By DayakDaily Team
KUCHING, May 11: The federal government is in the midst of fine-tuning its targeted RON95 petrol subsidy mechanism, acknowledging that one of the hardest decisions ahead is deciding which groups should no longer receive fuel assistance.
Economy Minister Akmal Nasrullah Mohd Nasir said the main challenge lies in setting a fair eligibility threshold without causing undue impact on groups who are still in need of support.
“That is among the challenges we face — to ensure that in our effort to channel subsidies to target groups, we do not create a significant shock to those who may still require assistance or are not yet fully prepared to transition away from such support,” he was quoted as saying by news portal MalayMail after an event in Putrajaya today.
He added that discussions are ongoing on how to clearly define the dividing line between those who should continue receiving subsidies and those who may be phased out of the system.
The matter, he said, has been brought to the National Economic Action Council (MTEN), following recent remarks by Prime Minister Datuk Seri Anwar Ibrahim that the government is reviewing the RON95 subsidy rationalisation plan.
Akmal said the government is now studying implementation details, including income thresholds and other eligibility criteria, as it moves towards a more targeted approach.
“There is pressure to ensure subsidies are no longer given on a blanket basis, but instead aligned with actual needs and usage,” he said.
He noted that even within the middle-income group, some households may still require assistance, making the calibration of the system more complex.
On implementation timing, Akmal said the rollout could begin at the start of a month once systems are ready, though he did not specify when.
“Such changes also involve systems. It depends on readiness to ensure screening can be carried out effectively,” he said.
He added that the government will rely on multiple data sources, including income data and existing information from the Economy Ministry, to determine eligibility.
However, he stressed that full details will only be announced once a final decision is made, as the policy will also include an appeals mechanism for affected individuals.
“Having a clearer dividing line will also make it easier for targeted groups to accept the policy,” he said.
The review comes after Anwar said yesterday that the government is looking at refining RON95 subsidies, including the possibility of excluding or partially assisting higher-income earners, as part of efforts to better channel support to lower- and middle-income groups.
Fuel subsidies in April were estimated at RM7 billion, about double the March figure, driven by global oil price movements amid ongoing geopolitical tensions. — DayakDaily
