KPDNKK denies that only sub-RM5,000 monthly income earners will qualify for subsidised fuel

2013_Toyota_Vios_fuel_test-003

According to a Bernama report, the Domestic Trade, Cooperatives and Consumerism ministry (KPDNKK) has dismissed reports of an allegedly-planned new system under which only motorists with monthly incomes of RM5,000 and below, using cars with engines displacing under 2.0 litres, will qualify to buy fuel at fully-subsidised rates.

“The newspaper reports are just speculations as the government had not yet issued in detail the implementation of the move,” KPDNKK secretary-general Datuk Seri Alias Ahmad told reporters yesterday.

He said that there was a new approach to fuel subsidies, but studies were still being undertaken and the government would announce this in due course.

Alias recently revealed that a new system ensuring the sale of subsidised fuel only to eligible motorists is set to begin in September for commercial vehicles, and October or November for private vehicles. About 3,500 petrol stations nationwide would be involved, and the government targets savings of RM9.8 billion through this new system, “assured to be more efficient and effective,” he said.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Stealth on Jun 03, 2014 at 11:36 pm

    U can’t trust what the government says nowadays especially we have a track record of leaders doing flip flop

    Well-loved. Like or Dislike: Thumb up 78 Thumb down 7
    • Pengguna Bijak on Jun 04, 2014 at 8:29 am

      New Fuel Subsidy system = Abolish 75% Car Tax

      Something new must replace and compensate something old.

      Ini baru adil. Minyak mahal, cukai kereta zero. OK SETUJU???

      Well-loved. Like or Dislike: Thumb up 95 Thumb down 1
      • oil country on Jun 04, 2014 at 12:36 pm

        Lets vote.

        Like for proposal:
        Oil price up, car price down.

        Dislike for continue like now. Wait Janji ditepati for car price.

        Like or Dislike: Thumb up 34 Thumb down 2
      • Chris (Member) on Jun 04, 2014 at 1:15 pm

        Not very fair as not everyone will buy new car. Those who’s driving old car will just see a jump in petrol bills.

        Almost 25 billion ringgit a year, and maybe 7 million household in Malaysia. You could give free electricity for first 300kW usage, which according to their statement during the last tariff change, 70% of Malaysian household would pay nothing for electricity, and they will still have more than 17 billion ringgit left!

        Well price of goods will go up.. but hey, free electric! (Plug in hybrid yay) And no more smuggling problem.

        Like or Dislike: Thumb up 2 Thumb down 3
        • 4G63T DSM on Jun 04, 2014 at 4:39 pm

          At least with cheaper cars, we have a better option to change to more efficient rides.

          But the government is only interested to get more $$$, in what ever means necessary because it is bankrupt. So no, they wont drop the taxes because it is good income for them.

          Like or Dislike: Thumb up 9 Thumb down 2
          • Chris (Member) on Jun 04, 2014 at 5:32 pm

            Wrong. You’re only thinking about yourself because you wanted a new/better car.

            It would benefit too because I’m all for cheap cars, but if I have to choose, I’d choose a solution that everyone in this country can enjoy.

            Not everyone is looking for a new car. Not everyone needs a car. But everyone uses electric at home, if you have a home.

            This just shows how selfish we all are.

            Like or Dislike: Thumb up 5 Thumb down 3
        • paparadzi on Jun 04, 2014 at 10:47 pm

          Not exactly. Everybody will have to buy a new car someday. Cars don’t last forever.

          Like or Dislike: Thumb up 5 Thumb down 1
          • Chris (Member) on Jun 05, 2014 at 11:18 am

            So the lower/working class who will use the his honda cub for 20 years because they can’t afford a car will have to suffer higher petrol price and get nothing in return?

            Call me self-righteous if you want but it’s no worse than being selfish and ignorant. It’s possible having both subsidize on something else AND no excise duty, but if we can only have one, I pick one that benefits everyone in the country, not just the middle class.

            Like or Dislike: Thumb up 3 Thumb down 0
    • Typical bumi government. Flip flop. Sin Chew cannot be wrong. Government announced this, got lots of backlash and negative repercussions from the public, then, as usual, chicken out. now, they say they never said such thing. Deny.

      Like or Dislike: Thumb up 29 Thumb down 18
    • bisakeris (Member) on Jun 05, 2014 at 7:20 am

      1st thing is cannot trust sin chew.. 2nd is sin chew must close shop! ok?

      Like or Dislike: Thumb up 4 Thumb down 2
  • Maseratits on Jun 03, 2014 at 11:45 pm

    Well, that’s a relief.

