Big chunk of fuel subsidy enjoyed by T20 group, 53 sen of every RM1 goes to the rich – Tengku Zafrul

Big chunk of fuel subsidy enjoyed by T20 group, 53 sen of every RM1 goes to the rich – Tengku Zafrul

Fuel subsidy, costly as it is, will remain in Malaysia. However, it’s no secret that the government is looking at a more targeted approach to fuel subsidy, as opposed to the current blanket subsidised price, which is enjoyed by all Malaysians, whether rich or poor.

According to finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Malaysia’s rich are enjoying the bulk of government subsidies. He said that the T20 group, the top 20% earners, benefitted from more than half of the RM4 billion the government has spent on petroleum subsidies this year, till March, due to the blanket subsidy method.

“For every RM1 of fuel subsidy, 53 cents go to the T20, while 15 cents benefit the B40. So, for example if the subsidy bill this year is expected to top RM30 billion, over RM15 billion is subsidy to the T20,” he said in a Q1 2022 Malaysian Economy interview today, reported by Astro Awani.

Big chunk of fuel subsidy enjoyed by T20 group, 53 sen of every RM1 goes to the rich – Tengku Zafrul

Zafrul added that the government is revising the mechanism for electricity and petrol subsidies for it to be more targeted and focused on the needy. This is to reduce leakage and ensure that the nation’s resources go to those who really need it. He added that the important things are data and the platform to use.

The subsidy bill is ballooning due to rising energy prices, which is a global phenomenon. Zafrul pointed out that in February 2021, the petroleum subsidy was RM200 million. In January this year, it cost the government RM2 billion to keep prices at the capped levels, and it was over RM4 billion in March.

While costly and unsustainable, subsidies are the reason why Malaysia has relatively low inflation of around 2.2 to 3.2%. Zafrul pointed out that according to the International Monetary Fund (IMF), the inflation rate for developed countries is 5.7% and for developing nations, it’s 8.7%.

Some question the impact of fuel subsidies, as Malaysia is an oil-producing country and we stand to gain if crude prices rise. Unfortunately, we don’t produce enough of it – it’s said that each US$1 increase in crude prices is a RM410 million deficit to the government’s budget – more on this here.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • frostmeat on May 17, 2022 at 5:03 pm

    eh…thought resigned already due to the recent 10k EPF withdrawal?

    Like or Dislike: Thumb up 41 Thumb down 7
    • Er… what?

      Like or Dislike: Thumb up 4 Thumb down 1
      • U help me I help U on May 17, 2022 at 6:55 pm

        1 car uses 200L/mth
        1liter subsidises RM1.70
        5mil cars actively running
        That’s RM1.7b every month
        Can bailout 1MDB every year lo
        Better U all help put in my pocket 1st

        Like or Dislike: Thumb up 9 Thumb down 4
        • Barang.Naik.(BN) on May 18, 2022 at 7:07 am

          Re-introduce GST
          Remove fuel subsidies
          Remove TNB subsidies
          Tunggu jer lepas PRU15

          Like or Dislike: Thumb up 15 Thumb down 12
          • Copy Paste on May 18, 2022 at 8:51 am

            Copy paste: “And you want to give those involve in the penang tunnel opportunity to lead the govt again? Hell no. They are even worst. Look at the flooded bukit kukus elevated highway and the recently flooded with seawater esplanade. Both in penang. We are not blind.”

            Like or Dislike: Thumb up 17 Thumb down 26
      • Rakyat Malaysia on May 17, 2022 at 7:05 pm

        Najis sez, Cash is king. King is rosmah.. Darn right.

        Like or Dislike: Thumb up 22 Thumb down 10
    • Celup King on May 17, 2022 at 5:41 pm

      The solution is simple. MITI to mandate that all new luxury cars must be setup to only use RON97 & above, similar to Civic TypeR or Swift Sport. That way they will only use unsubsidised fuel and leave RON95 for the regular rakyats.

      Like or Dislike: Thumb up 42 Thumb down 16
      • Saynotosubsidy on May 17, 2022 at 6:55 pm

        You think the rich didn’t own perodua or proton? No wonder malaysian are still dependable to subsidy.

