A target fuel mechanism will be implemented soon, as the government cannot continue to pay for a blanket subsidy due to a sharp jump in fuel pricing.
The government’s total fuel subsidy bill is currently expected to be RM28 billion for the whole of 2022, a sharp rise from the RM11 billion in 2021.
This was revealed by MITI Senior Minister Azmin Ali during a press conference in the US today, where he is currently on a Trade and Investment Promotion Mission.
We have been hearing this messaging for quite some time now. Finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia’s T20 group use up more than half of the fuel subsidy bill. So that’s 20% of the people using more than 50% of the subsidies. So I suppose the idea is to stop this 20% from using the subsidies, saving the government 50% of its subsidy bill every year?
The question is how will the target subsidies be implemented? The government has proposed various ways in the past. In 2008, the government decided to issue a one off fuel subsidy of RM625. It was paid when you renew your road tax. The fuel subsidy was per vehicle, up to a maximum of 5, and for cars it had to have an engine cc of 2,000 and below.
In 2014, there was another plan where those earning below RM5k per month would receive full subsidy, while those earning between RM5k and RM10k would only get partial subsidy. No subsidised fuel for those earning five figures a month. This plan never went through.
But that was the past. Thanks to the pandemic, the government of the day is now used to crunching the data it has and paying out subsidies based on what it knows about how much each rakyat earns.
The simplest way to pay out fuel subsidies would be to sell it at market price at the pumps and pay out subsidies the same way cash aid such as Bantuan Keluarga Malaysia, Bantuan Prihatin Rakyat and Bantuan Khas COVID-19 have been paid out in the past. If you think you qualify but somehow were excluded in the automatic eligibility process, there are ways to appeal.
How do you think the targeted fuel subsidy scheme should be implemented?
Looking to sell your car? Sell it with Carro.
20% of the people using more than 50% of the subsidies.
What is the logic? Hahaha.
Maybe the T20 should travel less, stay at home for the weekend.
Bcuz the T20 don’t want pay expensive petrol for makan minyak vehicles.
Finally, 50% economy further impacted.
If T20 travel less, enjoy lifestyle @ home.
Retails affected, how to pay for RM1500 min worker salary?
Zero subsidi for T20 is not a good thing. Y’all know i owned 3 Vellfire, Lexus LX 460, Lexus, Toyota Land Cruiser, Honda Odyssey, Chrysler Jeep Wrangler, Harley Davidson, 2 Ducati, 3 BMW Motorad, 1 Kawasaki dan 1 Honda C100.
No relevancy, your vehicles are @ the Garage..
Not consuming the subsidized Ron95.
Good that you buy so much but parking, supported the retail business.
you kinda right. those $$$ i got from UKSB every week. I kept them in the cars @ the Garage.. too.
Of course most subsidy goes to T20
T20 >4.9K
B40 <1.7K
https://themalaysianreserve.com/2022/04/18/epf-receives-rm40-1b-special-withdrawal-requests-in-just-2-weeks/
I propose give the 2 menteris a golden handshake.
For a change,redeploy the new Indon Ambassador as Finance Minister.
haha…
Agreed. He would’ve make a better Finance Minister than me. Haha
No worries. After GE15, these 2 PN mentris will be replaced by more capable #BetterNation mentris.
Government collect so many times more tax from this group already is it still not enough? If T20 change their mind all drive low cost car did government check how much road taxes they loose every year including the exorbitant high tax brackets for expensive cars making buying cars in Malaysia ONE OF THE MOST EXPENSIVE IN THE WORLD. T20 also paying more income tax if not at the highest tax bracket. Is this not enough? T20 owns many cars yet driving one only at a time but paid expensive taxes for the undriven cars is this not favoring government? The list will continue but the problem is WHY government never list out how much taxes contributed by T20…….
How much ti charge to kiasu?
Singaporen are tourist,
Welcome tourist to spend @ Malaysia retail.
Support economy, #cuti cuti malaysia.
Why should they pay more than other tourist?
