The Madani government’s decision to maintain RON95 petrol subsidies for all Malaysians has been described as a formula that not only eases household burdens but could also bolster the administration’s chances in the next general election.
Pasir Gudang MP Hassan Abdul Karim said the policy strikes a rare balance by pleasing the poor and middle class while not drawing anger from the wealthy.
“The poor (B40) and the middle class (M40) are pleased, while the wealthy (T20) are not upset.
"Such a policy is popular among the people regardless of class or race. There is nothing wrong with the government implementing a popular policy. After all, state and general elections are not far off," he noted.
The PKR lawmaker added that policies of this nature ensure that the cost of living does not become oppressive, inflation remains manageable, and wages have the potential to rise in tandem with productivity.
“If there are more economic formulas like this, then the Madani government stands a good chance of being re-elected in the 16th general election,” Hassan said in a statement today.
The subsidy move, he said, not only helps citizens stretch their disposable income but also enables the government to save billions of ringgit annually, creating a win-win situation for both the administration and the people.
"The government can save between RM2.5 billion and RM4 billion annually. This is a smart economic formula. The government saves; the people save too; and disposable household income increases, even if only slightly," Hassan added.
Not ‘chump change’
Finance Minister II Amir Hamzah Azizan yesterday defended Putrajaya’s decision to provide RON95 subsidies for all Malaysians, regardless of income, despite a cut to projected savings.
The minister emphasised that the estimated RM2.5 billion to RM4 billion in savings under the Budi Madani RON95 scheme (Budi95) plan should not be dismissed as “chump change”.
He added that the potential savings under the upcoming subsidy plan, while lower than earlier projected values, are better than the government not gaining at all.
Prime Minister Anwar Ibrahim, in unveiling the new subsidy scheme on Sept 22, justified the shift as a recognition of the contributions of all Malaysians.
The prime minister previously said that the “mahakaya” (rich elites) would not be entitled to fuel subsidies.
Budi95 enables all Malaysians with a valid driving licence to buy RON95 at RM1.99 per litre, with a monthly limit of 300 litres. Anwar said e-hailing drivers will be exempted from the cap.
Foreigners driving locally registered vehicles will pay the market price, estimated to be around RM2.60 per litre.
Foreign-registered vehicles will still be limited to RON97. - Mkini
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