Malaysia could narrow petrol subsidy cuts to the T15 group
According to BERNAMA, Malaysia’s petrol subsidy changes could soon focus on the T15 income group instead of the wider T20 category, according to several local experts. The suggestion comes as the government continues reviewing its targeted fuel subsidy plans.
The current system might no longer be relevant
For your information, experts said the current B40, M40 and T20 system may no longer fully reflect the real cost of living in different parts of Malaysia. They believe factors like location, household size and monthly expenses should also be considered when deciding who qualifies for fuel subsidies.
Moreover, economist Prof Dr Barjoyai Bardai said households earning the same income can still face very different living costs depending on where they live. Because of this, he suggested a more detailed system instead of relying only on salary figures.
Another proposal includes reducing the affected high-income group from T20 to T15. Experts also suggested using data from PADU and the Inland Revenue Board to help improve the accuracy of the subsidy system.
Besides that, the discussion also shows how Malaysia is relying more on digital systems and databases to manage large government policies. However, consumer groups warned that inaccurate data could cause some people to miss out unfairly. Some experts also proposed other ideas, including limiting subsidised petrol purchases to a fixed monthly amount or introducing better appeal systems for affected users.
Key proposals discussed
- Focus subsidy cuts on T15 instead of T20
- Use more detailed household data
- Include factors like location and living costs
- Improve PADU and tax data integration
- Create easier appeal and review systems
The government has not confirmed the final mechanism yet, but discussions on targeted petrol subsidies are expected to continue in the coming months. What do you think about the possible T15 petrol subsidy plan in Malaysia?
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