The government should refine the provision of targeted subsidies before the time of implementation next year by carrying out a cost-benefit analysis to ensure that the plans benefit the people and not non-Malaysian citizens.
This was expressed by former international trade and industry minister Tan Sri Rafidah Aziz as she believes that the study will be important to ensure that the subsidies can be allocated fairly.
“The implementation has to be really targeted at the right people,” she said, reminding every agency and authority to spend the allocation given by the Prime Minister Datuk Seri Anwar Ibrahim in Budget 2025 in the best way possible.
“Let’s not waste the people’s money. It is important to direct every ringgit to what has been determined and planned,” Rafidah pointed out, which is in line with the government’s aim to strengthen the country’s fiscal position.
Because of this, vehicles owned by non-citizens will not be allowed to benefit from the RON95 subsidy.
“The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure (a reduction of 21.9%) to the total subsidy expenditure, if the subsidies are only given to the B85 group and citizens.
“By ensuring that the targeted RON95 subsidies do not involve non-citizens, it will give savings of RM300 million (2%) to the government,” the Economy Ministry stated, elaborating that the subsidy will cover 85% of the people based on the Basic Expenditure of Decent Living (PAKW) of households.