        Like or Dislike: Thumb up 9 Thumb down 12
        • of course they own perodua and myvi.. but they are very much less likely drive those car, definitely they will use their continental or luxury cars, the problem is those car still can refuel with subsidised petrol.

          Like or Dislike: Thumb up 13 Thumb down 3
          • Penalize people who are contributing more taxes and rewards? Third world country mindset

            Like or Dislike: Thumb up 31 Thumb down 7
          • Idris on May 18, 2022 at 7:28 pm

            Brilliant idea Zain, but to Lazi is not penalize but participating in contributing more for the needy people.

            Like or Dislike: Thumb up 3 Thumb down 5
  • Dong Gor on May 17, 2022 at 5:05 pm

    assuming u got that facts right, so how much are the rich sipping off from the government? 50 liters a day? just consider it as a rm100-rm150 monthly tax rebate they are paying to help build the country man!!!

    Like or Dislike: Thumb up 57 Thumb down 11
  • The rich paybthe most taxes right? And for you as a T20 minister, the petrol is free right?

    Well-loved. Like or Dislike: Thumb up 113 Thumb down 7
    • Ouchh..

      Like or Dislike: Thumb up 3 Thumb down 0
    • All T20 Menteris T n Go also free, food also free, electricity also free, house also free, tour to foreign country also free, free police escort,etc.
      While some Malaysian struggle everyday, Bapa Dafi went to 3 ministries’ open house event onky for yesterday! Today sure also got another 3.

      Like or Dislike: Thumb up 17 Thumb down 1
  • Rosmah & Ajibkor on May 17, 2022 at 5:06 pm

    Dear Tengku Z
    If the T20 benefits Rm15 B of fuel subsidy..just instruct LHDN to issue letters for “special taxation ” to them lor.
    No need “cheen wan wood kork”in Cantonese…meaning dont bengkok here bengkok there,go straight to the point.
    You need Putin’s Sarmat nuke science meh?

    Like or Dislike: Thumb up 10 Thumb down 79
    • Copy Paste on May 17, 2022 at 5:36 pm

      Copy paste: “Excellent example of simply typing a comment by plucking info from thin air.”

      Like or Dislike: Thumb up 13 Thumb down 6
    • Celup King on May 17, 2022 at 5:45 pm

      This guy talks bullcrap like so easy.
      Under what law can LHDN levy extra taxation onto T20? Just coz they are rich does not mean Gomen can take more money from them without reason, we are a democracy not your beloved China.

      Like or Dislike: Thumb up 33 Thumb down 1
  • GenY AEB on May 17, 2022 at 5:21 pm

    Malaysian Household T20 only earn begining RM10.9k/USD 2k+
    As per 2019 DOSM.
    This is a household income, divide by 2, u get less than RM5.5k per Adult.

    How to keep Local Talent?

    Like or Dislike: Thumb up 33 Thumb down 5
    • Auntie on May 17, 2022 at 7:38 pm

      Now the local talent, study 4 to 6 years
      Foundation, diploma, a level + degree
      Finally get rm3k,

      But dulu spm grad kerja rm800 – 2011
      Now spm grad kerja rm1500 – 2022

      Degree grad, 2011 and 2022, still same.
      How do the kids want to raise a family?
      Maybe government want to subsidize more family?
      But T20 family income each Adult only RM5.5k…,
      Pity the children.. no wonder all using parents money to buy Saga, Axia, buy own 700sqft+ house.. No wonder so many Parents also no more EPF already, before even 65 years old.

      Like or Dislike: Thumb up 17 Thumb down 1
  • newme on May 17, 2022 at 5:23 pm

    Where the gov get all the subsidy money from?

    Like or Dislike: Thumb up 3 Thumb down 7
    • Rakyat Malaysia on May 17, 2022 at 5:31 pm

      Petronas

      Like or Dislike: Thumb up 20 Thumb down 0
      • saynotosubsidy on May 17, 2022 at 6:58 pm

        Cekik sampai mati itu petronas. Selagi boleh kaut kaut sampai kering itu angsa emas
        https://www.astroawani.com/berita-malaysia/bailout-untuk-sapura-sudahsudahlah-guna-angsa-emas-petronas-ahli-ekonomi-361687#.YoM8VIrqHLk.whatsapp

        Like or Dislike: Thumb up 2 Thumb down 4
        • Casual reader on May 18, 2022 at 7:16 am

          Madey as PH PM oso used petronas money to ‘save’ Sapura back then.