Can the 2 menteris answer this question: When you see a person drowning(in economic sense),do you throw him a lifebuoy or a heavy anchor?
Perhaps they are trying to “impress or score political points”but not when people are having worries putting food on the table.
T20 has no worries putting food on the table so no issues to remove their access to subsidised fuel.
When they want to remove some benefits given to rakyat..they can say MRT 3 ,and ECRL needs $$$ to be set aside, progress payments,including the IMDB bonds,and other big borrowings.
But make no mistake..at Rm2.70litre jacked up by Badawi,all hell broke loose within a month,you remember?
The rakyat has a sound memory like Tun M,belum nyanyok lagi.
Government project required Value Engineering to ensure Return Rate for the Economy.
MRT3 not only supported initial job opportunity and encourage local engineering development, it’s operation continued required various field of specialist and manpower to support.
A investment return usually comes after a few years,
the fund of these mega projects – should be supported Loan, that’s how a Country’s debt going higher too.
not from subsidies.
Rakyat has sound memory, which is why we remember all these talks would not happen if PH fulfilled their RM 1.50 per litre petrol promise. We will always remember that in every and any election foreva!
More like MP and minister + police rider (the one escort car) should be charge for more
But will DAP pay for their MP’s son? I doubt it. They will just get it from taxpayers as usual.
Coming from Lambo tered
https://paultan.org/2022/05/20/lamborghini-owners-malaysia-to-attempt-largest-gathering-next-month-gala-to-raise-funds-for-charity/
Funny how so many negative comments about these T20 but then when Gomen want to tax them more thru targeted subsidies all came to plotek these T20 pulak! *shake head*
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.
So what, your cant force rich people to only buy those cars. They can still drive a round a Proton X50 and gulp RON95. What stupid b4ngsat idea!
Copy paste: “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.”
https://paultan.org/2022/04/06/hypercar-collector-jp-chin-daily-drives-a-proton-x50-x70-but-has-hundreds-of-millions-worth-of-other-cars/
This is example of Top 1% driving X50 for daily, gulping Ron95.
Hypercar collector. Hypercars and Kancil kept @ garage.
Of cuz, he won’t able to consume 50% of the subsidized petrol, negligible for his travel usage.
If a T20 is willing to use a Proton as his daily use, then he is a prudent person, not a spendthrift and deserves to pump RON95.
If a T20 wanna show off that he is rich, then he won’t mind limited to pumping RON97 into his luxury car. He could even put on bumper sticker that reads “Only Drinks RON97 Above!”.
Scrap fuel subsidies, remove AP’s and high taxes for car’s. If the government can complain about fuel subsidies, we also can complain about high car taxes.
difference is you can complain, but cannot do anything. govt got the power to do something.
The Assmin dude reportedly said BMW owners shouldnt enjoy fuel subsidies,like Kancil owners. Do u know there r many B40 and M40 who own 15-25 year old BMW or Mercedes?
OK ,we dont deny it cost Rm28 B this year for fuel subsidies.Petronas,as a last resort “bank”,with windfall profits, dont tell me cant do national service.Maybe petronas foot Rm20B,the RM8B..gomen maintain car taxes and road tax,boleh?
We humbly ask Petronas to save the rakyat from super inflation,as many businesses are still not out of the woods yet,due to covid.
Once the subsidy for the masses is removed..every damn thing linked to fuel is on an upward ballistic trajectory.
Those chauferred menteris got no worries ,but all hell will be unleashed once hyperinflation sets in.Whats goes up..will not come down. this time.
If fuel subsidy is really a burden, senang saja. Think long term. Reduce/remove tax for hybrid and electric vehicle. Sell them cheap2. Create trade in program from petrol to hybrid or electric. In 5 years, when people use energy efficient car, you remove fuel subsidy pun nobody care.
The objective of Hybrids and EVs are not to save $$$ but to save the environment.
Unless we have a mechanism to include cost of Battery Replacement, the poor fellow won’t be able to afford payment at one go when replacement is required especially when purchasing a used Hybrids or EVs.
