Akmal: Fuel Subsidy System Must Reflect Real Household Burdens, Not Income Alone
KUALA LUMPUR: The government’s targeted fuel subsidy framework should take into account actual household living expenses instead of relying purely on income categories, according to Akmal Nasrullah Mohd Nasir.
The Economy Minister said financial realities differ from one household to another, making it inappropriate to determine subsidy eligibility solely through rigid income groupings such as T20, M40 or B40.
He stressed that the government wants a more balanced and comprehensive approach to ensure assistance reaches those genuinely affected by rising living costs and economic pressures.
“The challenge is identifying a fair threshold because economic conditions cannot be measured based only on salary or household income,” he told reporters after officiating the strategic collaboration programme between the Ministry of Economy Malaysia and Majlis Agama Islam Wilayah Persekutuan under the People’s Income Initiative-Food Entrepreneur Initiative (IPR-INSAN) today.
According to Akmal Nasrullah Mohd Nasir, the ministry is currently refining the targeted subsidy mechanism as part of broader fiscal reform efforts, especially involving diesel subsidy management.
He explained that policymakers are trying to avoid creating classifications that may trigger debate or dissatisfaction among the public, as living costs vary significantly depending on location, family size, financial commitments and other economic obligations.
The minister added that the government remains focused on ensuring subsidy programmes are distributed more efficiently while maintaining national economic resilience amid uncertain global conditions.
Touching on international developments, he acknowledged that prolonged geopolitical conflicts continue to place pressure on fuel prices and supply chains worldwide.
“As long as global conflicts remain unresolved, the economic burden will continue to affect everyone. That is why intervention and mitigation measures are introduced from time to time,” he said.
When asked about the recent meeting involving Donald Trump and Xi Jinping and its potential impact on the global economy, Akmal said Malaysia’s immediate priority remains strengthening domestic economic stability.
He said the government’s main concern is ensuring uninterrupted supply of fuel and essential goods while improving the country’s economic resilience against external uncertainties.
Although hopeful that global tensions would eventually stabilise, he declined to speculate further on international political developments at this stage.
-wilayah.com.my
