logo
Targeted RON95 subsidy rollout delayed due to further tweaks in mechanism, says Fahmi

Targeted RON95 subsidy rollout delayed due to further tweaks in mechanism, says Fahmi

The Star3 days ago
KUALA LUMPUR: The government's plan to implement targeted subsidies for RON95 petrol has been slightly delayed due to the need for a more detailed review of the mechanism, says Datuk Fahmi Fadzil.
The Communications Minister said the government is currently fine-tuning every aspect of the policy to ensure that its implementation will not have an adverse impact on the public.
Fahmi said Prime Minister Datuk Seri Anwar Ibrahim had also addressed the matter during the recent government retreat involving Members of Parliament.
'The Prime Minister expressed his view that he does not want the implementation of any policy to negatively affect the majority of the rakyat.
'It is this process of fine-tuning that has resulted in a slight shift in the timeline,' he told a weekly press conference at Parliament on Monday (July 21).
Fahmi, who is also the government spokesperson, said several adjustments had already been made to earlier policies to avoid placing undue burden on the people.
'That is one of the reasons why, following the implementation of measures such as the diesel subsidy rationalisation and other efforts, we found it necessary to re-examine the subsidy delivery mechanism.
'In the same spirit of minimising impact, even the expansion of the sales and services tax (SST) underwent further refinements after it was announced.
'The same approach applies to policies that have yet to be implemented but were previously indicated including the targeted subsidy for RON95,' he said.
The rationalisation of the RON95 subsidy was initially expected to be introduced by mid-year.
Earlier this month, Second Finance Minister Datuk Seri Amir Hamzah Azizan said the government was in the final stages of preparing for its implementation.
The move is part of the government's broader fiscal reforms aimed at curbing leakages and ensuring that high-income groups and businesses contribute more fairly to national revenue.
On a separate matter, Fahmi said the Transport Ministry will be introducing stricter enforcement measures on bus safety following last month's tragic crash that claimed the lives of 15 Universiti Pendidikan Sultan Idris (UPSI) students.
He said Transport Minister Anthony Loke had presented preliminary findings on the incident during the Cabinet meeting last Friday, and that follow-up enforcement actions would be taken soon.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Malaysia needs long-term solutions, not short-term surprises
Malaysia needs long-term solutions, not short-term surprises

The Star

time2 hours ago

  • The Star

Malaysia needs long-term solutions, not short-term surprises

PRIME Minister Datuk Seri Anwar Ibrahim's long-teased "special surprise" has proven underwhelming. The announced measures – a one-off RM100 cash handout for citizens age 18 and above, a 6sen reduction per litre to the RON95 fuel price, the declaration of Sept 15, 2025, as a public holiday, delayed toll hikes and an adjustment in minimum wage – have failed to deliver meaningful relief to the public or restore market confidence. Instead of inspiring confidence, these short-term measures have raised further concerns about the government's strategic direction. Many Malaysians, especially urban residents, see little in terms of actual assistance. The impact is miniscule: RM100 may cover only a few days' worth of basic necessities, while the 6sen fuel reduction provides marginal savings in the face of rising living costs.

Malaysia's fiscal stability will be jeopardised if SST expansion deferred, says PM
Malaysia's fiscal stability will be jeopardised if SST expansion deferred, says PM

The Star

time3 hours ago

  • The Star

Malaysia's fiscal stability will be jeopardised if SST expansion deferred, says PM

