Malaysian motorists will be paying market price for RON 95 petrol and diesel soon, as there’s a high possibility that targeted subsidies will be implemented next year. This is the view of Maybank Investment Bank, reported by BH.
“We expect higher prices for RON 95 petrol and diesel next year with the revision of fuel subsidy. We understand that the test for the targeted subsidy mechanism started last month and will go on for three to six months. Therefore, we predict that fuel subsidy will be revised again next year as part of the Budget 2023 agenda, which is scheduled for October 7,” Maybank IB said in a research note.
The need for Malaysian to move away from blanket fuel subsidy is clear. The T20 group, which is the top 20% of earners in the country, is enjoying some RM8 billion in fuel subsidies compared to the RM6 billion enjoyed by the bottom 40% (B40). This was revealed by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in July.
He was repeating what he said in May, that Malaysia’s rich are enjoying the lion’s share of government subsidies. “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 senator said then.
Why so? The affluent have more cars, their cars consume more fuel and have larger fuel tanks. It’s as simple as that. While the need for targeted subsidy is clear, it’s much harder to find good way to implement a system that will that benefit the intended recipients with minimal leakage, and is universal.
In July, Tengku Zafrul, in a written parliamentary reply, said that a mechanism for targeted subsidy is being tested. “The (initial) testing will be followed by more extensive testing,” he said, adding that the government wants to ensure the feasibility of the mechanism in both urban and rural areas.
“It (testing) is expected to take between three and six months before the new system is implemented nationwide,” he said, adding that the implementation of the targeted fuel subsidy mechanism will be implemented in stages to ensure it does not cause inflation or affect economic growth. Will the government use direct cash handouts via e-wallets?
We’ll have to wait for more details, which might be announced during Budget 2023 next month. By the way, Indonesia is also grappling with the dilemma of fuel subsidies. Having already tripled its original 2022 energy subsidy allocation, the republic is considering raising fuel prices – which are already higher than ours – by 30%.
Are you ready to pay market price for fuel? RON 97 is currently priced at RM4.30 per litre.
Looking to sell your car? Sell it with Carro.
I think the b40 and m40 will suffer more once the blanket lifted. T20 just feel like being pinched once grocery and basic necessities having price increased.
Lol Yeah, just you wait they will 101% remove subsidies AFTER the election, which will leave all their rural voters high and dry.
But they won’t bother to help because they already got the votes, they will come back again in 5 years with the same thing give money or rice. The cycle repeats itself.
Dont worry folks….now all the corrupted dudes are being sent to Kajang(can tapao satay)prison.
By the time GE is held..all of these goons will be WIPED out by voters who REJECT sensationalism,rhetoric and pure corruption.
Remember,kataks will drown this GE15.Simply no place for survival.
Lets not worry too much.We’ll cross the bridge when it comes.But VOTE and bury all the corrupted dudes.
Time will tell. How much govt can afford?
Implementation of targeted subsidy should come with GST2.0 so that T20 would not dare to take advantage of the situation plus the additional income from GST will flow back to the B40 & partly M40 too.
And don’t remove subsidies for diesel. Diesel is used for commerical, industries, truck for carrying cars and others
When Europe switches over to EV, expect premium diesel powered cars to flood our market. Diesel is not used only by trucks or fishing vessel but some luxury cars too ie BMW 320d.
Better don’t remove subsides for diesel. Subsidies for diesel is more important for commercial and industries.
B40 won’t affected but M40 and T20 will not enjoy fuel subsidy. But did you think the government will have enough money to continue all of them for fuel subsidy for Ron95?
https://paultan.org/2022/04/26/govt-to-implement-targeted-fuel-subsidy-for-b40-to-replace-current-blanket-a-matter-of-time-mustapa/
Should do consideration by removing subsidies and taxes for turbo petrol cars, except for turbo diesel cars.
Turbo petrol cars is expensive to maintain and also for maintenance cost and mainly for rich income group. NA Petrol Engine cars are more cheaper plus maintenance cost is also cheaper and mainly for lower and middle income group. Turbo petrol cars performance is greater but can causes huge problems for reliability while NA petrol Engine cars performance is not as good as turbo petrol cars but performance for NA petrol engine cars is good enough and don’t need big performance.
Hybrid petrol cars is also still needed and benefits for fuel economy and lesser carbon emissions than turbo petrol cars.
Turbo diesel engine cars like pick up trucks that is Hilux and D-Max are needed because of logistics, industries, logging and others
I agree with you. Turbo is for sporty car and more premium than ordinary cars
It is time to tax the rich like turbo gasoline cars. What you need for? Just to show off? This is worthless!!!
Better to carry on fuel subsides but making less taxes for naturally aspirated engine, hybrid and turbo diesel cars
But M40 should also get fuel subsidize but not all of M40
PETALING JAYA: An economist has criticised the use of e-vouchers and e-wallets for targeted subsidies, labelling it “stupid”.
