The rise in crude oil prices is making Malaysia’s current blanket fuel subsidy – which caps RON 95 petrol at RM2.05 per litre – unsustainable. Although we’re an oil producing country and there’s increased income when global oil prices go up, such is the size of the subsidy bill that every US$1 increase in crude prices chips away RM410 million from the nation’s coffers.
A more targeted approach to fuel subsidy would continue to cushion the impact for those who need the help, while reducing the subsidy bill. It’s no secret that the government is looking to replace the current blanket style – ‘targeted’ has been mentioned before, and is now being reiterated by minister in the PM’s department (economy) Datuk Seri Mustapa Mohamed.
The veteran minister known as Tok Pa said the government is still working on a suitable structure and expects it to be completed soon. For now, subsidised RON95 and diesel prices will remain, but he made it clear that the system will be changed – it’s a matter of time.
“Those who can afford should pay more and the people who do not deserve (the subsidy) should not be given the subsidy at all. Subsidies are meant for the poor people, particularly the B40 (bottom 40% income group). The issue is the timing of when it is going to be implemented,” Mustapa said on Bernama TV today.
He said that fuel subsidies has played an important role in moderating inflation in Malaysia, and the government has been able to maintain price increases of between 2% and 3% for the last 10 to 20 years. “However, it will be a big strain on the budget. When we outlined our budget last year, the estimate was about RM5 billion in subsidies. Now the estimate is somewhere around RM30 billion, representing a sixfold increase in the amount of subsidies,” he said.
So, if blanket is to make way for targeted, what would be a good way to implement fuel subsidies that will benefit the intended recipients, with minimal leakage? More on the topic of high crude oil prices and fuel subsidies here.
Then its simple, if i dont get subsidy I will be selling service/goods at higher price. End of the day B40 still suffer.
Mr.smartie…sometimes we get tired of B40,B40,B40.
As if the other groups dont exist.
Fuel subsidy is like narcotine in cigaretes.How many smokers manage to quit?
Once the nicotine sets in,it is hard to remove the effects.
Just maintain current prices until businesses have fully recovered.Many shops..u go shopping centres..are packing up.Breaking even is considered a bonus.
That is a good move, at least it will deter Sinkies from trying to steal our petrol now. Let them pay for the targeted subsidies to come.
Just bring-in more affordable EV cars from China; speed-up electrification network; DO NOT increase TNB rate; gradually increase fuel price and taxation on new-ICE; consumer behavior will change without your “smart B40” interference
Do you know how many fire and other safety issues reported so far related to china EV?Do you know how much it will cost to replace the EV battery and other electronic parts?Pls read more about EV, understand the differences between EV & ICE in terms of safety and maintenance costs before commenting.Let’s see whether you’ll still buy those cheap EV after knowing all these.
Bashers – “boo, rakyat no money to pay unsubsidised fuel”
Also Bashers – “Gomen no money to continue subsidies”
A bunch of whining, projecting idiots.
Petrol/diesel is essential in logistics. Targeted subsidy would raise living cost. In the end, B40 will be hurt the most
You see, it is never about the B40 or the B60. Reduce benefits from the pocket of the majority, normal people. It can be spending somewhere else. Which I believe smart leaders knows where to spend more beneficial to targeted group.
Yes, smart leaders, like among themselves.
As if the B40 benefits a lot from the fuel subsidies. How much petrol does a kapchai use?
Fuel price goes up, everything goes up, unless the B40 can find enterprising ways to re-sell that petrol, they won’t gain from it.
Everyone forget about fishermen just reselling subsidized fuel instead of going fishing?
Copy paste: “I’m in mid T20 income bracket and I use train, Grab and SOCAR for daily commute. We need to change the mindset public transportation is only for the poor; a country is consider developed when everyone is using public transportation.”
