SHAH ALAM, May 16 — Malaysians are urging the government to ensure any cuts to the BUDI95 scheme target the T20 group, while maintaining existing aid for B40 and M40 households.
They said any reduction in subsidy quotas for lower-income households could severely impact their livelihoods amid the rising living costs.
Speaking to Media Selangor, trader Rafi Rahman, 41, said government aid should be focused on vulnerable groups, given they are the most burdened and affected by the current economic climate.
He said lower-income earners are constantly grappling with economic pressures.
“I hope the government can provide further details on how (a subsidy cut for the T20) would benefit the people, specifically the B40 group.
“Given the current economic situation, what we (B40) have is simply not enough,” he said.
Rafi said he hopes savings from a subsidy cut for the T20 group would be channelled back into easing the burden of the B40 group.
Last week, Economy Minister Akmal Nasrullah Mohd Nasir told CNA in an interview that Putrajaya is looking into lowering fuel subsidies for higher-income earners as early as next month as Malaysia faces rising costs driven by volatile global oil prices.
Akmal said the shift towards more targeted support follows a sharp rise in the government’s monthly subsidy spending, which surged to RM6 billion in April after the conflict in Iran from RM700 million previously.
Retired army officer Ali Marhaban, 70, agreed that subsidies for the T20 group should be reduced, and that B40 should be prioritised for assistance.
He also suggested the 200-litre BUDI95 quota be maintained for lower-income groups, with a reduced quota for the wealthy.
This is following reports that Deputy Finance Minister Liew Chin Tong said the government is considering lowering the BUDI95 monthly quota from 200 to 150 litres, although Liew later clarified his remarks were taken out of context.
“That is not right, you can’t do that. B40 households are in a really difficult position. For the B40, it should be 200 (litres), while 150 (litres) can be imposed on the others,” Ali said.
He also dismissed suggestions that 200 litres is enough, recalling an instance when exhausted his allocation before the end of the month and had to pay in full for unsubsidised RON95.
Like Rafi and Ali, clerk Wanie Rusmi, 29, agreed with the proposal to reduce subsidies for the T20 group to ensure assistance is more fairly targeted, but expressed concern about cuts across the board.
“The (unsubsidised) price of fuel is expensive now. If fuel prices rise, daily expenses will also increase. I don't think it’s right,” she said, adding that rising fuel prices have begun to weigh on her mind.