KUALA LUMPUR: The nation's fiscal stability would be jeopardised if the proposed expansion of the Sales and Service Tax (SST) were deferred, said Datuk Seri Anwar Ibrahim. The Prime Minister stated that such a move would result in the government missing its revenue target and impact its ability to fulfil its responsibilities towards the rakyat. "The revision of the sales tax rate and the expansion of the SST scope, which took effect on July 1, is expected to generate additional revenue of RM5bil over the six months of this year 2025 and RM10bil in 2026," he said in a written parliamentary reply to a question raised by Lim Guan Eng (PN-Bagan) in Dewan Rakyat on Thursday (July 24). Lim had asked whether the SST expansion could be deferred in light of the United States tariffs and the current economic slowdown. Anwar, who is also the Finance Minister, reaffirmed the government's commitment to strengthening the nation's fiscal position through tax reforms. He emphasised that this was crucial in ensuring sustainable revenue to support development and social programs, despite growing public concern over the rising cost of living. He noted several measures implemented to cushion the impact of the SST on the rakyat and businesses. Among them, he cited the RM13bil allocation for STR/SARA cash aid programs, up from RM10bil compared to 2024. He also mentioned the increased allocation for the Education Ministry, from RM59bil last year to RM64bil in 2025. He added that the allocation for the Health Ministry was increased from RM41bil to RM45bil, which would aid in hiring contract doctors. Service tax exemptions will be granted to tenants classified as small and medium enterprises (MSMEs) with annual sales of less than RM1mil. For construction service providers, the threshold for service tax compliance has been increased from RM500,000 to RM1.5mil over 12 months, to ease the compliance burden on smaller contractors. This same threshold applies to small-scale private healthcare clinics to protect them from undue tax pressure. Regarding the breakdown of the additional tax revenue, particularly those borne by locals and foreigners as requested by Lim, Anwar said this was not possible. He explained that it was not feasible to accurately determine such a breakdown because the national revenue collection system does not categorise contributions based on the taxpayer's citizenship.

Subsidised price of RON95 to be set at RM1.99
Subsidised price of RON95 to be set at RM1.99

The Sun

time3 hours ago

  • The Sun

Subsidised price of RON95 to be set at RM1.99

PUTRAJAYA: About 18 million Malaysian drivers and motorcyclists, including youth as young as 16 and gig workers, are set to benefit from a new targeted fuel subsidy that will see RON95 petrol priced at just RM1.99 per litre. Prime Minister Datuk Seri Anwar Ibrahim said the long-anticipated plan would be implemented soon, with full details to be revealed by the end of September. 'The government's commitment has never wavered in ensuring that public subsidies go to those who truly need them. Ordinary Malaysians will continue to benefit, but leakage to ineligible groups, including foreign nationals, must stop.' Under the new system, only Malaysian citizens will qualify for the subsidised RON95 rate, verified via MyKad. Foreigners will be required to pay the full market price. Anwar said the current blanket subsidy model is no longer sustainable, with the government spending nearly RM20 billion annually on RON95 alone. 'Although global oil prices have fallen, the unsubsidised price of RON95 is still around RM2.50 per litre.' He said the RM1.99 price is still heavily subsidised and represents a major commitment by the government despite the improved fiscal outlook. In 2023, RM20 billion was spent to keep fuel prices manageable. The same amount was allocated in 2024. Addressing concerns about rising utility costs, Anwar said claims of increased electricity bills are inaccurate. He said in fact, 85% of domestic users are now paying less than before, thanks to lower energy generation costs. 'Although the tariff has changed, bills have gone down, some by as much as 14% compared with the first half of the year.' Anwar slammed critics for spreading misinformation, saying the reality is that Malaysians are seeing real savings. He acknowledged that broad subsidies were necessary in the past, especially during periods of high national debt and low government revenue. 'I apologise for the delay in implementing reforms. But we had to make tough calls on water, electricity, and fuel to stabilise the economy first.' He said now that conditions have improved, reforms can move forward. Anwar also announced that toll rate hikes scheduled for this year on 10 highways would be postponed, despite the increases being part of long-standing concession agreements. 'According to projections, tolls were supposed to go up this year.' The government will fork out over RM500 million in compensation to maintain the current toll rates. The selected highways include the Senai-Desaru Expressway, East Coast Expressway Phase 2, South Klang Valley Expressway, Butterworth Outer Ring Road and KL-Putrajaya Expressway.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store