The Malaysian government hopes that its targeted fuel subsidy initiative will lead more Malaysians to look to renewable energy for their consumption, natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad said, reported FMT.
The public would rely on petrol and diesel fuels prior to the implementation of targeted subsidies because fuels are cheap, and the reliance on fossil fuels is something the government wants to reduce with the help of renewable energy options which “are more attractive”, the minister said to FMT.
The minister said he hopes that the removal of subsidies for RON 95 petrol and diesel would encourage the more affluent among Malaysians to purchase electric vehicles as a way to manage the cost of higher fuel prices. Getting Malaysians to opt for renewable energy and switch to EVs will help with the country’s decarbonisation journey, he said.
“By purely not subsidising fossil fuels any more, we can see the transition happening. I think that’s the easiest thing,” Nik Nazmi said. FMT cited a recent global study that found renewable energy now costs less than fossil fuels in the Asia-Pacific region, and solar energy is the least expensive source of power in the region, while fossil fuels will continue to become more expensive.
The targeted subsidy initiative was not an easy decision to make in view of political repercussions, said Nik Nazmi, who chairs the national decarbonisation committee. The targeted subsidies initiative for RON 95 petrol set to take effect later this year presents “a whole different ballgame”, and understands that the subject is a sensitive issue, he said.
Citing excerpts from his book as an example, Nik Nazmi said the backlash faced by London mayor Sadiq Khan following his expansion of the ultra-low emission zone (ULEZ) policy in the British capital indicated that the Malaysian government has to handle the targeted fuel subsidy initiative well to avoid political backlash.
“I might lose my job, and, I mean, the government might just lose power, and then the next government might say it’s not worth doing it,” Nik Nazmi said. “It’s good for the country’s treasury. It’s good for the environment and I think it’s the right transition that we want to pursue,” he continued.
Last week, economy minister Rafizi Ramli said that the subsidy eligibility criteria and the mechanism should be announced in a few weeks’ time. This is set to transition the eligibity criteria from the present income demographics – as marked by the B40, M40 and T20 segments – to net disposable income, Rafizi said.
At the tabling of Budget 2025 last October, prime minister Datuk Seri Anwar Ibrahim – who is also finance minister – announced that the targeted RON 95 subsidy would see the top 15% of earners (T15) pay more for petrol, and that 85% of the Malaysian population would continue to receive the fuel subsidy. The prime minister has since walked back on his T15 definition, saying that neither the income cut off point nor the percentage itself is final.
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What steps taken to ensure the rakyat more attracted to new energy vehicles? For starter, make sure that our infrastructures ready for he new energy vehicles. Secondly, make sure the vehicles are affordable regardless local or non local brand. Provide industry players with good reason to do business locally ie provide equal tax with the local brands etc.
In the first place this BS. Whats renewable energy got to do with petrol usage? Does Nazmi expect us to start strapping solar panels onto our cars? Or heaving up a hydrogen tank on the car roof? Nonsense from this no-sense mentri! Know how to talk dunno how to work, like the whole PH Govt. All useless!
We need to convert and installs solar panels onto our vehicle car roof. Any dealer provides this service?
Alasan bodoh menjadi lumrah oleh mana2 menteri pasola ketika ini…
Rata2 kereta elektrik menggunakan tayar berharga rm1000 ke atas sebiji yang mana tayar kereta elektrik ini adalah cepat kehilangan bunga berbanding tayar kereta petrol.
Dan adakah penggunaan elektrik juga murah sekarang?
Xpeng SUV 22 inch tyre rm2500/piece, tesla 18 inch tyre rm1200/piece.
To all the PH mentris that still not shut their yap, janji above mana?!
Getting Malaysians to opt for renewable energy and switch to EVs.
Well Google says 43% of Malaysia’s electricity in 2023, compared to natural gas at 36% and hydropower at nearly 17%.
So how much is Malaysia’s electricity comes from renewable energy and if everyone moves into EVs 80% of which also comes from fossil fuel so…..?
Also we know every political strategy once EVs adoption is higher there is bound to be price increase for electricity so win-win for Tenaga, EVs, Government and cronies.
Wishful thinking but even if significant rise of EV vehicles will not put a dent war towards climate change when the source of energy generation is still coal. What you’re doing is just transfer carbon from left to right pocket
wish to see higher efficiency solar roof tile that comes with good water tight design + good Fire barrier package.