Geoffrey Williams of the Malaysia University of Science and Technology said such e-wallets would be inaccessible to the lower income group and that the system could be prone to corrupt practices.
“Despite hearing about the importance of targeted subsidies many times, we still don’t have a solution.
“The most recent discussions involved targeting specific products through e-vouchers and e-wallets but this is by far the most stupid idea and most stupid way of targeting subsidies,” he said at a forum titled “Pathway to a Better Future Malaysia”.
Williams said subsidised items were likely to be sold in big supermarkets as these stores accepted e-wallet payments while smaller businesses or neighbourhood convenience stores would miss out on the subsidies. Those in the lower income group, he said, would suffer from this as they tended to shop at their neighbourhood stores.
He added that there was also the opportunity for corruption within the system with government officials or businesses making money at the expense of the needy.
Williams called on the government to implement cash transfers instead. “Simple cash transfers put money in the people’s pockets for them to spend as they choose.”
From
https://paultan.org/2022/08/29/indonesia-may-raise-its-fuel-prices-by-30-trim-subsidy/
While I agree that subsidies should eventually be removed,I hope the ministry is prepared to overcome the consequences of it especially on price hike on goods, drop in revenue from automotive sales etc2…
As for consumers, EV’s will probably be the best solution if they are not eligible for the fuel subsidy.
RM1.5B wages increments for 2023 government servants is NOT FREE…it is time to pay back soon
But t private sector never include in t income increment….it not far 4 other people around!!!
“The need for Malaysian to move away from blanket fuel subsidy is clear. The T20 group, which is the top 20% of earners in the country, is enjoying some RM8 billion in fuel subsidies compared to the RM6 billion enjoyed by the bottom 40% (B40). This was revealed by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in July.”
This coming from people that his petrol allowance is paid mostly by the “rich” Malaysians.
Do you expect ministers to work for a pittance and survive on side income from contracts, gifts, and favours? Come on! There is a reason why SG PM is the highest paid leader IN . THE . WORLD.
Get ready for multifold price increase in our daily necessities.
Don’t lah.. other things will rise… that time the gov have to subsidies other things too.
how about M40?
forgotten child again?
T20 B40 enjoy… while M40 suffer?
https://paultan.org/2022/04/26/govt-to-implement-targeted-fuel-subsidy-for-b40-to-replace-current-blanket-a-matter-of-time-mustapa/
It already said that B40 will enjoy fuel subsidy but T20 and M40 will not
The right question to ask is are we ready to pay rm6 for a loaf of gardenia!
My organisation has also begun its study on ensuring our bottom line is not impacted from rising fuel costs. Need to ensure that we pass 100% of the cost to the public. In the end who wins?
they won’t have the chance to implement such policy when they are changed from administering this nation
INSYALLAH BRADERRR
BN take, gives back 60%
PH take, gives back 10%
Rakyat Malaysia should choose wisely mana mau pilih.
#BetterBetterNation
Still looking for the tongkat
Pple switching to EV or hi tec lowest fuel consumption cars ,so this subsidy garbage issue is wastes of time to discuss ,at end it all continue to subsidise bez of save vote bank
A lousy cook should not try to make soup.
https://youtu.be/g5CaIuOsb0A
Thats why..
“Malaysia vs Singapore,
Why it’s harder for Malaysian to raise a Kid.”
Habisla M40/T20 gaji RM11.9k/RM6k per parent
Mau Bawa anak, grandparents pun susah.
Of course, B40 Bawa anak lagi susah. No doubt.
Please Please Please Don’t Remove Subsidies For Diesel. DIESEL IS MORE IMPORTANT FOR COMMERICAL, Industries, Carrying Cars and others
yes finally we can pay market price without subsidy
This will only hurt the M40. M40 is really starting to feel like a scam. Better bai lan.
Did you think government have enough money for continue fuel subsidies for M40 and also for T20?
https://paultan.org/2022/04/26/govt-to-implement-targeted-fuel-subsidy-for-b40-to-replace-current-blanket-a-matter-of-time-mustapa/
Do consideration by removing fuel subsidies and while making taxes for turbo petrol cars, except for turbo diesel cars.
Turbo petrol cars is expensive to maintain and also for maintenance cost and mainly for rich income group. NA Petrol Engine cars are more cheaper plus maintenance cost is also cheaper and mainly for lower and middle income group. Turbo petrol cars performance is greater but can causes huge problems for reliability while NA petrol Engine cars performance is not as good as turbo petrol cars but performance for NA petrol engine cars is good enough and don’t need big performance.
Hybrid petrol cars is also still needed and benefits for fuel economy and lesser carbon emissions than turbo petrol cars.
