Maybe it’s the T10 and not the T15 who will not enjoy the petrol subsidy. Are you in T10?
This is something that will affect the ones who are affected daily, weekly, monthly and maybe even forever. We are talking about the petrol subsidy which is supposed to stop for certain segments of the population mid of 2025. This is where people pumping RON95 will no longer enjoy the RM2.05 per liter price of today but instead will be paying the market price instead. If the oil price goes up, then the petrol price moves up further. It was revealed earlier that the group which will be affected is the T15. Briefly, the top 15 percent of Malaysians where the household income is concerned.
No need for speculations, not yet decided
When everyone started to speculate on who are these T15, our Economy Minister said that the T15 group has not yet been finalized. It will have to be refined further. He mentioned that people staying in Kuala Lumpur versus people staying in smaller towns will be evaluated objectively. This is because earning the same pay in Kuala Lumpur may mean the person is just a normal guy but earning the same amount in kampung may mean the person is very wealthy. Thus, the person staying in kampung but earning same income as someone in Kuala Lumput may not receive the salary.
Best to keep things simple
In the corporate world, the simpler the things are, the better the implementations would be. Thus, the more criteria, the more refinements, I think things will become even more complicated. Then again, I am not the ministry and I am very sure they have their formulas which will help to determine who should enjoy the subsidies and who should not. So, perhaps we just wait another month or so for the announcement.
Article in malaymail.com Prime Minister Datuk Seri Anwar Ibrahim said authorities are reviewing the criteria and may adjust it if the T15 threshold proves unsuitable, according to a New Straits Times report.
“Some are upset because it’s T15… Who said T15 is RM12,000?” he asked, adding “It hasn’t been decided because we want to see if T15 can afford it.”
“If they [T15] cannot afford it, we might make it T10, or raise the income threshold for T15 to something higher than RM12,000, possibly RM15,000 or RM18,000 a month,” the prime minister said at the Perak PKR Convention at the Kinta Riverfront Hotel in Ipoh. Do read the full article here: Article in malaymail.com
Whether T10 or RM18,000 but under T15, just need to be ready
An economics professor gave a good suggestion. Article here: kopiandproperty.com However, should it be decided based on T10, then this group of people who are currently overspending would just have to make sure they could spare the extra money for the rise in petrol price. The ones who are spending well within their means should be just fine and probably they are already saving so much from not buying the most expensive car they could afford.
Meanwhile those who are earning RM18,000 and above can also feel good for themselves too that this could be the threshold. In other words, when we earn this amount as a household here in Malaysia, we are considered doing well enough not to enjoy subsidies. Well, still have time to save some money for the removal of subsidy next year. Happy saving and waiting for the full news about T10, T15 or whether it’s for the RM18,000 or higher earners.
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2 responses
If the government moved the subsidy from fuel to the cost of cheap small electric cars for B40s then running costs for them would be much lower and all fuel subsideis could go.
Can be one of the things to consider. Just need to evaluate those cars. There is a reason the cheapest ones can only be sold in China but not even in Europe or AU which has already been swamped with Chinese EVs. B40s have to pay for it via private chargers. Cost per km is lower than petrol but we will need more chargers.