What i see now only have 1 option: Solar Panel loading onto the existing deck.
and of course it will be better to get locked in maintenance package to ensure all these high Voltage/high Watt Solar Panel are under well care.
both the Roi and Safety is very important.
China seem to have mandate EV car >6 years bi-annual authority inspection.
yea yea use renewable energy because already PLP to help clear CHINA stock… electric also come from coal majority in malaysia.. renewable energy my kok
dia punya cita cita macam semua orang ada elaun petrol dan kenderaan…
Thanks minister for mind blowing highlights.
Wait…what is the renewable fuel / energy that we are offered in Malaysia?
Besides fuels from the stations, our power grid is driven as high as 70% as majority source of electricity generation by the diesel generator in Malaysia.
Unless, there is a solar with substantial size and storage at home to power the EV, otherwise, how do Malaysians are able to move on to the so called your green?
Then… Malaysia largest almost single power vendor, TNB, in plan to raise the traffic soon…what is then left for Malaysians?
Cheers
how ah, can i install a wind farm at my house ah
Extend the EV car tax exemption until end of Dec 2026. Provide option to choose the EV below RM100k 400km WLTP to encourage more people to adopt EV. Give more incentives to citizens who put solar panels at home. Expedite install of public chargers especially DC chargers with at least speed ot 120kw and above.
People more willing to take EV when they find it worth to do so. By then remove subsidy of RON95 will makes less noise. Again the target of remove fuel subsidy is on T15 and most of people here ain’t at this level. Why should they bash on this article?
“I might lose my job, and, I mean, the government might just lose power, and then the next government might say it’s not worth doing it,”
this is an honest statement, the current regime are making all the hard decisions, taking risk at every steps, but someone has to, it depends on how much bullet PMX is willing to take. when you took things too far, like emmanuel macron did, you may not come back at all.
Another gorilla in action now,they think we r orang kampong
His face though
Muka macam baru bangun dari tido. Maybe thats what he been doing. Wake up once in a while to make this stupid statement.
Lets pay mire income tax to get less subsidy to help the government,
Unsubsidised RON95 is about RM 2.80. It is only about RM 0.75 more than subsidised fuel. For rich people car usually 70 litre fuel tank, it is extra RM 52.50 and 4 times a month is only RM 210. To be honest even this amount even if apply to normal B40 and M40 this amount isn’t huge or crazy burden if the person is driving a car valued at RM 70k and above. Argue B40 cannot afford a RM 70k value car? Do you know there are many people who buy Ativa and Alza their earning are actually less than RM 4k. And monthly repayment is about RM800, I do not believe additional RM 120 (40L x RM 0.75 x 4 times a month) of fuel will give them burden till they can’t survive.
It will only cause people to cut down on other things.
Look at the diesel subsidy removal. More lorry companies are cutting down to low quality and rethreaded tyres.
Your statement is wrong. Almost all commercial lorries are still enjoying subsidized diesel. The retreaded tyres problem mostly because of “overweight” and also company trying to fill as much as they can when the driver is available. If we have enough manpower to drive lorries then the problem of truck breakdown or accident at least drop more than half. Many drivers are being incentivized to make more trips because companies hardly get drivers to work.
Try go and ask ANY logistic companies in Malaysia, almost all companies are hiring drivers all years long. Low salary? A long haul driver can earn up to 7k-10k, short haul also can take home 3k-5k. Driver is only responsible for driving, they do not need to do heavy work like load and unload the product. If they require to drive and help loading items they will get extra pay. The benefit of driver is NOT BAD AT ALL. If local people don’t want to do then gov should open up driver vacancies to foreigner. Many Nepal or Myanmar people willing to take lower salary and work hard because their purpose to come Malaysia is to earn money.
Which lorries are using subsidised diesel? Where to get it at the petrol stations hah?
You mean lorries carrying construction materials are getting subsidy? Like lorries transporting machinery? Bricks? cements? Sands? What about mesh steels? or steel sheets? What about auto parts?
How much subsidies are they getting now vs before the removal?
suka hati je dia guna term renewable energy itu, macam lah banyak pilihan kita ada.
By July 2025, electricity tariffs will be increase by 14.5%. tell me how is that increase is an effort for Malaysians to move to EV?