Perhaps in the future, theft of vehicle batteries would be on the rise as the demand for it rises with more and more Hybrids and EVs on the road.
You save like RM 20k for removal of AP and taxes but spend like RM 30/40k for fuel surcharge paying full price.
Genius idea! No wonder Malaysia is going down the dumps.
To solve the best solution: Take public transport. No worries too much. Less jam and less pollution
1. Find the politician/family member have yet to pay tax.
2. Increase the Car tax gradually base on the car price above 200k
3. All minister get a pay cut.
For No. 2: Best to take public transport, help to reduce jams and more environment friendly
I really do not how can I take pblic transport to work. None!
Then you have learn how to take public transport. Very Simple!!!
ok, show me how from setia alam to shah alam seksyen 27.
Take the nearest stop and hop onto Rapid Bus 753 then switch to Bus 752 and you will end up opposite of 7-11 at Seksyen 27.
then you come here and take bus to work and see what your boss will do on you. I have been staying here for more than 10 yrs but never see a bus before during going to work and back home.
I can understand your situation, and i was a driver but now LRT + Grab user. LRT and MRT is really good as they are punctual with high frequency but definitely not buses. People do not want to waste hours on buses hence they drive. i solve my first/last mile with Grab + walking for daily commute. Ride hailing could be expensive if doing it daily hence buying a car is cheaper in that sense (which is true, YMMV including maintenance and age of car). It is a catch 22 problem for now.
Because the fuel too cheap for you lah
T20 each parent Ave. only RM5.5k, 1 household start from RM10.9k per 2019 DOSM.
T10 each parent Ave. only RM7.5k, 1 household start from RM15.0k per 2019 DOSM.
In fact, there are not much individual from Household malaysian earning > 5 figure /RM 10,000.
Why all the fuss?
Finding idea to get fund for new operation team to enforce and control?
there is easier way. No need to think of double std. Just remove for everyone. Thrn no one can make noise as it is fair.
If no money to pay for fuel, do not drive. Can use motorbike, can cycle, can walk. Why must drive?
Remove bumi’s privilege too…gov can gain alot money there
strip citizenship from those who can’t converse bahasa kebangsaan well. it’s a prerequisite to being a malaysian!
Bumi privilege is what gives the majority their parity spending power, stripped of their status the majority will be in survival mode and spend less in nons punya shops and businesses. All these taukes and taikors can saupei close shop then. Wouldn’t that will be disastrous to all rakyat and to our economy? Think about that b4 nons simply make demands. Everyone has a role in the economy not just the certain segments and T20.
If the majority needs privilege to survive, what does that say about the majority? The nons can become taukes and taikors without privileges, what does that show? They will survive and thrive no matter what.
So you are saying, without the privileges, the majority is basically useless? Cannot survive already? Forever beggar? It’s that kind of thinking that Tun M is sick of. Will never change huh?.
Ok lah, since you admitted already that the majority is useless and in survival mode without privileges, better to not take away privileges. Otherwise crime rate will increase.
The key is that the nons here can become T10 and T20 taukes & taikors thanks to majority patronage. If our majority are not spending in nons shops, like during Covid MCO, they still can bangga show off their riches around? Hahaha, right. Keeping bumi privilege keeps the economy afloat, you think the whole country economy can sustain just by the spendings of our 20% kah? Hahaha, right. Bodoh kan to antagonise your customer, give them their spending power and they will spend to make you rich, win-win for all. Isn’t that better than a win-lose situation some have been pushing for a long time now?
Wait T10 household is only 15k a month!? I would have thought it was way higher considering the income categories do not increase on a linesr scale.
I am aware the top 2% are insane. We are talking deca and centillionaires.
Then the 0.2%….
Easy to understand that The T10 & T20 have ways to hide their real income so what is being reported does not reflect their actual wealth. Rule of thumb is double it, that is their actual worth and the correct level for T20 & T10.
Only T10 and T20 can afford to have offshore bank accounts, businesses, & properties to store their real fortune compared to B40. What you see is not really what you see.
