Fuel subsidy plan to include M40 group – gov’t aiming for simultaneous implementation with B40 next year

Fuel subsidy plan to include M40 group – gov’t aiming for simultaneous implementation with B40 next year

The ministry of domestic trade and consumer affairs (KPDNHEP) is hoping to implement the petrol subsidy programme (PSP) for recipients of the Bantuan Sara Hidup (BSH) – or B40 – as well as those in the middle income M40 category simultaneously from January next year.

At last week’s Budget 2020 tabling, it was revealed that there would be another category for the PSP, with a “Kad95” being issued to those whose household income are below RM4,000, but are not eligible for BSH for various reasons (thus categorised as M40). At the time, finance minister Lim Guan Eng said the Kad95 system would be implemented progressively in the first quarter of 2020.

“Following the announcement of the PSP on Monday, the ministry received a lot of feedback from the people, and among the most popular feedback was the call to include those in the M40 group as eligible to receive petrol subsidies,“ said domestic trade and consumer affairs minister Datuk Seri Saifuddin Nasution Ismail in a report by The Sun Daily.

According to Saifudin, KPDNHEP will hold discussions with the ministry of finance (MOF), Road Transport Department (JPJ) and Tenaga Nasional to obtain data on eligible recipients and to refine the required mechanisms.

Fuel subsidy plan to include M40 group – gov’t aiming for simultaneous implementation with B40 next year

“From the Budget 2020 presentation, the government has allocated RM2.2 billion for the targeted PSP scheme which will benefit about eight million motorists and by excluding 2.9 million recipients from the B40 group, about five million eligible drivers will be identified including those from the M40 group,” he said.

For everyone else not covered by the PSP, there will be no subsidies, and they will be subject to fuel prices that will be floated next year. Based on the finance ministry’s latest Automatic Price Mechanism (APM) calculations (for the period of October 12-18), RON 95 petrol would be priced at RM2.37 per litre without the current RM2.08 price cap in place. As a recap, here are the main points of the PSP:

  • The subsidy will only be given to car/motorcycle owners, and is limited to one vehicle per recipient. If a person owns a car and a motorbike, then he/she will receive the higher subsidy, which is for the car. The car or motorcycle must be registered under the recipient’s name.
  • The subsidy rate will be capped at RM30 a month for car owners, and RM12 a month for motorcycle owners.
  • The government will reimburse the subsidy once every four months, so car owners will receive RM120 and motorcycle owners will receive RM48 every four months. The payment method will see cash being directly credited into the recipient’s registered bank account. The first payment is scheduled for April 2020.
  • The household income of the recipient must not be more than RM4,000 per month.
  • To qualify, a recipient can only own a maximum of two cars and two motorcycles at any one time in his/her household. See the info-graphic panel above for a clearer picture of what vehicle combination qualifies and what doesn’t.
  • For cars, the pre-requisite is that the engine displacement must be:
    1,600 cc or below
    – or above 1,600 cc, but only for cars that are 10 years old and above
  • For motorcycles, the pre-requisite is that the engine displacement must be:
    150 cc and below
    – or above 150 cc, but only for motorcycles that are seven years old and above

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Abang2 Sambung Bayar on Oct 14, 2019 at 10:49 am

    In Malaysia, for 60 years majority always want bantuan kerajaan. So, we have become a pampered lot. It is time we abolish all these nonsense and learn to stand on our own two feet without tongkat.

    Learn to live within your means and you will be able to afford Malaysia really well. The problem with people asking for bantuan all the time…..we have become lazy and not competitive.

    Like or Dislike: Thumb up 11 Thumb down 18
    • Turn M on Oct 14, 2019 at 12:01 pm

      Agreed! Those M40s who had been complaining not getting any bantuan should not get any bantuan for being ungrateful and only know how to complain.

      Like or Dislike: Thumb up 9 Thumb down 1
    • nangku kelong on Oct 14, 2019 at 12:51 pm

      since no more fuel subsidi…. the dignities shud be granted tiap2 bln Rm5k elaun/person ..its fair.

      Like or Dislike: Thumb up 4 Thumb down 0
    • Ouch Dee on Oct 14, 2019 at 1:25 pm

      Can’t agree more.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Veyron Owner on Oct 14, 2019 at 10:58 am

    No problem. I get my company to lower my official salary to ngam-ngam RM4,000 and park the rest under allowances. Then I park my various cars under my children’s’ names. As a safety measure, I have rigged my electric meter to show between RM100-200 monthly. Anything else, mr minister? I am ready for my subsidies.

    Like or Dislike: Thumb up 17 Thumb down 6
    • Melayu ma on Oct 14, 2019 at 2:54 pm

      All the hassles for 30 ringgit a month?

      Like or Dislike: Thumb up 9 Thumb down 2
      • You’d realise all that hassle isn’t done by the person, right? Bosses have PAs to do those legwork for them. That’s how the Malaysian rich gets rich.

        Like or Dislike: Thumb up 1 Thumb down 0
  • Too many kids on Oct 14, 2019 at 6:27 pm

    Should revise M40 to M50.

    Like or Dislike: Thumb up 1 Thumb down 0
  • vVivi Zurianti on Oct 14, 2019 at 7:51 pm

    Certain malaysian are pamper lot and spoilt even. Everything must be subsidized. Always need the “tongkat”. Now asking for “wheelchair”.

    Next time, please ask the Govt to give subsidy for toilet paper, ok?

    Like or Dislike: Thumb up 1 Thumb down 1
 

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