No fuel subsidies for the rich: Govt agrees, but still looking into it

 

The government has agreed in principle to remove fuel subsidies for wealthier Malaysians, but the move is still subject to an ongoing study to identify the specific income groups that will be affected.

Prime Minister Anwar Ibrahim said the study is necessary to ensure the policy does not unintentionally place a burden on the upper-middle-income group.

He added that the matter is currently being examined by the crisis management task force under the National Economic Action Council, which is led by corporate figure Hassan Marican.

“The proposal was tabled about a month ago by the task force headed by Hassan. They went through it, and there was this discussion as to whether it should involve the T5, or T10, or T15, or T20.

“In principle, we agree… but we don’t want it to impact the upper-middle class. So, they are working on it, we will finalise it soon, I hope,” Anwar was quoted as saying.

Yesterday, Umno Youth chief Dr Akmal Saleh said the wing intends to table a motion at the next Umno supreme council meeting, proposing that fuel subsidies be withdrawn for those in the T20 income bracket.

Umno Youth chief Dr Akmal Saleh

He argued that a more targeted subsidy system would enable Putrajaya to redirect the savings towards assistance for lower-income groups who need it more.

“So it would be better if we take the T20’s subsidies and channel them back to the B40 and M40. If one spends between RM200 and RM400 a month on the 400 litres of subsidised petrol, that’s nothing for the rich.

“But this RM200 to RM400 means a lot for the B40 and M40. That’s why among our proposals is to ask for fuel subsidies to be rationalised further and targeted to those who really need them,” Akmal said.

However, the proposal was met with opposition from Pakatan Harapan Youth, whose chief Woo Kah Leong said that hostility towards certain groups does not solve any problems.

“Every segment of society, especially those who are more financially capable, has never objected to paying taxes for the nation’s development all these years.

“Subsidies do need to be reduced gradually over time, but not through an approach that vilifies certain groups,” Woo said. - Mkini