Part of the M40 group may be cut off from the targeted fuel subsidy that is being planned for introduction by the government, which would reduce their spending power, said Kenanga Research.
In a sector update report issued on Wednesday, the research arm of Kenanga Investment Bank anticipated that the upcoming targeted fuel subsidy will be unveiled during the tabling of Budget 2024 on October 13. It added that the new mechanism, which is expected to replace the existing blanket fuel subsidy, is likely to come into effect at the start of 2024.
It said the move is largely motivated by the unsustainable financial burden of the current existing blanket fuel subsidy setup, where a considerable 35% of the RM77.3 billion subsidy in 2022 that was utilised for fuel subsidies benefitted the wealthier T20 group.
Utilising the Pangkalan Data Utama (PADU) socio-economic database, which will integrates data from various government agencies including the inland revenue board (LHDN) and the road transport department (JPJ), the government aims to identify recipients using a ‘net disposable income’ criterion, intending to largely exclude the T20 demographic, the research arm stated.
Despite this, Kenanga Research believes that a large part of the M40 group will likely still be inadvertently excluded from the targeted fuel subsidy system, possibly resulting in lower disposable income and reduced spending power for the group.
However, it added that the B40 group will continue to fully enjoy subsidised fuel, and as such would not encounter any erosion in spending power. “Additionally, the group will continue to receive financial assistance from the government, including cash handouts,” the research arm added.
The timeframe for the planned implementation of the targeted subsidy programme mirrors that stated by economy minister Rafizi Ramli, who said the government is expecting to have it in place by early next year.
The mechanism of the programme itself has not been detailed, but the government says it is exploring various ways to implement targeted subsidies, including an ID system and, most recently, using the MySejahtera application.
Of course, it remains to be seen how effective the targeted policy will be, and whether say, traders and those in small-to-medium businesses will be covered by the mechanism. The bigger picture is how any rise in the price of goods and services – which could potentially come about and impact all income groups, including the M40 and B40 – can be staved off. The answers, in due course.
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Honest question here – how do they determine that 35% of the fuel subsidy went to T20 in 2022? There is absolutely zero data collection at the point of sale, i.e. at the fuel pump. I can only assume that they used data of total cars in operation and sorted randomly by engine cc or model and drew a line at what they thought T20s would drive. Then they estimated the average KM travelled in a year and multiplied that with the fuel usage. I hope I’m wrong with this assumption and they actually used a more scientific method of determining T20 fuel consumption.
Rezeki diberi Tuhan
Kita rajin kita dpt
Kita x perlu subsidi
Kita hanya sokong PN
PN x bagi ape2 pon xpe
Asalkan pintu ke syurga
Orrg bodow jaa pi sembah pnpas. Kikikih
Uncle jutawan bersara rumah 5 buah
bulan2 kutip sewa x sumbang LHDN
Kereta dia dpt subsidi minyak ke?
supo Tun M n former MB kelantan. all retiree shud get.. becuz dey r Warga emas
how dare you doubt rapizi formula
RON95 petrol in Arab saudi selling for RM2.92/l walaonbodo mana tahu.. Lolz
The price of everything will go up. That’s what PH voters want, hahaha.
Wow statement from Carabao brain thought that there so powerful can influence inflation globally
Wow Stupid idiot like you can talk anything.
The gomen have hefty fuel subsidy to fishermen. End result, they sell diesel smugglers and earn more than fishing.
Gomen can easily issue debit card to B40 limit RM100/ month for fuel or RM150/ month. Or more if they think it’s fair.
Anwar menang rakyat senang
Refer my name
Refer to Restoran Jai Hind lah
Padan muka to all PH voters. Serve them right!
Rezeki diberi Tuhan
Kita rajin kita dpt
Kita x perlu subsidi
Kita hanya sokong PN
PN x bagi ape2 pon xpe
Asalkan pintu ke syurga
LOLs yeaa oppos try hard. if gang PN tax the rich, Screw the poors… PN hanya layak jdi oppos
Last year, abah told the press that the government can save RM20 billion a year by implementing the targeted subsidy scheme, because only 20 per cent of the subsidy provided by the government was taken up by the B40 group, while the rest was enjoyed by groups which did not deserve it, resulting in almost 50 per cent of government subsidies being used by people in the well-to-do category.
i wonder why upper income level should not benefit from the petrol subsidy. We all aware the tax gain by government Malaysia are contribute by the M and T level, but why M level & T level group could not enjoy petrol subsidy which is the fiction of their tax contribution yearly.
Because M and T people can afford it.
As an M40, I’d agree more if the government fully lift the fuel subsidies. Everyone get to pay the full price of owning a vehicle. If unable to afford, please support yourselves by using public transport, while supporting the government to push for better public transportation.
You’re evil person. Tax the rich, help the poor.
the gov encourage ppl to become b40
This is all what PH voters want. GST, targeted subsidies, and corrupt politicians in cabinet. Just accept that without arguing with me.