T20 can afford to switch to full EVs
Malaysia is low income country. The top20% classified as T20 only with household income of rm12k. If both couple working/ mean husbnd and wife earn rm6k, respectively. After deduct income tax and EPF, left rm4500 only. So, do you think is it very high?
The government minister and all the colonies, total of less than 1% are really super high!
T20 pays the most taxes, heck they should receive the most subsidies!
Great.
How did u get the number 20% of the ppl using 50% of the subsidy? There is no tracking how much petrol is one pumping! It’s just another magical equation these donkeys have like the days where we have fluctuating gas price. On paper is nice, but when fully implemented there won’t be 50% saving…No where near that and what is guaranteed is inflation off the roof. Everything is gonna go up and never come down. In the end everyone die together!
This is the result of letting donkeys run the country. Pui!
Excuse to solve problem but that not the root cause. Our ministers do not propose solution based on fact but like to pluck from air anytine they like. Really need to make MBA is compulsory for them. Really do not have management skills!
Cut fuel subsidies…but got $$$ for MRT3, HSR all billions of RM..got logic?
Of course! It is exactly the right project when fuel is going up! The reason why public transportation take up is not high caused by cheap fuel, once the fuel cost goes up more and more will be looking towards mass public transportation and projects like MRT3, ECRL, HSR, KVDT will be the catalyst for people in this nation to move around.
It is a stoke of genius timing!
Household Expenditure Survey Report 2019
What is so proud to be T20 in Malaysia being low income country. Household income reaching rm12k is T20. If both couple working, average of rm6k salary. After deduct income tax and epf, left only abt rm4500. Wow! rm4500 really very much!!!! Need me to list out the expenses one by one to see how much money I can save? Here, buy house expensive, buy car also with high tax, buy cooking oil also so expensive, do business being forced to increase minimum wages without need to increase productivity. Really easy for you to be high income country by forcing the employers to increase wages!
catch all the millionaires that are escaping from paying taxes. then we talk.
Apparently we have fools abundantly.. will Malaysia be happy if crude stays at 60usd and below, if so just ask PETRONAS to do so, no subsidies then.. all idiots happy, no more argument on who is benefitting more.. racial harmony and everyone happy. These political idiots just want to instigate and segregate the Malaysians. The truth is old cars or even new ones with inefficient engines use up the most petrol unnecessarily. You raise the petrol/diesel (energy) price, you will get hyper inflation.. just like what is happening in the west.. we had gone through that not so long ago. Just idiots want to unset apple cart for political milage.
Felt that it’s a bit hard to implement. Anyway my suggestion as below:
Use a system to detect IC at pump to purchase subsidy fuel. the system will link with Lhdn to categorised whether the person eligible to buy subsidy fuel. They can categorised T20 for rm200 mthly limit, M40 for Rm500, and B40 Rm800. By this way, they able to stop non msian to buy subsidy fuel as well. Anyway, just my 2 cents. tq
Link here link there spend ber billion billion, (80% pocket ya), in the end no saving cos many B40 will have extra job. Just stand at petrol station help ppl pump with their ic until cap is hit. But no worry, continue to squeeze and segregate, soon there will be no more t20 on Malaysia.
Buang juga subsidi minyak untuk menteri-menteri dan timbalan-timbalan menteri yang dapat elaun minyak percuma setiap bulan, rakyat makin tertekan eh mereka boleh pula joli sakan duit rakyat. Bayar sendiri tol, bil utiliti dan sebagainya pakai duit gaji sendiri jangan asyik nak pau duit rakyat. Kalau saya pakai used car Mercedes tahun 1990-an pun dikira T20 pula jugak kan? Kereta buruk pun Kono?
I’ll vote you in next elextion if you are competing..hahah
a bunch of crooks that never learn. just lost at pre & post Dr. M era. He was adamant to keep prices low and inflation was kept in check. Once he’s gone the next joker cleverly raise the petrol price and prices of goods was through the roof. Then the next joker made it even worse. History was made and prices of goods have never come down ever since.
when petrol go up 0.20 cents, hawkers increase their price RM0.50 to RM1. when petrol goes down 50 cents the prices remain the same. those politician up there are a bunch of jokers
So they are digging their own grave isn’t it.
