Another day, another statement on fuel subsidies. This time, it’s from the minister with the unenviable task of managing both viability and assistance. Finance minister Tengku Datuk Seri Zafrul Abdul Aziz says that the government still has sufficient money to continue to provide fuel subsidy despite rising global crude oil prices.
“Our inflation target (this year) is still within what we have said before — between 2.3% and 3.3%. As what the government has said before, the amount of the subsidies for this year will reach RM70 billion, meaning the fuel subsidy will reach RM30 billion. We have made a projection based on Brent oil price. Last month (May), it (fuel subsidy) already reached RM5 billion a month.
“However, at this moment the government will continue to allocate for the subsidy. We are still able to help the people through the subsidy, so we will continue,” he told the media last Friday, reported by Bernama.
However, the senator said that the government’s long-term plan is to implement a targeted subsidy system. That is where only those deemed to be deserving of assistance will get fuel subsidy, as opposed to the current blanket subsidy for all Malaysians. Zafrul previously said that for every RM1 of fuel subsidy in the current system, 53 cents go to the T20, while 15 cents benefit the B40.
When it comes to rising crude prices, which adds to the fuel subsidy bill, many point out that Malaysia is an oil producing country and indeed, Petronas records higher revenue, but it’s not as high as the subsidy bill.
“We will see all (options). From the government revenue, Alhamdulillah, it is increasing as our revenue also depends on commodity prices. Companies like Petronas have also announced their strong financial position (but) whether we will ask for more dividends from Petronas or anything, it has not yet been discussed.
“The government’s revenue has also increased although the increase is not as high as the (increase in) subsidies. We will continue to monitor as this is not only a phenomenon in Malaysia but also at the global level,” Zafrul said.
Speaking of the global level, Malaysians are relatively shielded from inflation as energy costs are low here, with fuel and electricity subsidised by the government. Some essential items have ceiling prices, too. Despite this, ‘cost of living’ has dominated headlines and coffee shop talk of late. Imagine when subsidies are gradually rolled back for the non B40s – will it affect you?
Perhaps we can brace ourselves for higher energy costs by being less wasteful. Keeping the car idle to enjoy the air-con for a takeaway that might take 20 minutes, having the home AC on the whole day, ordering more food than you can eat; you know, things like that. It all adds up.
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No one mentions the increase in SUV sales? (which car companies are the culprits that contribute the most of the sale increase?) Do these SUVs use the same amount of fuel as Myvi? Apparently they use much more. These SUVs, whether assembled locally or abroad, must be made to pump only RON100.
It’s better for BN to remove subsidi b4 PRU15..
Haosiao betoi… Target your head, if want to target then immediate July2022 onwards pls raise Diesel to market price. DIESEL subsidy all goes to T20+ (boss level) who owned Commercial vehicle like truck, van, bus, lorry who millionair but everyday pump subsidy diesel…
5billions per month. Small number la
Half of our tax revenue goes to pension and salary for government servants. So that our rakyat enjoying the best services
BN will remove subsidy when the rakyat is ready for it.
T.01 RM2.50? subsidy
T20 50sen subsidy
B40 14sen subsidy
Maybe we better make a targeted taxing to T.01?
Who will shoot on their own feet? Which minister not from T01 group? LOL Im glad about using cheap RON95 until really got targeted subsidy
July 1..I dare you..remove all fuel subsidies plus launch GST 10%.
Donk keep talking 3 talking 4.
Be a man. Do it.
PH still arguing like petty children squabbling on the playground, always challenging the other, who is more ‘keng’ or who got the bigger balls or who dares more, such kindergarten mentality is what we can expect from PHs’ finest.
That is why they did not last long in Government, when someone stand up to call their bluff they quickly crumble along with their fake promises. This is all that PH amounts to, building sandcastles against rising tides.
The most not suitable B40 cars are those makan minyak vehicles,
E.g 1.5Turbo daily run 10km/L or less.
This is why EEV, Hybrid should be promoted,
Help to reduce burden of B40, M40, T20.
T01 rich man don’t care EEV, so ok.
If B40 choose to drive 1.5Turbo car, thier choice la.
RM2500 salary can get RM1000 monthly installment approval.
Some withdrew EPF for down-payment 20% – Loan confirm easy approval.
Should just remove fuel subsidies because those money should be spent on education, infrastructure and military defence
You r damn damn correct.Ya..spend on Scorpene submarine.
Scorpene subs are for the security of our nation. In terms of Maslow’s Hierarchy of Needs, security ranks above education so of course priority should be given firstly to ensure our nation’s security has priority but I don’t see what is the relevance of subs in this site. Troll much?
yes，agreed. Either subsidized or not subsidized. No double std. Malaysia has too many double std!
You are right. Except the at how sure are you those savings are channel to the right area after removing subsidy?
I would rather have the subsidy as it directly benefit the rakyat and ease some overall inflation.
Differentiate between races = racist.
now, T01 continue to bully T20?
I wonder where is the Taxing Transparency in Malaysia?
Non-unified, no continuity. Then you use a localized data to ‘cheat’ and ‘mislead’? #T20 used up Government Money, now quantified as 53sen/liter?
And then, B40 always refer to ‘poor’ people?
What is the difference compared to racism?
Where is the Authentic Leadership for Transparency?
you try to sound smart, but you’re far away from it.
You and him,
Comparable..
T20s really shaking cos gov is taking their walking sticks after years of being used to it.
T20 only short live for most ppl.
They raise family over 20 after that, they retired.
Continue using outdated cars..
Still far from being T01.
Not able to buy LV, Gucci, BMW.
Today, monthly BMW and Benz sales also less than 3000/Quarter, about less than 1000/month.
We have 33million ppl..
So you see, T01 buy new BMW, Benz
Not T20..
T20 who buy they are just overspending… supporting high Car taxing retails by Gomen.
cut ur salary better
How a country can be developed fast? Start from its people. People needs to work hard in oder to get or enjoy what they want or deserve too.
You mentioned that government subsidizing rm0.53/liter. From my fuel cosumption, abt rm1200 yearly but I paid rm25k for my income tax yearly.
Why MLM can earn money fast? Because they reward high commission to higher sales. Low sales if wish to drive luxury car like top sales, tgey need to work harder. What will happen if MLM punishes top sales and reward those with low sales or even no sales? If you are the top sales, what will you do?
If those poor really have no choice due to certain factor, I will fully support gocernment to help them, such as single parent that need to raise a few kids. But government has provided us free education up to form5 and there are many scholarship and education loan. If you never study hard and blame that your salary is low, then you are just an idiot. Ok, fine, they may claim that they are stupid, really can not study but whether have these people really work hard to learn a skill that may help them grow their skills and paid over years rather than after working 10 years can be beaten by a new worker easily?
They forgot the subsidi money almost all came from T20…
If they keep doing this to help themselves by giving more “benefit” to B40, big earners might leave Malaysia and later B40 and M40 will become B50 and T50 to contribute ur subsidi
“for every RM1 of fuel subsidy in the current system, 53 cents go to the T20, while 15 cents benefit the B40.”
Show us the formula first… or just assume from clause 1 until clause 99?