Rezeki diberi Tuhan
Kita rajin kita dpt
Kita x perlu subsidi
Kita hanya sokong PN
PN x bagi ape2 pon xpe
Asalkan pintu ke syurga
Bring back GST.. bring bck jibby. Hidopp UMNO
Yes, this is what we want. No need to post in every article.
Just ignore the idiot!
At the time of GE15 late last year, the government debt & liabilities was already heading towards RM1.5 trillion. With the country’s population of 30 million plus, that would be about RM50k debt for each citizen. Unfortunately, there is among some of the rakyat who have the childish mentality that the govt debt has nothing to do with them & thus continue to expect handouts from the govt.
Yes, agree with you, many rakyat thought it is easy to manage a 60 year huge debt country
That’s why city area support new government while rural area only keep their 20th century mindset
Better you form the new government, I support you, please give me free lunch free house, 100% support you
Just get rid of the subsidy and direct cash transfer to the rakyat.Singapore is even doing cash payouts if they can do it we also can.
refer my name
Exactly. Just remove blanket subsidy and channel aid through proper pathways like BR1M, so no one can game the system.
bro, BR1M been game a long time ago already …remember when they still gave the cash by handout the ones who came drives honda,toyota etc..meanwhile M40 like me who’s not eligible still drives old wira to work.. imagine now days direct to bank how much money lost to these parasite. too many people declare they are b40 when they are actually richer than most m40. most of these people doesn’t declare their money nor keep it in the bank so they couldn’t get audited by irb
BODOH, DIRECT CASH = NO PROJECT, NO PROJECT = NO KANGTAO, U TOO BODOH IF U DONT UNDRSTAND THIS
THE WAY YOU TALK ALREADY PROVED THAT YOU ARE THE BIGGEST BODOH. ANYWAY I AM SURE YOU DON’T GET IT BODOH!
jangan risau jangan bimbang…nanti ada express/privilege lane untuk yang tak dapat subsidi petroleum di setiap stesyen minyak …ekekekekekekekeke
Padan muka to all PH voters. Serve them right!
Tax the rich, help the poor
So you either be B40 or T20… dont be in between, this will encourage people to be more as B40
B40 park their old run down cars at the roadside and burn the subsidised petrol emitting toxic fume while enjoying aircond and play handphone in the car. In the meantime the higher income taxpayer are working hard in the office, paying more for petrol and electric and they are encouraged to change to electric vehicles for cleaner air. When brains are occupied with votes, there is no room for logic.
Sounds like someone coming from a privileged family and used cable to get into a huge corporate company.
Or corrupt ministers
u can see a lot of B40 buy Toyota and Honda while staying in PPR flats. they cause themselves being poor.
Most of them work as private drivers for large corporations. Not really their own vehicles.
Most companies prefer their company vehicles to be parked at their premises, not at their employees’ homes.
Those can afford Toyota Honda M20 (41%-60%) la
Yes , please subsidies those mat rempit, so that they can rempit more and more
Don’t be jealous.
All T20 and M40 can turn back to B40 group. Earn higher due to hard work will be taxed. Why work so hard when we can enjoy the subsidy by laying low….What kind of formula is this in this advancing country.
Kind of agreed on ur statement. Y strive hard & contribute and not rewarded? Better just lepak with low productivity and bcome b40 to enjoy free things & subsidy. Where is the logic???
Pass on higher personal expenses like fuel costs to consumers to maintain profit margin. The rich ain’t dumb. Tq B40. The vicious cycle continues….
Just sack the redundant government servants! My company applied for tax exemption from MIDA. They sent over 5 staff. It was 6 if included the driver. They just visited the factory fast and do not even wanted to visit the warehouse. They arrived at 4pm and wanted to rush back to avoid traffic congestion. For me, 2 person is more than enough!!!
Poor PH / BN voters, vote PH get GST, Increase Cost of Living, No Subsidy, Corrupt TPM and the joke is majority who voted PH will not receive subsidy !!!
Cut off all The subsidy and the RM will start to strengthen. The money saved will Be used to cut gomen deficit. RM80 bil a year just for fuel subsidy alone is no joke.
Please look at Foreign workers & expatriate & others non Malaysians who are enjoying the subsidiary given by government.
Not just petrol, please look at other areas where Foreigners are enjoying the benefits given by the government eg food, rice, sugar, entertainment areas, cinema, alcohol, pubs & so on…. please look at this areas
where is the logic, tax is for everyone and yet t20 and M40 (white collar) pay the most here and yet we don’t enjoy subsidies. if not mistaken b40 not paying any taxes. someone correct me if I am wrong. really wtf, most people think all t20 are millionaire.
ini sekejap mau subsidisi sekejap tak mau…sekejap mau gst sekejap tak mau….like that fark big time la…all business will take the opportunity to increase price everytime changing/flip flop here and there..sudah naik kasi naik lagi dan takmau turun….pigi mati la all bullshit fark