Hard to argue when you put it this way, right? “Those with a BMW cannot receive the same subsidies as those with Kancil,” said international trade and industry minister Datuk Seri Mohamed Azmin Ali over the weekend, as he pushed for a targeted fuel subsidy system.
The MITI minister said that a fuel subsidy scheme where the rich will pay more compared to lower income groups is being considered by his ministry, and that they had discussed ways to ease the impact of rising global crude oil prices, particularly on the lower income group, The Star reported.
Azmin said they talked about the review in recent special retreat. He added that the government is still seeking a suitable restructuring mechanism for fuel subsidy, and that it’s necessary due to a drastic increase in the projected fuel subsidy bill from RM11 billion last year to RM28 billion in 2022.
Azmin’s remarks echo previous statements by his cabinet colleagues such as finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and minister in the PM’s department (economy) Datuk Seri Mustapa Mohamed. It’s very clear now that the government is looking at targeted fuel subsidy to replace the current blanket subsidy, as keeping RON 95 at RM2.05 per litre for everyone is unsustainable at current crude prices.
Last week, Zafrul said that Malaysia’s rich are enjoying the bulk of government subsidies. He explained 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,” the former banker turned senator said, adding that the government is revising the mechanism for electricity and petrol subsidies for it to be more targeted and focused on the needy.
“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 last month.
So, it’s clear then that targeted fuel subsidy is the (very near) future for Malaysia, but the big question of how the government is going to implement it remains. We’re pretty sure that giving fuel subsidy based on car brands or types won’t be it, and Azmin was just using BMW/Kancil to illustrate rich/poor. Also, car engine capacity has the loophole of downsized turbo engines.
How about using the bantuan (BR1M, BPR, BKM, whatever future B) database to determine who deserves subsidy? Sounds good, if the list is fair and correct in the first place.
Just raise it to market price and then give direct cash transfers to worthy recipients to offset? Trusting people to use the cash as intended aside, we’ll have to go back to the bantuan database to determine who gets the payout. Personally, I have doubts on how fair and bulletproof the data is, but that could be just me. Also, is the bantuan net wide enough to catch everyone who needs help?
Then, there’s the often-neglected urban M40 class – while not officially poor, rising living costs hit them hard (perhaps harder than most) and there’s almost never any bantuan to help cushion anything, as the focus is always on assisting the B40.
What’s certain is that coming up with a mechanism for targeted subsidy, and determining who gets it and who doesn’t, is no easy task. Poking holes is much easier than coming up with solutions, as I have just demonstrated above. Any ideas from your end? Also, check out the Pakatan Harapan-era petrol subsidy programme proposal for the B40/M40 and see if it’s workable.
Looking to sell your car? Sell it with Carro.
What is the Vision?
Why acting as Accountant, Cashier?
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/
Almost everyone who can afford NEW car, he/she must be earning >4.9K monthly (T20 group) – except Saga/Axia/Myvi/Persona
Above 70K …. Ativa, Vios, City, Altis, Camry, Civic, CRV, HRV, X50, X70, sure HaiLat semua…
Why the 2 buggers keep on harping on this topic? Like Datuk Mydin said,people curi ikan kembong now..to feed hungry mouths.
Lets have GE 15 next month..we shall hear no more crap from them.
Agree bradder. The sooner GE15 the better when we can kick out these useless PN ministers along with PH as well, keeping our Gomen fully under the same umbrella from 60 years of #BetterNation stability and wise rule. We made a mistake in May 2018 so we must remember that bitter experience never to repeat it ever again for the next 60 years and more.
#BetterNation
Are you OK there brother??!!
Let me say again. 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. My solution is simple, foolproof, and easy to implement which won’t affect those who might concerns on targeted subsidy petrol. The rich will pump unsubsidised RON97 into their luxury cars along with our Sinkies and the M40 & B40 can pump subsidised RON95. Those T20 that are willing to be humble and down to earth for using Proton/Perodua as their daily car can pump RON95 as they are humble enough not to flaunt their wealth around. I think that should be allowed. This way it is fair to everyone.