I don’t know for certain who I should blame for the insane inflation recently, but I am very unhappy about that myself. I effectively received a big pay cut since my company only dole out 1 or 2% raises annually (like many companies do by design I expect). Inflation typically averages around 2.5% from what I read and it’s been much much worse lately so companies taking that approach are essentially using inflation to pay their employees less then pocket the difference (as they raise their own prices to keep pace with inflation). This is probably a big part of why they say the only way to get ahead is to hop jobs every couple years I expect.
If I am B10000 it dont matter how much fuel cost me…
lmao at that 1malaysia pin in the photo
Old photo maybe
1mdb supporter?
Go ahead and raise fuel prices,n see the immediate backlash.
Remember,Badawi jacked it up to rm2.70/litre..within 2 weeks,it is like war in Ukraine.
This dude only gave one side of the picture.
The other side is Petronas is having a windfall in excessive profits.Rakyat expects Petronas to do national service,is this too much ?.Business is not back to prepandemic levels apart from travel industry.Many are breaking even,those who cannot tahan just pack up.
Go ahead and jack it up to Rm3.50/litre.
Roti canai,tosei,teh tarik,tambang bas sekolah ,Grab, courier,Lazada..all will be jacked up with no tomorrow.
Rakyat deplete KWSP savings, and now living cost increased by 30-50% but ahsiongkor going to launch MRT3 mega packages.Got logic?
This is the same dude that is asking for removal of subsidy and had dared the govt to do it, now they are mooting just that this lalang cytro here change direction and hentam talking about war here lah, talking about Ukraine lah, talking more grandma stories. Totally untrustworthy fella just like his paymasters.
It is just something they will consider but never implement.
It is a good idea though, just like GST. But just because it is a good idea, Malaysians don’t like that and when that happens it will turn out as the last oil price float brought down a sitting PM (Badawi) and GST brought down the next (Najib).
It is telling that Malaysians don’t like or care about a Govt that practices financial prudence. They voted in PH that raised our debt levels at will anyhow. KWSP depleted? So what, so long as money goes into their pockets. Cost of living going up? So what, so long as essential goods remain controlled it does not affect the majority. MRT3 project is a good idea as it will stimulate the economy but will you people care? So what right, as you don’t qualify for the high tech specialised jobs it will create.
Copy paste: “Infrastructure very important.
With traffic jam.
Lower productivity,
Less wellness,
Company susah mau jaga staff macam tu….
To naik kapchai..? Jom..”
If we continue to subsidise, our currency will continue to fall and our gomen may end up insolvent, like with happened in Pakistan and sri lanka.
Politics of appeasement normally will lead to disaster.
The issue is “HOW” ..
Last time policy defenders say we pay high tax for our cars and in return we get subsidised fuel. Now high price for cars and high price for fuel. Like wtf where the money goes?
Should just remove fuel subsidies and impose fuel tax
Should change tax structure to pollution tax. Anything that pollutes, tax it.
If you say Malaysia not yet ready, then we will never be ready; if you keep having system that benefits only the less fortunate, people will always stay poor.
You can almost guarantee that their implementation will be flawed, and Malaysians will be Malaysians — when it comes to money matters, most people will do anything they can to save those few Ringgit. At the end of the day, maybe they spend even more time and money to “loosely enforce” this thing, then it all goes away in the news like how Singaporeans come and take subsidized RON95.
sad that most of us are still B40 even work till die.
remove all the taxes and duties, then we talk
Gomen should subsidize to all malaysian with certain amount permonth to avoid misuse. For example 300 liter a month. If b40 only, this surely increase the other items cost. Also make buying power is less in the end, gomen get richer (less subsidy can hire more minister?) but people or economy will suffer due to stagnant economy. While indon not allow their sawit to export to ensure the people pay cheap. Malysia should consider that too
Can G control price of goods? Kopi 0 will be rm2 if not rm3. Haiya
Monkey face
It’s not gonna work. You don’t see this kind of BS strategy anywhere else in the world for obvious reasons. Most businesses will definitely raise their prices for goods and services and it’s all back to square one
Everywhere else in the world, they let their B40 rot in hellholes where they cannot escape poverty just see American South or the former industrial cities. The ghetto slums in USA can rival those of Rio de Janeiro. Here at least those in power do care about the B40s if not simply for their massive voting power.