    Like or Dislike: Thumb up 8 Thumb down 10
    • Didn’t you read the government want to save 9.8 billion ringgit is subsidies so everything will go up as transport is concern food and non food will go up by 10% at least and later GST too. So thank u for supporting 1 Malaysia the rakyat kena Kau kau

      Like or Dislike: Thumb up 55 Thumb down 8
      • Painter on Jun 04, 2014 at 6:51 am

        whatever it is, non-Malaysian don’t deserve our subsidized petrol and diesel. there must some form of control over the smuggling activities.

        As of now, the smugglers just go to the pump stations and load up their tanks. Then, they load the fuel into boats and ships to transfer out of country.

        now, only if the smuggling activity can be stopped at the pump level, that would save us a lot more. I think that is what KPDNKK is working on.

        Like or Dislike: Thumb up 21 Thumb down 1
        • What about foreigners who work and pay income tax in Malaysia? Don’t they deserve fuel subsidy? I agree with you on foreigners who don’t contribute to the country’s coffers.

          What about Malaysians who work and pay income tax outside of Malaysia? Surely they are not deserving of fuel subsidy.

          Subsidy should not be by income level. This is discrimination and don’t give the lame reason of the rich to pay for the poor. The lower income are generally tax free and the responsibility of the country is shouldered by the 1+ million middle class and rich working crowd.

          It’s either to have subsidy for all or none for all. Introduce gst, abolish the excise duty and lower the tax % + broaden the tax bracket. You may agree or disagree but this is surely the way to move forward not flip flopping with some half baked nonsense.

          Like or Dislike: Thumb up 19 Thumb down 4
        • Gomenmalas on Jun 04, 2014 at 3:48 pm

          KPDNKK kerja kah? if they buat kerja.. then we don’t see this high amount of our subsidized fuel goes to foreign hand..

          they only work when want to show wayang.. after 1-2 week.. back to lepak mode… loitering around alamanda again.

          Like or Dislike: Thumb up 5 Thumb down 2
    • Low Budget on Jun 04, 2014 at 6:20 pm

      Relief for how long?
      Either they choose Boleh Land to go bust in matter of time if nothing is done or screw the people, you think which they will choose?

      Like or Dislike: Thumb up 0 Thumb down 0
  • wiralution on Jun 03, 2014 at 11:57 pm

    I don’t give a damn regarding the fuel subsidy cut and GST implementation anymore, as long the gov can abolish the f*cking expensive excise duty, abolish AP permit and revise current income tax rate. I reckon that the people can compromise in such a way that both parties (G and rakyat) in win-win situation. Let’s work towards it!

    Like or Dislike: Thumb up 37 Thumb down 1
    • unfortunately, kiasu people wants everything but gives back very little.

      Like or Dislike: Thumb up 18 Thumb down 5
  • Ai Yo Yo! Not again …

    Like or Dislike: Thumb up 8 Thumb down 2
  • good news on Jun 04, 2014 at 12:11 am

    good news… hopefully they are denying it rather then delaying it.

    Like or Dislike: Thumb up 5 Thumb down 1
    • _xXx_ on Jun 04, 2014 at 8:41 am

      what news is this? they have talked about this since 2010…all kind of funny ideas they proposed. Remove the subsidy and liberalise the market…

      Like or Dislike: Thumb up 4 Thumb down 2
    • Low Budget on Jun 04, 2014 at 6:24 pm

      If not cutting fuel subsidies, they will ‘invent’ something else to squeeze money out of your pocket, you still pay.

      Like or Dislike: Thumb up 1 Thumb down 1
  • old-man on Jun 04, 2014 at 12:21 am

    “government targets savings of RM9.8 billion through this new system”

    how to save RM9.8 BIL? Must CUT somewhere… how can they come to this magic number? i believe the earlier story is somewhat true! instead of 5k, they’ll raise to 7k or 8k…

    2 liter engine will still be the point where they’ll vary the subsidy.

    Like or Dislike: Thumb up 7 Thumb down 2
    • ThePolygon on Jun 04, 2014 at 9:01 am

      I wonder which diesel is less than 2.0 litre… motorbot kot.

      Like or Dislike: Thumb up 6 Thumb down 1
  • Not so fast bro.. Worse yet to come

    Like or Dislike: Thumb up 8 Thumb down 2
  • Not so fast bro.. Worse yet to come

    Like or Dislike: Thumb up 2 Thumb down 2
  • Still in study phase but already mentioned roll out date..

    Put the study results first, gather public opinion and then rolled out the system.

    Hopefully it is not half cook study and another half cook implementation.

    Like or Dislike: Thumb up 7 Thumb down 0
  • GDrogon on Jun 04, 2014 at 12:43 am

    what next?

    Like or Dislike: Thumb up 5 Thumb down 0
  • Danny93 on Jun 04, 2014 at 1:14 am

    Well, most diesel users drive pickup trucks and 4x4s, many of which have displacements above 2.0 liters (ranging from 2.5 litres to 3.0 litres, even older ones are 2.8 liters). So limiting it to vehicles with an engine smaller than 2.0 litres is quite impractical. Maybe they could revise this particular criteria.