Are these 2 PN ministers trying to sabotage UMNO’s PM
Please reduce cabinet size first.
Assalamualaikum seluruh Malaysia. Untuk semua rakyaat bebilang kaum. Saya cadangkan subsidi minyak diberi Cara berikut:-
1. Siapa Yang memiliki lebih dari dus kereta tidak dapat subsidi minyak.
2. Cuma kereta 1800cc ke bawah sahaja dibenarkan dapat subsidi. Dicadangkan 180rm setahun. Cara bayaran lalui bila barui roadtax.
3. Mereka yang berumur lebih 60 tahun dapat subsidi sebanyak 60rm sebulan. Cara bayaran lalui barui roadtax (setahun 720rm) atau lalui BKM.
4. Mereka yang berumur lebih 60 tahun kebanyakan dah bersara dan wargamas. Mereka ini takdapat 180rm subsidi jika sudah dapat subsidi 720rm setahun.
Di harap semua wakilrakyaat dan menteri Kita dapat beri prihatin Dan kesejahteraan rakyaat.
Terms kasih.
Awak sape?
Everybody free to give comments here, including that uncle.
Tuan,
Cadangan tuan tak beberapa tepat kepada sasaran,
BMW model baru dah banyak yang berkapasiti enjin kurang daripada 1800cc dan banyak juga model yang hybrid/phev, mereka semua boleh sahaja gunakan subsidi petrol ron95 tersebut.
Sekian.
Sadly, knowing how inefficient and incompetent government bureaucrats are, I don’t think any targeted long term subsidy will be efficient and timely enough for those who need them. A more simpler approach would be to taper those subsidies over time but bring in EV alternatives and increase spending on public transportation, meanwhile cushioning the B20 with transportation costs incorporated as part of welfare cheques.
Heavily subsidising fossil fuels in a time when the world is focused on reducing CO2 emissions is a narrow minded, politically motivated and self destructive policy. Have a look a the fuel prices in the neighbouring countries of South East Asia and you will see that most of our brethrens are paying double or quadruple what Malaysians are. I say we scrap the subsidies, let the price of fuel increase slowly and use the savings to develop a viable and eco friendly public transportation system, like having a lot more buses and routes where they are needed. We need to abandon the Car-centric transportation policies of the last century which in the case of ICE vehicles are not only polluting, but takes up a disproportionate amount of public space for expensive infrastructure. Even the electric powered car uses energy inefficiently when used to carry a single occupant. We need to develop a transportation system around public transport, micromobility vehicles and safe pedestrian footpaths (aka walking) and the policies which support it.
easy said than done. if subsidy removed, all barang price will go up.
and don’t forget. we are the only oil exporter in Asia.
talk is cheap, sir.
In the end it’s the votes that politically count..subsidies will be targeted to mainstream BN voters the above average income earner apparently don’t matter and best way to show or only way is at ballot box
Targeted subsidies are still better than pluck from sky promises. Yes, ballot box will show we no longer get taken by promise of RM 1.0 per litre petrol, promise of abolish tolls, promise of PTPTN waiver, promise of a better Gomen.
Government should impose fuel tax so that the fuel prices should match that of Singapore, so that less people will drive and less pollution
Like – RM2.50 ceiling price RON95 for all
Dislike – discrimination towards T20, M40 and B40 who owns old BMW, Mercedes, etc.
Next, tepung, beras, gula, elektrik, hospital
How much we can trust the T20 utilize 50% of the subsidy is questionable,, each person only has 1 butt to sit 1 car. I also know many B40 own many vehicles and the so called B40 are also not reporting real income but enjoying extra subsidy from govt.
I’m not sure if govt is setting another plan to withdraw fund and distribute to all B40, M40, etc, that’s another loop hole for how govt control and manage the u claim money, end with whose account pool?