MITI please take my free suggestion.
What about existing old cars on the road? All use energizer triple A to run?
How many T20 have old cars in their homes lah! Most are newer than your underwear bro. If their new cars are forced to use RON97 then we have no complaints here as using RON95 will risk damaging their cars so I doubt they will do so. Let them use all the RON97 they want.
Except you forget you could add your own additives to change from ron 95 to ron 97. Also what about the 100,000’s of luxury cars that are still running on ron95? Adjusting all new luxury cars to run on ron97 alone will also likely kill luxury car market, what if rich people start buying protons? what will happen to the tax harvesting the government is taking from newly purchased luxury cars? Your free suggestion is free because it lacks thorough thinking.
Im rich. My cheapest car is 330i g20. I only use Racing v power or ron 97 if no choice. Ron95? Nahh..I want power bro and protect my engine performance. Most lux owner have same mindset. Dont syok sendiri pls. By right the subsidy should be scrapped because if you cant fuel without subsidy then you are not qualified to own a car to drive. You are just stretching your little ego. Same everywhere in the world. It mean you use rich ppl tax money as your tongkat. We didnt complain much too. And Kancil? Should be scrap under old car policy if this is a 1st world country like Singapore and Japan. What a bunch of joke from b40 group. You are not entittled to anything frm us, we didnt owe you anything. We worked hard and early and made money and If u cant, you just work for us. Get it? Now a worker face to face to boss will say yes Sir even for you. Just be grateful you in MY thats y you have chance to touch a steering. I dont mind even if gov impose min 20 to 50pct downpayment and max 5 yrs loan. That will ease a lot of congestion and see less rambo otr.
The B40 group of people are not doing enough to upskill themselves and some of them don’t even bother about their kids like those basikal lajak parents. their generations to come will always be in the B40 and will continue to the the burden to the remaining 60%. They are not paying any income tax, getting financial aids and now granting special subsidies. they will always rely on the government and tax payers’ money.
The T20 came a long way to be where they are. they worked hard for it. Those that inherited the wealth from their forefathers, they worked hard to grow the wealth. Now they are being penalized for being rich while the B40 is being rewarded for being poor.
Very well said. With and more more capable, tax paying person migrating out of this fail country, the burden to membela those lazy people will become worst. Malaysia is like a kampung family of 10, but only one adult child working to feed everyone. Singapore is like a family of 3, with 2 hard working parents feeding a baby.
Ahmin abang, salary 5k drive BMW, salary 15k drive Kancil, both go to pump petrol.
So meaning 15k salary Kancil got full subsidy, 5k salary BMW no subsidy… its this the SMART system abang ahmin talk about…?
Yes. So finally the luxury car market may collapse.
No more foreign car investor @ Malaysia, Dark Malaysia soon.
Try to review these:
“Celup King on May 23, 2022 at 11:03 am
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!”.”
Well said !
They are using fuel hikes to punish the innocent motorists.
Where and when in the first place is this “addictive fuel subsidy “started ? The rakyat is just an innocent recepient of this commodity call Ron 95.Didn we ask for fuel subsidy?You give,we take.Dont use M40 and T20 as punching bags.
Now they use B40 as “shield’.
Because you know lah, they need to win their heart (B40) for votes. Hehehe… Give gula2 (protection), then they will sorak like monkeys.
PN MPs just like PH MPs dua dua pon xblh pakai. We must learn from this.
#BetterNation
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*
Guess from now one the T20s don’t need to pay tax….
Pity T20, gaji Baru start RM5k/ $1150
Dah Sini Sana potong…
BMW Bawa pun secondhand RM60k /$14k
6 tahun BMW pun dah tak bernilai…
Skg, lagi bayar Ron97. Lagi BMW no value..
But, Some Darby memang no worry, don’t worry,
Bcuz searing BMW memang tak laku,
Lagi potong Android Auto/Apple Car Play.
