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Non-citizen vehicles forbidden from enjoying RON95 subsidy

25 Nov 2024, 3:08 PM
Non-citizen vehicles forbidden from enjoying RON95 subsidy

KUALA LUMPUR, Nov 25 — The government does not intend to allow vehicles owned by non-citizens to enjoy the RON95 subsidy, said the Economy Ministry.

The move is in line with the government’s objective to strengthen the country’s fiscal position, as stated in the 12th Malaysia Plan.

“The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure, or a reduction of 21.9 per cent, 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 RM0.3 billion (2.0 per cent) to the government,” it said in a written reply on the Parliament website today.

The ministry was responding to Kuala Krai MP Abdul Latiff Abdul Rahman's query on its proposal to allow vehicles registered in Brunei to use RON95 in Malaysia.

The government will implement the targeted RON95 subsidy in the middle of 2025, covering 85 per cent of the people which will be determined based on the Basic Expenditure of Decent Living of households.

— Bernama

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