Will oil increased bring in more income to the country as well?
Why not a govt to create a fair policy by encourage the people how to plan and use wisely for each trip by totally remove the subsidy? Stop spoon feeding, don’t drive if they can’t afford fuel price, promote public transport that govt heavily spent using the country fund (hope don’t ask the T20 to pay more for using it as they are already paying more incoming tax for the country). Let’s teach the fisherman to catch fish rather than just feed them. .
Govt should think for a long term solution how to utilize the subsidy saving to better help the poor by create job opportunities, food price control, affordable houses, etc.
And last but not least, how much is our beloved minister spent in oversea this round?
Whatever, so far remained hopeless for the govt.
Someone here just admitted he got more vehicles than his T20 butt. See:
Zero subsidi for T20 is not a good thing. Y’all know i owned 3 Vellfire, Lexus LX 460, Lexus, Toyota Land Cruiser, Honda Odyssey, Chrysler Jeep Wrangler, Harley Davidson, 2 Ducati, 3 BMW Motorad, 1 Kawasaki dan 1 Honda C100.
So the Gomen is right to tax the shits out of these T20 but should be in a way not discriminating against the B40, by mandating all luxury cars to be set to use only RON97 above.
How many % of Mercedes and BMW are having 2000cc and below? Govt failure and they still live inside the cave.
Yes. Remove subsidy for top tax paying citizens and give them to good-for-nothing mat rempit and bantuan leeches.
Again please show us the data so that we can help to think.
I don’t think “20% of the people use 50% of the subsidy” is “correct”. I would think the majority of fuel usage went to corporates and companies and their employees in carrying out duties. A sales person driving around town engaging clients, a dispatch guy delivering documents, where do you park those usage? T20?
How many vehicles on the road are corporate registered vs private? All T20?
First questions first
1. how confident are you that everyone is reporting their true income?
2. how certain are you that the system is not corrupted when dishing out targetted subsidies ?
The best way is for Gov to spend money to raise our currency. This way fuel cost in RM will lower and dont have to keep spending money for subsidy.
Also living cost will automatically be lower, since each RM can buy more than if the RM were small.
Government can’t enforce the fuel usage of Singaporean drivers using Malaysian subsidized fuel… Skrg ni want to enforce fuel subsidies for targeted groups. Boleh ke?
Boleh… Apa pun boleh. Most important is submit proposal dulu.. And then spend ber million million for infra. In the end net loss to government and Rakyat pay the fee. The jokers pocket Kau kau from project commission etc. That’s how we get from 1 usd to myr 4.5.. And even traveling to Thailand now seems manyak mahal. Thanks to unlimited jockers running the show
What about the percentage of people paying tax vs those kampung folk who dont?fraction of urban folk paying majority of tax to fill the gov coffers yet is the kampung ppl that are the king makers and receive most subsidy.
The urban folks paying taxes are paying cuz they can afford to pay.
The kampung folks not paying taxes are not qualified to pay coz they cannot afford to pay.
I made a suggestion during Pak Lah’s tenure and his secretary replied back to me, saying my suggestion will be seriously considered if the fuel price continue to rise. Few weeks later, the price stabilised back and my suggestion was never considered.
My suggestion was(briefly) :
(TBC)
Bmw and Mercedes owner pay full price la
Perodua and Proton is making up 70% – 80% sales.
Basically T20 aren’t driving Perodua and Proton.
Non Perodua and Proton, just pay full price la.
Follow your logic and ministry of T20.
This also help #supportlokal during bad economy time.
But finally, alot CKD plant can tutup kedai, alot job opputurnity lost too.
Alot car workshop and repair shop also tutup kedai..
Economy just may get even worse.
No more foreign investor.
It’s an economical plot sketched by the government, not just in malaysia but other countries as well..
think about it…
The government is making people to spend less to control inflation.
Remember opr raised to 25pts. Increasing interest rate is a decade old technic by gov banks to control inflation. Adding to that, they are increasing fuel price to reinforce this strategy.
