So many news about T15. Who are they, really?

So many news about T15. Who are they, really?

Are they the ones earning more than RM13,000 household income?

This is the news article: focusmalaysia.com This is the statement inside the article: “THE ultra-wealthy group, or T15, with household incomes exceeding RM13,000, is expected to no longer receive the RON95 fuel subsidy.” Additionally, it is estimated that only 3% of the population, or nearly one million people, fall into the T15 group. Full article here: focusmalaysia.com

Will this impact them, how much extra would the spending be for petrol?

This is the news article: focusmalaysia.com “On average, this group spends around RM500 per month on RON95, which only represents 3.8% of their salary. Without the subsidy, their monthly fuel expenses might increase by RM200 to RM300, totaling around RM700 to RM800, or just 5.3% of their income, indicating they can easily absorb the cost.” Article in focusmalaysia.com

If this is how the government decides, it would be good to know who are the T15s

Article in nst.com.my.  The definition of the T15 income category, which will be excluded from several government subsidies next year under the 2025 Budget, will not be based solely on gross household income, said Economy Minister Rafizi Ramli.

Instead, the definition will take into account variables such as net household income, locality, basic household spending for a reasonable quality of life, and others.

Rafizi said the new approach being developed by the government, which will apply to all income groups, is to ensure fairer subsidy distribution. Article in nst.com.my.

No one knows yet what is the definition of T15

Rafizi did not share when will the T15 definition be out. Maybe it should be soon, since this is Budget 2025. Even if it is supposed to be implemented mid 2025, the definition should be out soon. Let’s see what other things if it’s not about earnings alone. Perhaps exemptions for the owners of Proton Exoras and Proton Personas? Since these two cars, added up together is only RM120,000. Less than half of a brand news Segment D car.

Petrol will remain RM2.05 per liter if you qualify (85 percent of Malaysians apparently)

Article in paultan.org: “Anwar, who is also finance minister, said that 85 percent of the rakyat will continue to enjoy subsidized RON 95, which is currently pegged at RM2.05 per litre. He then introduced a new term – T15, for the top 15% of earners – and described this group as maha kaya. With no more subsidy, the ‘super rich’ and foreigners will pay the market rate for petrol, which is currently RM2.76.” Article in paultan.org:

What’s the impact if I drive 1,500 km per month?

We assume 1 liter of petrol RON 95 is enough for 15km. Thus, if someone drives 1,500km per month, the car will need 100 liters. RON 95 current price is RM2.05 per litre. Thus, the person would have to pump RM2.05 x 100 since every liter is able to move 15km. In other words, based on current petrol price, the person would have to spend: RM205 per month.

If RON95 becomes RM2.76 per liter, this is an extra 71 sen per liter. The person traveling the same 1,500km per month would need 100 liters of RON 95 and this is then multiplied with the extra 71 sen per liter which gives us an extra RM71 per month. Truth is, not enough to cause financial crisis unless of course the person is already barely scraping through every time he / she comes to the last few days.

My personal thoughts?

Please ensure all these are very straightforward and we do not need ANOTHER App being created to get people to put in data in order to qualify. If possible, give the rebate to those who need instead of needing so many steps. Everyone will pump as usual and the ones who qualify write to the government to get back rebates which are subsidies. Pump first… pay first and then get it back later. If one is not able to afford the petrol costs, then it’s time one realizes they need to earn more or buy a more fuel efficient car instead.

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