    Like or Dislike: Thumb up 4 Thumb down 3
    • ThePolygon on Jun 04, 2014 at 9:09 am

      As for diesel, those 2.0 ones belongs Audis, Porsche Macan, BMWs which is rather much more expensive than the 2.5-3.0 pick ups and twin cabs. So the engine size here doesn’t really show much. Just scrap the engine capacity criteria on the subsidy.

      Like or Dislike: Thumb up 6 Thumb down 1
  • Anti-Fuel-Price on Jun 04, 2014 at 2:11 am

    These days earn RM5000 doesn’t consider rich as house prices sky rocket high, plus everything “essential” household gone up year by year & if Government really put those law, it will create more haters to G. Maybe RM10K above sound more reasonable. Maybe some will think “who” ask u spend on luxury items, but that not the case, even budget budget RM5K is just sustainable. Don’t forget we need to save too!!

    Like or Dislike: Thumb up 33 Thumb down 4
  • Denaihati on Jun 04, 2014 at 3:00 am

    very good news at this moment. hope KPDNKK will reveal as soon as possible.

    Like or Dislike: Thumb up 2 Thumb down 14
  • nangoi on Jun 04, 2014 at 6:09 am

    this isn’t the first time M’sia government shows their stupidity

    Like or Dislike: Thumb up 31 Thumb down 5
    • coolmacha on Jun 04, 2014 at 10:38 am

      Well if our govt implements, its stupidity, if singapore implements, its a smart move for your eyes.

      Like or Dislike: Thumb up 6 Thumb down 8
  • Excellent

    Like or Dislike: Thumb up 1 Thumb down 1
  • Motorhead (Member) on Jun 04, 2014 at 7:44 am

    After implementation of GST… current NAP that ve no significant changes. .

    I think it’s better if the gov just SHUT UP..

    Don’t make things worse… enough dy.

    Like or Dislike: Thumb up 9 Thumb down 3
  • Joe Radzif on Jun 04, 2014 at 8:22 am

    Then…
    everyone will know how much u earn every month…

    Like or Dislike: Thumb up 2 Thumb down 0
  • Typical bashers. always overreacting on everything premature.

    Like or Dislike: Thumb up 8 Thumb down 17
  • marioka on Jun 04, 2014 at 8:29 am

    Please umno bn rakyat government increase all the prises of all the thing sold in malaysia , l love so let all the stupid and the clever people rich or pooor will suffer. Umno bn kerajaan prihatin yg di undi olih rakyat kah kah kah

    Like or Dislike: Thumb up 7 Thumb down 3
    • coolmacha on Jun 04, 2014 at 10:39 am

      Do you think if all items are sold at a very very cheap price, you will be happy? i bet you will not. Because if you are a businessman, i dont think you will sell your goods for charity or below cost.

      Like or Dislike: Thumb up 1 Thumb down 6
  • There’re a lot of flaws in the proposed system.

    How to identify and ensure one’s income is below RM5K?

    And, now, we have more and more ‘expensive cars with smaller engines i.e with turbocharged and supercharged engines.
    They’re below 2,000 cc – but yet not for the ‘poor’ ones.

    Like or Dislike: Thumb up 8 Thumb down 2
    • Xeoni on Jun 05, 2014 at 9:01 pm

      Not to mention that those who owned a business but doesn’t declare their income or declare their profits as lost every year…

      Like or Dislike: Thumb up 0 Thumb down 1
  • brian on Jun 04, 2014 at 8:39 am

    hope government will not abolish petrol subsidize before come out with d scheme.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Retired person on Jun 04, 2014 at 9:10 am

    I hope there is transparency in discussions and procedures to implement where government has to brand a new image to large population.
    The more subsidy giving away means lesser fund for other areas in a balance payment situation.
    We need to realize one fact that our allocations of funds do not have much left for nation development bearing in mind that we have huge civil servants, and this is partially eating away big chunk of fund beside corruptions/over-pricing in purchases.

    Like or Dislike: Thumb up 2 Thumb down 0
  • flip flop flip flop.

    IMHO
    1) Abolish all fuel subsidise
    – save billions of dollars
    – promote fuel efficient car models
    – Discourage wastage / leakage
    2) Abolish all tax and duty of new cars
    – cheaper car price
    – more expensive fuel price will deter excessive increment in car sales
    3) Road tax based on Fuel Efficiency rather than CC.
    – Encourage fuel efficient car models (usually with high tech engine).
    – Encourage environmental friendly consciousness.

    Like or Dislike: Thumb up 18 Thumb down 2
    • Half Blind on Jun 04, 2014 at 1:18 pm

      1. Agreed
      2. Agreed
      3. Proton not agreed. Campro engine sure fail such tax system and nobody buy it later. Hahaha.

