The Malaysian government is currently reviewing a proposal to limit or remove petrol subsidies for high-income earners, as part of ongoing subsidy rationalisation efforts.
According to Anwar Ibrahim, the proposal is being studied by the Majlis Tindakan Ekonomi Negara (MTEN), with discussions ongoing for about a month.
🔍 Key Points:
- The government is considering which income group should be affected:
- Main goal:
👉 Remove subsidies for the wealthy without burdening the upper middle class
- Decision not final yet, but in principle, the government agrees with targeted subsidy reforms
⛽ Why This Matters:
- Malaysia currently spends billions monthly on fuel subsidies (around RM6–7 billion)
- Subsidised RON95 petrol is still priced at RM1.99/litre under targeted schemes
- High-income groups (T20) are seen as less dependent on subsidies, so removing them could:
- Reduce government spending
- Redirect aid to B40 & M40 groups
Malaysia