Some Darby boleh Jual BMW EV Tax Free…
First, change the road tax system in Malaysia. Myvi RM90 and BMW1.5L aslo RM90.
Agreed. Something as glaring as an outdated road tax system also they don’t want to look into.
When is anyone going to raise this dinasour of a roadtax structure in a turbo charged, electrification age?
This would be the next interesting topic: BMW cannot pay the same roadtax as Myvi
Msia will only regress under the current bunch of jokers. He is exaggerating and blowing things out of proportion. When fuel price increase the our income from fuel increases too. The increased in income might not equal the increase in subsidy but it certainly doesnt transalate into full RM28 billion. Abang, offset with the increased income to give a true picture.
You remove blanket subsidy, those hawkers poor or rich will also have an excuse to increase their prices. So now u give rakyat extra RM200 a month for fuel…then everything else in the world increases….and B40 ends up getting even poorer you donkeys
Can the Assmin dude answer this question?
I have a BMW (2004) 3 series
I am B40,but do you mean just because I have an old junk BMW,I cannot be given special subsidy?
Najib said’ Use your brains”.
Retired Senior citizens can get a monthly capped @ RM50 for senior citizens traveling,
A partial subsidization for his 4 weekends traveling for Food.
Every other ppl, got hand, got leg,
work hard and pay Ron95 @ same rate.
Luxury car ady imposed huge excise tax..
EV are luxury car, but Free Tax – meaningless RM200k vehicles.
Now, where the tax goes?
if bmw cannot, mercedes can or not?
I second that
I think Azmin still hesitate kot,
They keep talking, No transparency, No guideline, No implementation, No integraty consideration of Tax collected from T20, Luxury Car, and Makers.
KJ and Team laju and rapid handling Covid19.
Well considered, integrity, ethical, transparent guideline. Implementation with rapid adjustment to suit. Finally, much Better than developed state/country like Taiwan, and Japan situation now.
Do u trust a “lompat ” politician?
If Assmin or KJ is to be chosen as PM in GE 15…the choice would be obvious.
of course azmin is the better PM material bro. he not simply simply anyhow lompat bro. he did it for us bro. he did us to save malaysians from lim guan eng bro. if you want to call him katak, fine, but he is the very definition of katak berprinsip.
assmingor…you deserve Putin”s sarmat missile for tokok.
And you deserves our Neptune missile for doing the same tokoking.
Support Ukraine! Down with this Putin loving troll!
Ukraine is just US pawn dude. Now US starting to draw line between them already. Ukraine has become useless chess piece already. The Ukraine gov is veru corrupted guy. Read news fro. Both side dont just focus on western propaganda news amd being brainweshed thinking you are not brainwashed. Those are brainwashed highest level skill..lol
Oh you mean he freely gave away all RM330,000,000 Malaysian tax payer compensation to Singapore for his decision. Very great indeed.
tahniah azmin. other than miti, you also doing mof and kpdnhep job. our future pm
Tq for your support, I like your name.
Actually how does 20% of people consume 50% of the fuel subsidy??? If you compare car vs motorbike obviously you can get average 3.5L/100km vs car 7L/100km.
Since Datuk Seri Mohamed Azmin Ali, Datuk Seri Mustapa Mohamed & Tengku Datuk Seri Zafrul Tengku Abdul Aziz all comes or hired by the same party will they get good marks for next election one wonders.
That’s why it’s a good idea that only net tax payer can vote
1. remove all the tax exemptions for luxury car brands like BMW, Merz (and all the brands that all cronies and gov want for their own use). You will see a considerable savings there.
2. Remove and reduce all ministers allowances (seriously, getting paid additional for attending meeting, etc?? that’s part of your job scopes). A lot, I mean a lot (beyond T20). can get helang/elite kind of savings there.
3. Pay cut/increment according to Malaysia economy performance. You guys get paid/elected/hired to manage the country. Not own it.