      Like or Dislike: Thumb up 7 Thumb down 1
  • cendol (Member) on Jun 04, 2014 at 9:24 am

    Drive BMW 316 or Mercedes CLA class can qualify for subsidised petrol because cc less than 2000. Thank you Jib Kor

    Like or Dislike: Thumb up 10 Thumb down 1
  • Battu on Jun 04, 2014 at 9:25 am

    i think Paultan also at fault on this matter, releasing article based on nothing but speculation. you guys should know the best that average IQ of paultan reader cannot handle rumors of that magnitude. you should put it clearly that is merely a speculation and a part of the discussion on the gov. side, and not just put a single paragraph stating ‘However, all this has yet to be finalised, and KPDNKK is still exploring recommendations from relevant industries, the report states.’ None of Paultan reader will bother to read that, they read halfway and immediately go monkey nuts.
    Put journalism ethic on top 1st, dont just rushing just to get maximum views ratings only. (I refer to your article http://paultan.org/2014/06/03/new-system-rm5000-full-fuel-subsidies/)

    Like or Dislike: Thumb up 18 Thumb down 4
  • wolverin on Jun 04, 2014 at 9:25 am

    This morning having breakfast heard a higher income uncle scolding when read this news. “He say everymth he paid so much income tax, now have to pay high price for the petrol.”

    Like or Dislike: Thumb up 6 Thumb down 0
  • Josh Ling on Jun 04, 2014 at 9:34 am

    i just want the government to ensure unlimited supply of RON 97 fuel to every petrol station in Malaysia, especially Sabah and Sarawak first, before implementing any subsidy restrict measure. With most of the petrol stations in Sabah and Sarawak only provide RON 95 fuel (mainly Petronas stations), how the heck the people are going to fuel up when they have reached their quotas, or they are not eligible for pumping RON95 fuel, and they happen to reach an area where only RON 95 fuel is available? it’s ridiculous to think that we Sarawak as the main exporter of high quality fuel, and we are only getting the supply of RON 95 fuel in most of our petrol stations!

    Like or Dislike: Thumb up 6 Thumb down 0
  • Heskey on Jun 04, 2014 at 9:53 am

    Good move towards high income nation

    Like or Dislike: Thumb up 0 Thumb down 1
  • JaRoD on Jun 04, 2014 at 10:28 am

    Prius before Import and Export Duti Free Rm175,000.
    Prius After Fully Free Tax & Duti (Rm140,000) about Rm35,000 difference.

    Gov subside Rm1 per litre x 300 litre month x 12 months = Rm3600 of Subsidi per person per year that fully use The quota.

    10 years fully use of subsidi only Rm36,000.

    My dearly Gov. Better cheaper car no petrol subsidi la…

    At least I don’t have to borrow the Rm35,000 difference from bank and kena pay bank interest. This will “cut down household debt” Another big issue of Malaysia.

    No need expensive system to manage.

    No need worry so much for fuel smuggling.

    Free Market la…

    By the way I heard Prius can actually be cheaper after free tax. It’s just that too cheap will affect Altis and Vios sales. That’s y it is Rm135,000. Yah I even forgotten about to mention the AP cost.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Cut the petrol subsidize to all YB first la

    Like or Dislike: Thumb up 5 Thumb down 0
  • jimmy on Jun 04, 2014 at 10:57 am

    just sale the fuel with market price and rebete to correct person otherwise there still loop hole in this issue, let the whole price to go up then people will relise how “good ” is our G to help people

    Like or Dislike: Thumb up 1 Thumb down 0
  • carbonman on Jun 04, 2014 at 12:07 pm

    Govt target to save rm9.8 billion in subsidy.

    But they would have spent rm39 billion in the process of saving that 9 billion.
    >_<

    Like or Dislike: Thumb up 5 Thumb down 1
  • niterunner99 on Jun 04, 2014 at 12:51 pm

    So now need to show pay slip to proof mthly income less than 5k before can pump?

    Like or Dislike: Thumb up 1 Thumb down 1
  • bisakeris (Member) on Jun 04, 2014 at 1:23 pm

    >aiyooooooo sin chew daily make stories ka ini.. cannot trust sin chew daily lorr..

    Like or Dislike: Thumb up 3 Thumb down 0
  • pondan on Jun 04, 2014 at 8:35 pm

    Gov has digged a deep shit hole in the last 5 years and spent it lavishly in everything including pru13 free money to ppl to vote for BEND.

    Now, all the excess debt is thrown back to rakyat to foot the bill. If you call this prudent gov… god knows what is call good gov.

    We have been warned by PR on those lavish spending but in the end… they are still ppl who are either too innocence or stupid to keep voting for them.

    Like or Dislike: Thumb up 4 Thumb down 1
  • damn you sin chew!!!

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required