Government Refining Best Approach To Define T15 Group Under Targeted Subsidy Plan
PUTRAJAYA: The government is refining the best approach to determine eligibility categories for the targeted RON95 fuel subsidy scheme, including higher-income groups such as T5, T10, T15 and T20, before the policy is finalised.
Economy Minister Akmal Nasrullah Mohd Nasir said the matter is currently being discussed comprehensively within the National Economic Action Council (MTEN) as part of the government’s broader effort to restructure Malaysia’s subsidy system into a more targeted and sustainable framework.
According to him, the main challenge at present is identifying an appropriate threshold between Malaysians who genuinely qualify for subsidies and those financially capable of bearing fuel costs without government assistance.
He said the government wants to ensure the implementation of targeted subsidies is handled carefully so that it does not burden individuals who may still require support despite being close to higher-income categories.
“The key issue currently being refined is how we determine the appropriate boundary between groups that should continue receiving subsidies and those who may no longer require such assistance,” he said.
He spoke to reporters after attending a letter-of-offer presentation ceremony involving semiconductor company Arm Holdings here today.
According to Akmal Nasrullah Mohd Nasir, the government is not relying solely on income measurements to determine the T15 category, but is also considering several additional factors including living cost data and current socioeconomic conditions.
He explained that such an approach is necessary to ensure the new subsidy system remains fair while preventing deserving groups from being excluded from government assistance.
In addition, the government is also planning to introduce an appeal mechanism for individuals who believe they should still qualify for subsidies despite falling within a certain category.
He said the appeal process is intended to ensure the targeted subsidy implementation remains flexible and reflects the real-life challenges faced by Malaysians.
Akmal Nasrullah Mohd Nasir reiterated that the government’s position remains unchanged, namely that subsidies should be distributed more accurately to ensure assistance truly benefits those who need it most.
According to him, inefficient subsidy management could significantly impact the country’s fiscal position while complicating efforts to control inflation and sustain economic growth.
“We need to strike a balance between protecting public welfare, managing rising living costs and ensuring the national economy continues to grow sustainably,” he said.
He also revealed that the government hopes to finalise details of the targeted subsidy mechanism before next month.
If all processes proceed smoothly, the new mechanism is expected to be implemented at the beginning of the month, although it remains subject to final government approval.
-wilayah.com.my
