeting of subsidies.
“To ensure this is done effectively, implementation must be carried out step by step,” he said on Wednesday (Sept 24).
He told reporters this after opening the Malaysian SDG Community Health Observatory Network programme held at the National Cancer Society Malaysia – Caritas Home of Hope.
Muhammad Kamil said in the first stage, all Malaysian citizens with a valid and active driving licence are eligible to purchase RON95 petrol at RM1.99 per litre.
“Non-citizens are excluded from the scheme, and from there, we monitor the outcome before expanding to more categories in the next phase.
“For example, there is a possibility the higher income group earners will be removed from the list,” he said.
“It is a process, and we want the policy to achieve its intended objectives.
“So don’t rush, and be patient,” he said.
Muhammad Kamil said previously when the Government proposed the move, the opposition objected.
“Now that we have implemented it, they still object,” he added.