          Like or Dislike: Thumb up 5 Thumb down 3
      • orang lama on May 18, 2022 at 9:13 am

        Petronas is a state-own company. It should finance government initiatives that benefit the majority of rakyat, not for select few.

        Like or Dislike: Thumb up 4 Thumb down 2
  • For every RM1 of fuel subsidy, 53 cents go to the T20, while 15 cents benefit the B40 , but please remember this group of people pay more income tax and road tax , car tax (they purchased luxury car ).

    Like or Dislike: Thumb up 41 Thumb down 7
    • saynotosubsidy on May 17, 2022 at 7:01 pm

      Nowadays luxury car engine downsize. Road tax same as honda toyota proton perodua only. You think the rich pay so much tax ar? So naive la you. Those in m40 & b40 pay taxes etc.

      Like or Dislike: Thumb up 9 Thumb down 30
      • Lmao Legend on May 29, 2022 at 10:45 am

        Haha from your statement we are so lucky to have so many m40 to b40, thanks for their contribution. Naive.

        Like or Dislike: Thumb up 0 Thumb down 0
  • anonymous on May 17, 2022 at 5:25 pm

    ok

    Like or Dislike: Thumb up 0 Thumb down 2
  • Speechless on May 17, 2022 at 5:35 pm

    For every RM1 earned by T20, RM0.30 went to the government pocket. Why you never mentioned this Minister? Nah you just wants to put some simple and dumbed statement and hoping to fool rakyat.
    By the way, have you tendered your resignation letter?

    Like or Dislike: Thumb up 46 Thumb down 12
    • Celup King on May 17, 2022 at 5:47 pm

      He is the best FinMin we had in years. Why should he resign for what?

      Like or Dislike: Thumb up 8 Thumb down 35
      • RasPutin on May 18, 2022 at 1:33 pm

        spineless fella. So good why ringgit is dropping like crazy?

        Like or Dislike: Thumb up 2 Thumb down 2
  • So what if I'm a T20 on May 17, 2022 at 6:03 pm

    Kata2 org yg tak berakal

    Like or Dislike: Thumb up 9 Thumb down 5
  • bieight8 on May 17, 2022 at 6:20 pm

    This guy is a genius…

    Like or Dislike: Thumb up 8 Thumb down 0
    • Dong Gor on May 17, 2022 at 7:11 pm

      Damn genius.. He even knows how much petrol we pump. Else he can’t formulate 50c went to the rich u see. Not nominate him to Guinness most genius minister also cannot lo

      Like or Dislike: Thumb up 10 Thumb down 3
  • Firdaus on May 17, 2022 at 7:03 pm

    Just scrap the subsidy system (cooking oil/ fuel etc). At the same time scrap the AP system.
    I’ll be the happiest man in Malaysia!

    Like or Dislike: Thumb up 11 Thumb down 3
    • Veyron Owner on May 18, 2022 at 8:32 am

      You save rm20k in AP but spend rm30k in fuel surcharge. What a genius! No wonder your not one of us.

      Like or Dislike: Thumb up 2 Thumb down 1
  • Who pay for the subsidy? T20 or b40?

    Like or Dislike: Thumb up 12 Thumb down 0
  • terrible idea on May 17, 2022 at 7:29 pm

    what nonsense is this. zafrul… wake up zafrul.

    me as a T20. i pay rm2 tax. i get back rm1 fuel subsidy. the other rm1 goes to subsidising some govt-voting B40.

    if you take away my rm1 subsidy. i will have problems. i will cut cost elsewhere, start to lay off people. that b40 that i employ will lose his job.

