Targeted fuel subsidy expected to be included in revised Budget 2023 set to be tabled on February 24

Targeted fuel subsidy expected to be included in revised Budget 2023 set to be tabled on February 24

According to a report by The Edge, a targeted fuel subsidy is expected to be included in the revised Budget 2023, which will be tabled in the Dewan Rakyat next month on February 24 by finance minister and prime minister Datuk Seri Anwar Ibrahim.

The matter of targeted subsidies has been brought up on numerous occasions over the years. Last November, Anwar revealed that relevant government ministries have been given time to explore the impact of such a move.

RHB Research group chief economist and head of market research Sailesh K Jha told the publication that Malaysia is predicted to maintain a strong business cycle and see a decrease in core consumer price index (CPI) inflation in the first half of this year. Additionally, commodity prices are expected to remain steady in 1H2023 as the global economy slows.

“Our view is that the re-opening of China is unlikely to have a significant impact on economic activity in the giant economy and global growth in 1H2023, the timing is appropriate for a reduction in fuel subsidies to be announced on February 24,” he said.

On another finance-related note, RHB Research is keeping to its view that the overnight policy rate (OPR) will peak at between 3.0-3.5% in 2023, with the balance of risks at 3-3.25%. “The uncertainty around our OPR forecasts stems from the timing, quantum, and scope of the targeted fuel price adjustment,” Sailesh expalined.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Menteri Formula Kantoi Terlupa Formula on Jan 26, 2023 at 4:13 pm

    We got the best Minister in the world. We should put trust on him. Because he got so many powerful formula to reduce toll prices, foods, petrol bla bla… More to come!

    Like or Dislike: Thumb up 23 Thumb down 3
    • Tiber on Jan 27, 2023 at 12:17 pm

      Yg diturunkan speedlimit…

      Like or Dislike: Thumb up 4 Thumb down 0
      • Civic Turbo 2018 on Jan 29, 2023 at 10:09 am

        Tough call… Country debt climbed 50% during 2020-2022 tengkiu MOO. Lucky RM vs USD,SGD stronger after under Anwar

        Like or Dislike: Thumb up 0 Thumb down 0
    • hazri on Jan 30, 2023 at 5:17 pm

      from 1 usd = rm4.70 to 1 usd = rm4.20 just in 1 month. something previous gov cant do in 33 months. now we get the best government ever. more to come!

      Like or Dislike: Thumb up 1 Thumb down 0
  • Fuel Hike....A Clear and Present Danger on Jan 26, 2023 at 8:03 pm

    If B40 only pays subsidised fuel,fine.
    What is the mode of execution at all petrol stations?
    A.Bangla look at your ‘special card” to pump rm2.05/litre.
    B.U go to counter to verify your eligibility.
    C.U have to get a retina scan at the particular pump,to be verified as eligible(Like the one eye jack senior to Captain America).
    Then,the next question is ‘what about the ripple effects from the transporters? ”
    Now inflation is sky high.Once the transporters up the charges…can u imagine how many of your necessities r spiralling out of reach?
    Fuel subsidies,will no doubt be weaponised by the opposition to score points,which might even be regime toppling if PM Anwar is not careful.
    Rakyat is still not out of the woods yet due to the virus.It is too soon to “shock” the motorists with a fuel hike now.

    Like or Dislike: Thumb up 6 Thumb down 4
    • Sigh... on Jan 27, 2023 at 12:08 pm

      Brother, no need subsidies, make it open market. So that the petrol dealer can fight for it.

      For B40, pls study & work hard, don’t merengek all the tongkat from the gov.

      Like or Dislike: Thumb up 10 Thumb down 0
      • Elon Fanboi on Jan 28, 2023 at 11:26 am

        Tax the rich, help the poor

        Like or Dislike: Thumb up 2 Thumb down 4
        • Sohai on Jan 29, 2023 at 9:44 am

          Tax the rich at the point of earnings.
          But never at the point of consumption, otherwise a different pricing system of goods for different class of people will cause distortion in the market, is to mention is a nightmare to implement.

          Like or Dislike: Thumb up 1 Thumb down 0
    • funny on Jan 27, 2023 at 2:51 pm

      think so much.. apa also no need do lor govt… give u free money easier ..

      Like or Dislike: Thumb up 0 Thumb down 0
  • Arteu32 on Jan 27, 2023 at 3:54 am

    So when its time to fuel up, gonna bring along my 75 year old father in law and use his i.c.

    Like or Dislike: Thumb up 2 Thumb down 0
    • Undi PH dapat Zahid on Jan 28, 2023 at 11:25 am

      You’re more clever than Rafizi.

      Like or Dislike: Thumb up 2 Thumb down 1
    • hazri on Jan 30, 2023 at 5:03 pm

      wait until you have to thumbprint to verified. not so clever la, stupido than walaun.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Government still unable to give a detailed plan on how to really implement this system.

    My questions:
    1) Should we limit the amount of petrol monthly for those entitled?
    2) Should we limit car price that M40 can buy? Some M40 may still drive old Kancil while some B40 buy Vios or City.
    3) B40 or M40 is household income, not individual income. Can B40 income link to spouse? How about B40 salary increases beyond the limit or children of old B40 couple grow up and able to earn money and yet still stay under the same roof?
    4) How about M40 families, where either husband or wife lost their job and become B40?
    5) How to link their current income with the bonus. Bonus is recognised as part of income and only distributed at the end of year. How should Government capture it? Some workers may have low salary but with high bonus. I mean for those at the limit border. As I know previously, the lowest level operators in Perodua factory can have as high as 7 monthly bonus!

    Like or Dislike: Thumb up 0 Thumb down 0
  • virus on Jan 28, 2023 at 11:38 am

    Abolish the fuel subsidy and also the sky high car taxes….currently the fuel subsidy is actually being financed by car buyers through high car duty & taxes. Open market for fuel must come wt open market for car prices!

    Like or Dislike: Thumb up 3 Thumb down 0
  • Robinhood on Jan 30, 2023 at 11:05 am

    All these lazy bums which have been too voted in only know how to look for shortcuts by reducing benefit for the rakyat. Can’t this PM find ways to reduce leakages especially corruption, wastage, income tax leakages etc. Only know how to talk! How many millionaires have not been paying income tax or escaping them??? Just look into your cabinet and you will find a dozen of them if you are serious about what you are preaching!!!!

    Like or Dislike: Thumb up 2 Thumb down 0
  • Abolishing Petrol Subsidy is for the Stupids on Feb 20, 2023 at 11:58 am

    Am I the only one who thinks tax is a form of legalised theft? Just because you’re B40 you forever want to be stuck in the victim mindset doesnt mean that there’s no some real hardworking people who want to climb their way up to T20 from B40 and still enjoy the benefits every Malaysians should enjoy.

    The illusion of tax the rich to help the poor is as asinine as clearing your house flood water by pouring the water outside of your paggar with opened holes. It’s only a tactic used by politicians to manipulate you broke people mindset so that they get more power. Wake up please.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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