Setiap warga malaysia perlu diberikan subsidi. Wujudkan kaedah baru untuk pastikan hanya rakyat malaysia sahaja layak untuk menerima subsidi minyak contohnya perkasakan penggunaan mykad setiap kali rakyat hendak mengisi minyak. Dari situ kita boleh pantau pembelian minyak setiap rakyat yang layak mengikut pekerjaan @pendapatannya sewajarnya. Pemantauan juga dapat dilakukan dengan kaedah ini dengan setiap kali transksi pembelian minyak dilakukan oleh setiap individu. MyPoint of view.
Perlu kajian terperinci bagi pemberian subsidi. Ada segelintir B40 yang mempunyai pendapatan sampingan lain yang tidak diisytiharkan. Dapat hidup lebih selesa daripada golongan lain yang mungkin mempunyai pendapat yang lebih tinggi tetapi mempunyai tanggungan anak atau keluarga yang besar disamping hanya seorang sahaja yang bekerja di dalam keluarga tersebut.
Nice..im b40 and will subsale oil to m40 and above..time to rip those rich ppl off
That is exactly why you will remain a B40
…That gave us 1MDB folks. And the perpetrators are still at large. It’s nice of them to tell us the government is broke because of us and not years of mismanagement and graft.
Not the same, that was Najib’s administration. Today is under Ismail Sabri and he is not like going to let them return so long as he get the full support of rakyat those responsible would not be returning. There are also so many doubts as those whom are prosecuting, from the lawyers to key witnesses even the judges are found to be just as suspect in this case. So noone is free from implicated of missmanagement and graft not even those from the opposite fence.
The affordable are those who paid higher taxes, spend more to keep the economy going and they are the backbone of the local industries. You are telling everyone that they can’t enjoy a fair share of the country’s natural resources. Minister, use more logical excuses.
The affordable ones are those who paid higher taxes, spend more to keep the economy going and they are the backbone of the local industries. You are telling everyone that they can’t enjoy a fair share of the country’s natural resources. Minister, use more logical excuses.
Nowadays in Malaysia, it seems you are at fault, a criminal and not a Malaysian if you are not B40…everything cannot get…and every thing else are only for B40s…Is this the meaning of fair? Who are the B40s really? Wake up Malaysian….if no subsidies, let it be for all…On the other hand, we paid taxes depending on our salaries…:(
Good Job.
So you were saying those people that work hard and earn money doesn’t need subsidy ? Paying higher tax and can’t enjoy anything from the country ?
Then use the rich people tax, subsidies those “poor people”, including those people that lazy work ?
Wow, fantastic, your brain so functional, rich people must gave you a lot of problems
How much fuel B40 actually use? There might be some owning cars but the number is too low compared to bike and those taking public transport.
Copy paste: “Personally, the MRT has been a godsent for me. I’ve bumped into my director and other T20 folks on the MRT station as well. We’d share a Grab to the office from there. Getting stuck in traffic jams is waste of time.
I’ve never met anyone IRL that thinks public transport is for the poor, where are these backward socmed people even coming from”
How many T20 compared to B40 in public transport? MRT is only a small part of public transport? Come back when you see your director or rather any company’s director taking bus henti-henti.
Copy paste: “I’m in mid T20 income bracket and I use train, Grab and SOCAR for daily commute. We need to change the mindset public transportation is only for the poor; a country is consider developed when everyone is using public transportation.”
No one say public transport is ONLY for poor. Its mainly used by the poor…. and directors from loss making companies. Find a better job dude.