A man cannot receive the same treatment from another man.
It’s going to fail miserably. Even before we get to that stage, it’s obvious that T20 pays more taxes which in return is used to help the B40 so who is being unfair now? Subsidies are meant for every tax paying citizen. We’re in this together and to do this kinda of crap will only divide the poor and the rich even more.
The govt. should have get rid or replace the fuel subsidy when the fuel price is low now only bising! Azmin and Co. wouldn’t be around after GE15 so why listen to all these future jobless ministers! Sendiri cakap sendiri shiok!
First 100 litre per month subsidize, rest pay full. Since T20 use more and B40 use less according to ministry, this is logical. Use IC to buy. NO IC? Full price for foreigners.
Stupid, then we can just send the lowest income from our family using their IC to pay la. Use brain mahh..
Pakai balik Pak Abdullah Badawi fuel subsidy plan :)
Only an idiot economist only talk about fuel subsidy only without taking into consideration that transportation costs will go up for all goods which in turn caused all goods to rise. Will the govt only subsidize fuel and forget about the rest of the essential goods?
Remove ALL subsidy. FULL STOP.
betul..betul..betul
Tomorrow roti chanai RM5/- a piece
teh tarik $5/- a glass
Tambang bas sekolah ..naik 50%
Grab,taxi….naik 50%
Top Gun moovie…naik 50%
Ex-PH member. What do we expect? Competent? Of course not.
Then why u take salary from those poor? Assuming 20% of tax is from B40
I’ll take BMX then. Still a beemer.
Luxury car are taxed heavily, kenapa nk burden kan lg? Like T20 or M40 tak deserve a good life for their own ka? Yg x patut dpt subsidi ialah politicians, n all kerabat2 diraja.. they should pay double
Cannot touch them. Only angel of death can touch them. You mere human touch them later you ke dalam. Malaysian logic, B40 deserve more. M40-T20 must suap them till burping at all cost.
Firstly, saying that the some (hinting the T20) “do not deserve” these subsidies is inappropriate. Whos is paying the taxes which are used for these subsidies? Leaders in the country ought to be more careful with choices of words.
Secondly, this is not reviewed holistically based on this article. I personally believe there are many who are just at the bordering line of T20 from M40 who stretch themselves to buy a BMW, Mercedes, etc. as a lifestyle choice. Abolishing/reducing fuel subsidies can chase these groups away from spending on such cars in future. The direct implication is that government will receive less tax from sales of these brands.
These kind of strategies cannot promote the country into a higher income nation as what we claim we envision to be.
Thats y real rich ppl buy the latest variant and high range version of the same car. Etc, 530i, 330i, c300, e300 if dont change car every 4 5 years later you guy group them into the stretch and stress group..haha
Can we cut fuel, envoys and car subsidy for ministers? I think that will be a huge bunch of savings…
Haish, always about B40. Try go to the PPR and see for yourself. Many city and ketam park there. How on earth they can afford it? Plus they also milking their house by renting it at exorbitant rates (RM700-800) because of the so-called facilities (LRT, mall etc).
Still trying to protect them for votes? Lemmmaaahhhh.
We pay many taxes, but what we get? To help B40?
Nak tolong ada batasnya…
Tu belum lagi duduk PPR kahwin byk anak ramai (katanya blh hantar Tahfiz) bersepah x jaga main basikal lajak.
Maybe we can move to the radical one by sterilize them (if they don’t want to improve) so that B40 will not spread like pandemic.
If we develop country,
Opportunity will oversell and support B40 for higher salary..
Tax this tax that.
Work hard also no mood already.. how to develop country?
This is very clearly a populist agenda to garner support from the B40 community in time for elections. Why are T20 made to look like bad guys? My earnings put me in the T20 category but I pay my fair share in taxes, I pay every damn toll and tax that the country demands.
