RHB Investment Bank (RHB IB) expects that more details on subsidy rationalisation for RON 95 petrol, as well as on the reintroduction of the goods and services tax (GST) will be revealed in the 2025 Budget that will be tabled on October 18, Bernama has reported.
The investment bank expects RON 95 petrol subsidy rationalisation to take place towards the end of this year, according to the report. At present, the RON 95 grade of petrol retails at its ceiling price of RM2.05 per litre, an upper limit that was set by the Malaysian government in February 2021.
“Despite some progress on reforms, we believe the government still has ample political capital to make further meaningful progress on subsidies and initiatives to broaden the tax base to narrow the fiscal deficit further, create headroom for infrastructure investments, and establish a pathway to contain the national debt,” said analyst Alexander Chia.
“In this regard, the two key pending initiatives are subsidy rationalisation for RON95 petrol and reviving the GST that will dovetail with full implementation of e-Invoicing,” Chia said.
The fuel subsidy rationalisation programme in Malaysia began June 10 for diesel fuel this year in Peninsular Malaysia, which saw a hike of RM1.20 to RM3.35 per litre from that date. Following several price adjustments, diesel dropped to RM2.95 per litre last week, with no change for the coming week. The retail price of diesel fuel in Sabah, Sarawak and Labuan remains unchanged at RM2.15 per litre.
While the removal of subsidy for RON 95 petrol has been previously said to take place this year, economy minister Rafizi Ramli said in June that the government is still studying the removal of RON 95 subsidy. As of today (September 26), the price of unsubsidised RON 95 petrol in Malaysia is RM2.81 per litre, according to unsubsidised fuel outlet Double.
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Anwar menang rakyat senang
Janji PH tetap dicapati. Cilka PH Phui! Anwar & Pizi sila jawab!
Start diesel removal FIRST at East Msia, before talking RON95 topic… Should implement to whole country, not because of MP seats support and pressure from East Msia states..
Rafizi n Co..I dare u…A day after budget day…pls jack up Ron 95 price to Rm3.50/litre.
See whether rakyat accept or give u a tsunami backlash.If huge backlash until one of your coalition partners quit Madani govt..GE16 is not very far away.
Dont mess with voters,by giving “surprises”.Rakyat is better prepared this time.
We r fed up with surprises.We just want food on our table.
Refer my name
Sg Bakap voters have done their job.
Bandar Mahkota voters! It is your turn to send Madani a strong message by voting them out!!!!
Dont mess with our subsidies!!!!
Thought it was the Asmin fella who talks about subsidising BMW and Kancil comparison show who will not mess with subsidies.
While i do see the sense in removing RON95 blanket subsidy, historically speaking, every PM that did this before got ousted.
Tun Abdullah, DS Najib and potentially even PMX?
this move will not get him ousted, the e-invoice move on SMEs will
I’m all in for blanket subsidy removal BUT only if the targeted subsidy reach the right household (those low income earners). Hope there’s no loop hole for those B to abuse.
If removing subsidy they should remove AP also, impossible we buy expensive car with expensive petrol
Removal of subsidies harm the poor.
Removal of AP only benefits the rich.
Keep the AP, keep the subsidies!
You want to remove fuel subsidy, pls do it yesterday. But dont do a half-ass job by protecting sabah n sarawak. You think folks in peninsular are idiot or what? We pay income tax as too.
Why rhb spreading misinformation to public what is the motive?
Will Sabah and Sarawak be part of this, or it’s a special case again?
Before that just dont forget that ” Malaysia ni negara pengeluar minyak” said Rafizi before become menteli.