Copy paste: “I’ve taken the MRT SG Buloh line for years now to commute into KL and I can say it is so refreshing to be able to rest or read or whatever instead of being in a jam and being stressed, looking out for motorbikes etc. No idea why anyone would assume that public transport is only for “the poor”. In European countries and US for example literally anyone and everyone takes the subway….”
IT IS NOT GOING TO WORK AND WORSE STILL END UP WASTING RESOURCES TO COME UP WITH THE SYSTEM.
WHEN WILL YOU FREAKS EVER LEARN???
First 100 liters per month subsidized lah, we need petrol to go to work. It’s not like we pump it for leisure.
I have also another question…
If the government doesnt have to subsidise so much already, where will the savings channel to that’s more beneficial to the rakyat?
I want to hear that side of the plan. If not, I would rather have the subsidy, at least I know it goes back to the rakyat.
They want more for their pockets
“Seperti tikus mambaiki labu.”
Leave it to them to @#$% things up.
Easier task to prevent singaporeans from pumping our petrol also cannot do need rakyat to monitor and report police, then now want to implement something that cost bermillion million and may work only for a few months. stop this BS la. u can help B40 more…but don’t forget the upper tiers groups are paying most of the taxes…so consider that some form of rebate to them.
Can the taxes of the M40 and T20 be reduced if we cannot enjoy the fuel subsidy that is paid for using our tax collection
its obvious. they want to keep the subsidy $ for their own pocket and ask the rakyat to subsidise each other.
its obvious. they want to keep the subsidy $ for their own pocket and ask the rakyat to subsidise each other.
some of B40 have imported cars but living at flat house and declared as B40. All privileges goes to B40.
i’m not jealous. i want to jump to B40 from M40. Nothing special for M40. M40 just work to pay income tax and support basic living cost.
1. All the subsidies will be remove after GE15. (Cooking oil, sugar, flour, electricity, fuel, etc)
2. New GST will kick in also (instead of GST, will be branded VAT like Saudia)
3. Hospital and gov clinic pay also will be increase.
4. The all 3 above is G commitment to World Bank as the news last months if you read it.
The B40 very much like the status quo of the G in the name of stability for the upcoming GE, so taste your own medicine.
Copy paste: “nice story, keep it up thumbs up”
Or to blanket his department moving cost from free gov building to expensive rent private building in Presint 3. Not a clever decision.
Im t20, I always almost nvr bother bout fuel price when fueling my BMW AND Benz and for almost 10 yrs I only use Shell red racing fuel. Yesterday for once I looked at it because at RM200 the fuel pump stopped and my car is just little more than half tank filled I wonder why and oooh it is cap. I continue pumping for second time and at RM400 fully filled. Yes, it is RM5plus if not mistaken a liter. Wow……….I will drop to Shell 97 next time cheaper at RM3 sonething..maybe RM200 can fill the whole tank hehe…anyway, Malaysia fuel price is very cheap conpared to others. Just that Malaysian like to have many cars, but we dont have public transport system like Tokyo so who to blame?
nice story, keep it up thumbs up
I am one of those tired hearing of B4o this, B40 that. This is a fair world. You work hard to get what you want, not always waiting others to help you!!!
You thought my T20 income dropped from sky? I study hard and work hard to get it myself. At my age of more than 40, I am still studying MBA thinking how to improve my living standard!
You are not trying to improve your living standard. You are trying to settle your debts but once your salary increase, you’ll get into other debt traps. And then you will have to get a pHD and then double pHD and it will only end when your heart stops beating!
Well, we have no other than Tun to thank for the fuel subsidy fiasco. Go ahead and remove it but at the same time reduce import duty on cars. Im all for it!
They have been talking about this for more than a decade. They just dunno how to implement it.
Meanwhile our neighbours, thailand snd philippines do not subsidise their fuel and their currency got stronger.
Best way is to remove all subsidies. Use the money to reduce deficit and strengthen the currency,
Those in B40 gets RM200 per month wang ehsan.simple.