Anwar: 90% of Malaysians Unaffected by Targeted RON95 Subsidy

Anwar: 90% of Malaysians Won’t Be Affected by Targeted RON95 Subsidy

In a recent statement that has caught the attention of both the public and industry experts, Prime Minister Datuk Seri Anwar Ibrahim clarified that a significant majority of Malaysians—90%, to be precise—will not feel the impact of the proposed targeted RON95 subsidy.

The Prime Minister emphasized that the targeted subsidy system, aimed at streamlining government spending and directing financial assistance where it is most needed, will not burden the vast majority of the population. He reassured the public that those earning below the threshold of RM5,000 per month will continue to benefit from the existing fuel subsidies.

What Does the Targeted RON95 Subsidy Mean for Malaysians?

The shift to a targeted subsidy is designed to ensure that subsidies are directed towards those who need them the most. Anwar explained that the mechanism would use data from the PADU system, which will assist in identifying eligible recipients based on household income.

“Most Malaysians, especially those with lower incomes, will continue to benefit from the subsidy. The government's priority remains to ensure that the lower and middle-income groups are shielded from rising fuel costs,” said Anwar.

However, for high-income earners, particularly those above the RM5,000 threshold, the government intends to phase out the subsidy. This move, according to Anwar, is part of the government's broader fiscal reform plan to reduce the national subsidy burden while maintaining support for those who truly need it.

Why Is the Government Introducing This Change?

The rationale behind implementing a targeted subsidy is clear—Malaysia is currently facing increasing financial pressure, and the government has indicated that better management of public funds is needed. By ensuring that subsidies reach only those who need them, the government aims to direct more resources towards vital sectors such as healthcare, education, and infrastructure.

Impact on Car Owners and the Fuel Market

For car owners, this means that they might continue paying the same price for RON95, provided their income falls within the designated brackets. On the flip side, high-income earners may face higher fuel prices at the pump.

For those concerned about managing fuel costs, alternatives such as electric vehicles (EVs) and hybrid cars are becoming increasingly attractive. If you're looking to trade your vehicle for something more energy-efficient, you can easily get a free car valuation through the Motorist app, ensuring that you're making the best financial decision.

What’s Next for Malaysians?

With Malaysia’s commitment to sustainable growth, the transition to a more targeted subsidy system aims to balance financial health with fairness. As the government rolls out more details about how PADU data will be used and the thresholds for subsidies, car owners and motorists are encouraged to stay informed.

For more updates on fuel subsidies and to get a betterunderstanding of your car's value, be sure to check out the Motorist app, where you can sell your car and receive a free car valuation.

The introduction of a targeted RON95 subsidy system, although designed to be fair, ensures that the majority of Malaysians will not feel the effects of the subsidy cuts. By using income-based data, the government is directing funds more efficiently to those who need it most while maintaining its commitment to supporting lower and middle-income families. The future of Malaysia’s fuel subsidy system is poised for a more sustainable and transparent model.

Stay updated with the latest news and find out how you can navigate these changes effectively with the Motorist app.

Read More: Massive Fire Erupts in Puchong – Suspected Gas Pipeline Blaze Caught on Video!

Download the Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage vehicle related matters.