This mindset by Assmin and co. is designed to sow hatred for the T20, they are trying to paint the picture that T20 are fat cats that steal from the poor, when in fact we are ordinary law-abiding, salaried employees. I drive a 2003 Vios and a 2013 Alza. Yeah, right… I am a “T20 baddie” !!
Haha, I earn 500k a month, T20, you earn 10k a month T20. He earn 50k a month, t20 too. Wow T20 so big gap. Next time must regroip to T1 to T20.
when a bmw rolls out of showroom, it’s paid enough tax for life time of petrol subsidy for that car d. if everyone is buying kancil, where are you getting the subsidy money from?
Secondly, how did you get 20% of ppl using 50% of the gas? pluck from sky?? there is no tracing on petrol usage at all. show some transparency here and just talk ayam jantan.
there are too many things that are out of your control to make this work:
wages can be linked to IC..but can you link the IC to the car when fueling up? even if you have that canggih system, does petrol operator care who is pumping what into what car?
so make it simple. if your budget is rm1 subsidy base on the consumption volume, just use that to buffer the petrol price. so for now it should be at about 2.7/ liter.
just blindly give up subsidy through the Bantuan is also not right, many of those not even pumping..so more free money at the expense of sky high inflation to everyone?
aiyo…please do one good show for us to see and advertise anything. just one good show is what we are asking for!!!
Just remove fuel subsidies and raise the minimum wage to 6k per month so that the whole country is T100…
“BMW cannot receive the same subsidy as Kancil”
Takes 2 high level ministers to beat the same bush.
Ikut kereta ke ikut orang? Who cares what the car is. Look at the person lah!
Dengan gaji dan elaun yang MP terima, tak patut MP dapat kereta, driver dan petrol free. Elaun pun dah cukup banyak untuk bayar sendiri semua tu.
Bmw owner also rakyatmalaysia la.. they already subsidized the government in advance thru hefty tax and duty for the car. So let them just enjoy the subsidy like the rest. Fair la kan.
azmin u pay tax or not
Here is a typical T20 driving a BMW. He spends RM100 a week on petrol. RM400 a month on petrol. Earns RM15000 per month, pays RM2190 in taxes every month. Government makes a profit.
Now here is a B40. Who makes RM3000 every month. He pays RM20 in income tax each month, he pumps RM50 per week, RM200 per month. Government lost money here.
Malaysia still living in a stone age era. Where coconut shaman can prevent flooding, Mat Rempits roaming the streets freely everywhere, red light runners 24/7, discount for samans, corruption from bottom to the top, Najib still roaming free.
Problem is not the T20, it’s the people in government. Throw Lee Kuan Yew in Malaysia to run Malaysia and you would probably see RM1 = 3 SGD. When politicians takes millions from rakyat no one bats an eye, when T20 pumps RON95 everyone starts rioting.
What about say those who drive Kancil are not allowed to enter 5 star hotel…. (same reason: tak layak)
Alot millionaire in m40 and b40, claiming low salary from their own business but having alot cash on their pocket.
Everybody deserve our own fuel subsidy. But limit it to ‘x’ Liters per month. Don’t discriminate against car model la. If one drive humvee, he should receive the same amount of subsidy with one who drive c70 kapchai. up to them on how they want to spend it. Doesn’t matter la if that c70 fella wants to sell his quota. In a way, t20 is helping b40 with the fuel quota.
Using wallet is on the right track as it binds to our IC number.
Our income tax depends on our earnings. So is not fair to judge a rich man or one using expensive vehicle is not entitle to fuel subsidy. EXAMPLE..A rich man can use a normal car to pumb subsidy petrol so do a B40 can drive an old BMW or Mercedes etc that cost rm 20k to pumb subsidy petrol.Do tis one not entitle for subsidy petrol ? How about foreigners driving any vehicles ? They are pumbing subsidy petrol ! How about A Person pumbing petrol using container ? Is Not Easy to decide unless u have WAYS TO CONTROL IT but that also will have Weaknesses . HUMAN is intelligent creature and will think of ways to get the subsidy petrol.