Wee suggests fuel subsidy eligibility based on car type, not income

Wee suggests fuel subsidy eligibility based on car type, not income

MCA president Wee Ka Siong says those who drive luxury cars do not need the RON95 petrol subsidies at all.

wee ka siong
MCA president Wee Ka Siong said the M40 income group who are ‘ambitious’ and drive luxury cars should not be given fuel subsidies.
PETALING JAYA:
MCA president Wee Ka Siong has called for the government to consider the eligibility for the targeted RON95 fuel subsidy based on the type and value of cars driven instead of the income earned.

He said, for example, drivers of Perodua Myvi, Ativa, or Alza cars should be entitled to receive a full government subsidy for the RON95 petrol.

“However, those who drive Mercedes, BMW, Ferrari or Lamborghini do not need the subsidy at all,” he said in a video posted on TikTok.

He added that those who fall under the M40 income group but prefer to drive luxury cars should also not be given any fuel subsidy.

Wee added that the government should not punish those who practise moderation in their daily lives and are not reckless with their spending.

Last week, economy minister Rafizi Ramli said the targeted subsidy programme for RON95 petrol, that is to be introduced in the middle of next year, will not be solely based on household income.

He said the targeted subsidy programme will take other factors into consideration. However, he did not elaborate on what are these other factors.

Rafizi was responding to a question on whether those in the T15 income group would no longer be eligible for the RON95 subsidy.

This T15 category is a new classification referring to the top 15% of households earning a total income of around RM13,000 or more per month. The amount varies, depending on the state they are residing in.

When tabling the 2025 budget on Oct 18, Prime Minister Anwar Ibrahim said the government spent RM20 billion last year on blanket subsidies for RON95 petrol. He said the government expected to save RM8 billion through the targeted subsidy.

In 2008, the Abdullah Ahmad Badawi administration introduced a direct cash rebate programme where Malaysians with vehicles below a certain engine capacity were eligible for annual cash rebates to offset fuel costs. This approach aimed to provide relief to low- and middle-income households while keeping subsidies more targeted.

However, the programme was eventually scrapped in 2016 as part of the Najib Razak-led government’s move to abolish fuel subsidies altogether to manage financial constraints better and redirect resources toward other social welfare programmes.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.