Turbo diesel engine cars like pick up trucks that is Hilux and D-Max are needed because of logistics, industries, logging and others
Petrol increase… business give excuse increase more…price of items will go up… inflation naik…gaji tak naik because excuse employer not making money everything go up … recession… B40, M40 no more and all become B80… T20 become T05… geng!
U got some problem with u math there…
His prediction could be happend..what’s related with math..hahaha
But will you let those cannot use subsided fuel buy car without those high tax? Even just one car at Langkawi / labuan price.
I know the answer, Nah screw u all
They have been talking sbout this since time of badawi. Its already 15 years.
quoting my nephew, “are you krazy?”
T20 paid the most tax and not even enjoy single subsidy for most of the time. why the MOF not mention 80% of taxes are came from T20. while M40/B40 just contribute the 20% of taxes.
if you don’t fit your job, give chance to others. backdoor MOF
useless incompetent minister. Now, join umno for $$$$$$
Why not increase income tax for T20 by certain percentage to recoup what is claimed to be given to them? I think 1% increase will generate 8 billion back, if not 2% increase. M40, B40 not affected. If subsidies are taken away, we are like asking those B40 not to travel at all, even public transport fare will increase, Grab price will shoot up, not to mention other necessities going up. M40 has to change to lower cc cars, or even have to think of travelling on bikes.
For targeted fuel subsidy, B40 won’t affected but M40 will be affected together with T20
https://paultan.org/2022/04/26/govt-to-implement-targeted-fuel-subsidy-for-b40-to-replace-current-blanket-a-matter-of-time-mustapa/
Not much thought and study is given to this.It will be a chain reaction the rayat will have to bear it.
Yes. M40 is needed but not all of M40 but some
Start from today, all companies top sales can stop working, let the worst sales do all the job.
When there’s change there’s also opportunity:
“Hi B40 here. Any T20 want to use my account to buy petrol at cheaper price?”
“So you’re telling me I’m limited to only X litres/RMX subsidy? Nvm I still got brothers and sisters that can tumpang account!”
“What? The subsidy is only for me and on my registered vehicle? Ok, you know any YouTube videos on how to Syphon petrol from a car?”
Stay tuned for PRDM vs Petrol Cartel on Gerak Khas, only on TV3.
Menteri bodoh, if all of us do not need to pay tax, u can choose not to subsidize T20 and continue to subsidize your baby. But now, you are taking my hard earned money paying ad income tax to subsidize your baby. BODOH!!!
Betul, bodoh punya minteri..
T20 bayar tax …banyak weh…
Itu pun x cukup cukup..dok potong potong lagi..jilaker betul
T20 pay Tax, B40 don’t pay Tax
You must also took into consideration that T2O is paying more tax compare to B20..
The majority of the usage is for goods transportation. Hopefully those are still subsidized…
Is there any need in envy as to who benefits more and these very people are those who contributed the most to government revenue.. such plan in targeted group will surely end in misery to the whole population.. run away inflation can be guaranteed.. is the government facing balance of payment and bankruptcy with 30billions forgo for normalcy in our daily lives? Will this money collected able to make drastic change to our lives.. most likely all will be wasted in unsustainable projects or irrelevant services. Try instead, reduce number in government services and cabinet.. stop free fuel vouchers for government servants and ministers.. much more can be saved by reducing and pay more attention to corruption. The billions in blanket fuel subsidiary is well spent and the return is enormous both to Malaysians and the country.
There’s one huge issue with the caterilization of income group. RM11,000 household income, and you are T20.
If your household income is RM11,000, living in klang Valley, with 5 mouths to feed. You hardly have any spending power left.
Even worse, gov consider you as T20 and remove your subsidy.
i pay around 1.8k for tax every month.. yet no petrol subsidy? So wat happen to our Oil & Gas revenue? Better transform ourself to B40.. no tax and can claim so many BANTUAN & SUBSIDY after this…aiyoo
Remove free fuel for ministers also..not all of them are use it for working purpose..let all of us fueling with non subsidy petrol and be fair to rakyat who paying tax
Focus with corruption and doubtful expenses to mega project, ur gov can safe tax payers money. Attract more investors to come in to Malaysia instead and remove unnecessary rules for investors to follow in order to protect some community
i pay around 1.8k for tax every month.. yet no petrol subsidy? So wat happen to our Oil & Gas revenue? Better transform ourself to B40.. no tax and can claim so many BANTUAN & SUBSIDY after this…aiyoo
Most tax dollars are coming from the T20. I think this decision will not go down well with most Malaysian
Dear gov, if your want to revoke petrol subsidies, please revoke also car unnecessary tax on car.
It is time to introduce lower RON into the market. Most cars can run on lower RON.
Im not sure why the government only concerned about B40 and T20. What about M40, i think better only T20 will not given subsidy by the government.
Before answer your question, tell me how much tax you paid per years?
you think T20 money come from the sky?
some T20 paying tax is more than what you earn for 1 full year. but still no enjoying any subsidy from government.