    Like or Dislike: Thumb up 33 Thumb down 11
    • jokerwee on May 17, 2022 at 8:59 pm

      you are likely a non bumi. govt lagi suka you lay off the bumi. that will make the bumi hate you more, thus making him think he needs a protector. that protector is the current govt. diorang dah lama rancang. kau je lalai. wkwkwkwkwk

      Like or Dislike: Thumb up 18 Thumb down 5
  • Petrol is the breakfast for champions on May 17, 2022 at 7:39 pm

    If he’s capable of making this kinda statement, it’s a miracle CIMB didn’t went bankrupt under his watch

    Like or Dislike: Thumb up 10 Thumb down 1
  • If this implement,
    Confirm 1,5Turbo cars and above tak laku,
    Makan minyak, difficult to pay.

    T20 salary is not high. It’s household income, rm10.9k 1 family.

    Like or Dislike: Thumb up 9 Thumb down 5
  • The problem with Malaysia tax system is the bulk of the tax actually come from middle income earners that live in the city but being charged a high tax rate not proportional to the income. The tax rate in Malaysia goes up very fast early in the ladder and goes flat eventually and little increment towards the end of the graph and this benefit the “real T20” and chokes the M40. The tax rates doesn’t go up further once it reaches 30% unlike countries in EU that could go as high as 50%. Add the high corruption and leakage, it won’t be long for Sri Lanka 2.0 in Malaysia to happen.

    Like or Dislike: Thumb up 19 Thumb down 3
  • Should be looking at FDI and make pie bigger , why take from own rakyat.

    Like or Dislike: Thumb up 4 Thumb down 0
    • Pie only for American. Here in Malaysia we want cake, just like Marie Antoinnette. “Let them eat cake.”

      Like or Dislike: Thumb up 3 Thumb down 0
  • Nama je T20, tapi hidup bertongkatkan subsidi.. lemah!

    Like or Dislike: Thumb up 9 Thumb down 5
  • ROTI CANAI on May 17, 2022 at 8:55 pm

    remove subsidy, remember lower income tax and remove sst gst import duties etc also

    Like or Dislike: Thumb up 10 Thumb down 1
    • They will lower income rate anything below 13% bracket , next level 21% and above remain untouched from several passed experienced. Whoever increased salary and just cross the border line will suffer “pay cut” for several years to come.

      Like or Dislike: Thumb up 0 Thumb down 0
  • ThePolygon on May 17, 2022 at 9:00 pm

    That’s it lah. I am moving my company nearer to my house. My staff can afford to pay the distance in difference from current location.

    Like or Dislike: Thumb up 6 Thumb down 1
  • klguy on May 17, 2022 at 9:09 pm

    what’s wrong with T20 enjoying the subsidies, they work hard and they are malaysian citizen’s too. in fact T20 contributes a big chuck of paycheck to the govt servants including ministers via tax. perhaps the minister need to start pay for petrol too.

    Like or Dislike: Thumb up 19 Thumb down 2
  • carfan on May 17, 2022 at 9:12 pm

    One option is not to subsidize petrol and give subsidy to targeted groups only. This will also manage behaviour in motor vehicle usage and probably increased public transport usage and reduce vehicle ownership.
    htbrid option- raise stad price to RM3 per litre. If market price go above RM3- Govt will subsidize. If below RM3 surplus to be use for road maintenance.

    Like or Dislike: Thumb up 2 Thumb down 2
  • dua-sen on May 17, 2022 at 9:19 pm

    remove the subsidy, let it float, it’s time to grow up & face the reality. all these “help” will only make you lazy & dependant. human will learn & adapt for survival.

    Like or Dislike: Thumb up 7 Thumb down 2
  • i think he forgot that huge number of commercial vehicles use subsidies fuel as well

    Like or Dislike: Thumb up 4 Thumb down 1
  • You better spend more time how to fix the corrupted govt. Do you remember who is paying more tax as well?

    Like or Dislike: Thumb up 3 Thumb down 0
  • Hmm……then why you do not tell oncome tax paid by T20 also higher?

    Like or Dislike: Thumb up 7 Thumb down 0
  • Hmm……then why you do not tell oncome tax paid by T20 also higher?