Look at what’s happening around us,
1. US is heading to ressesion
2. Russia-Ukraine war, (wheat and oil shortage)
3. China lockdown (material shortage)
4. Indonesia (plam oil export restrictions)
Supply is low, demand is high = price goes up( inflation)
The gov cant control the supply but trying to control demand. So they make us spend less on other things.
I wish to see transparency. This excuse is bullshit.
Rather than so called giving excuses, aren’t our Gohmen just following the examples of other countries in a wave of raising interest rates to stem inflation? USA is doing it, Japan is doing it, Aussies is doing it, none of them have to justify or open for transparency scrutiny so why is it that we must be the one to do that? The economists in Gohmen knows what needs done, so just let them carry on their job unhindered.
Remove all subsidies. But please bail out Sapura, Serba Dinamik, MAS, Air Asia, Tabung Haji, etc. Kesian diaorang. We get petrol RM2.05/l. They get billions .. win-win
Alot T20 use motorbike also.
The ministry might as well be more visionary and focus on real development,
5G ready, more foreign investment, etc.
MY 2022 budget is RM332.1 billion, and Government revenue is set at a targeted RM234 billion in 2022.
28 billion fuel subsidy is >12% of government spending. However, we want to know, how much the government has gained from the high oil price? What is the extra income vs expenditure?
https://www.mof.gov.my/portal/en/news/press-citations/budget-2022-highlights-summary
https://paultan.org/2022/03/09/rising-oil-prices-fuel-subsidy-costs-malaysia-more-than-it-profits-each-us1-increase-is-a-rm410m-deficit/
Here is the answer. In reality, we lost more than we gain.
No sense in talking economy to our ministers.. judging by the inflation in the West with no subsidy inflation had gone up more than 8percent lately, meaning the 12percent in subsidy is less.. the spending of Malaysians will likely spend 8percent less, getting us to negative return without subsidy.. does the government know where is the focal point in energy (fuel) price to elevate revenue.. it doesn’t seem so.. in fact perhaps by lowering the fuel cost further will stimulate higher revenue.. for all we know Perodua or proton cars of Malaysia standard are not allowed in USA roads, they are polluters for having so inefficient engines and control.. a 1.5k cc car in those countries consume as much petrol as our 1k cc Malaysia made car.. our present government need to improve tremendously.
Gain? You know I know good enough.
Minister using Vellfire also.
how much does the gov gain from high oil price?
Sh………gain one diam diam, subsidize one use loud speaker!
T20 are the one contributing to your country and have been heavily taxed on income. The lower level just know how to lajak and rempit. You are now giving them more money to buy new bike and do more illegal races, causing the country to regress. Well done!
Just vote them out. Habis cerita. Kerajaan tak prihatin rakyat. No fuel subsidy + high car price. Malaysia is a 3rd world country unlike Singapore. You remove subsidy, hyperinflation comes in making things worse! Better cut all the minister’s pay, wastage and corruption.
Actually, why not limited and equal subsidy for all?
Here’s some thought exercize: assume we want limit subsidy to 10B a year. Assume kids below 15 doesn’t need subsidy. We have 25m adults, regardless of whether they drive.
10b divide equally, that’s rm400 per person, 100 per quarter. Now: every age 16 and up is entitled to rm100 fuel subsidy if they apply for it, every 3 months.
You have 1 partner and 2 teenage kids but only 2 kapcai? You get rm400 every 3 month; You live with your parter, double income no kids and 3 velfire? You get rm200 every 3 months.
The idea is, if you think it’s too troublesome to apply for very little subsidy every 3 months, you are probably rich enough anyway.
Granted, sure got people scold me, but I’m sure those people just want subsidy without having to do anything because they can benefit from the current system and they don’t care about the big picture, or it doesn’t fit their agenda.
So in two years, we wasted nearly 40 bil in fuel subsidies. And its not even 1 years yet.
This is the main reason why myr is depreciating. In thailand, philippines, they did away with fuel subsidies 15 years ago hence reason why their currency appreciate agsinst ours.