    Like or Dislike: Thumb up 4 Thumb down 0
  • Firdaus on May 17, 2022 at 11:19 pm

    Singaporeans pay market rate for everything but soon as commodities price goes up you dont see their pratha and teh tarik prices go up.

    Here in Malaysia, as soon as world prices go up everything goes up. And as soon as gov increase ron95 and diesel price, it goes ip even further.

    So what’s the point of subsidy?

    Like or Dislike: Thumb up 5 Thumb down 3
  • govt of a bunch of T0.1 dudes that hate T20

    Like or Dislike: Thumb up 10 Thumb down 0
  • Keith on May 18, 2022 at 2:22 am

    We pay more tax dumb ass minister, T20 pays more tax than B40

    Like or Dislike: Thumb up 5 Thumb down 0
  • Only in Malaysia M40 and T20 treated like criminals while B40 have all the previlege. It is because they are the largest bank vote. Dependancy syndrom. I have to thank the government who give me something i return.

    Like or Dislike: Thumb up 13 Thumb down 1
  • Bryan on May 18, 2022 at 9:37 am

    high income, paying tax also higher; our tax also your fxxking salary, moron

    Like or Dislike: Thumb up 0 Thumb down 0
  • Victor on May 18, 2022 at 10:33 am

    What’s the issue in allowing T20 to enjoy some subsidy perks? After all they are ‘paying’ for their own subsidy via higher tax collection from this category.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Why the T20 who work hard, pay majority of the tax and propel the country’s economy always treated like criminals in the eyes of the public?

    Why government can’t focus on the root cause of B40 living with low wages and how to improve their livelihood instead? Enough of wealth redistribution or subsidies, it is time to revamp the society starting with education, improve our competitiveness, create high value jobs.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Dear Stupid. The T20 also pays the highest amount of taxes to subsidise the cost petrol. If you change your tax structure to a more inclusive structure, then you would not have this problem. Please don’t blame other for your stupidity.

    Like or Dislike: Thumb up 3 Thumb down 0
  • RasPutin on May 18, 2022 at 1:30 pm

    T20, M40 pay all the taxes. B20 pay no tax.
    Nothing unfair about this. What nonsense is he talking about? Best way is no subsidy. You use then you pay. If rich people use more, they will pay more.

    Like or Dislike: Thumb up 0 Thumb down 0
  • sohai on May 18, 2022 at 2:33 pm

    Please show the calculations…. In full.
    I want to understand how RM15bil out of RM30bil subsidy is going to the T20.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Komen sikit..tak logik la subsidi 50% T20 on May 18, 2022 at 11:24 pm

    Mengarut la..takkan 50% penggunaan subsidi minyak oleh T20. Menteri ni sepatutnya bagi lebih pencerahan tentang subsidi penggunaan minyak oleh kenderaan syarikat-syarikat, termasuklah kereta/van/lori2. Baru la logik..ini main petik je 50% subsidi minyak diguna pakai kumpulan T20.

    Like or Dislike: Thumb up 0 Thumb down 1
    • Axia Bezza Kapcai vs BMW Merc fuel economy. From there, tau tau la berapa liter pakai. Belum kira Alpat & Hellfire fuel economy. T20 takkan sebiji kereta. At least 2 biji. Cecah 50% with extra car + higher fuel consumption.

      Abolish fuel subsidies and return them thru LHDN tax exemption. Then solve the fuel stealing smuggling and let the sinkies pump what fuel they want with floating fuel prices

      Like or Dislike: Thumb up 0 Thumb down 0
  • Economist on May 25, 2022 at 9:00 am

    Targeted subsidy will also cause big inflation. Just leave the one benefit all Malaysians share lah. You think all T20 have it easy when they have 4 kids they have to deal with in KL with such high costs of living ?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Aniki on May 29, 2022 at 11:45 am

    Malaysia still one of those minor countries who always emphasize on T20, M40 and B40 when distribute countries benefits when there is chaos, pandemic etc… They forgot they already got a taxation system in place to get the most from T20 and yet they want to slash away benefits to everyone staying inside this country. If keep doing this and all T20 left Malaysia, you might consider getting lesser income from those B40 contribution…

    Like or Dislike: Thumb up 0 Thumb down 0
 

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