Malaysians hoping targeted RON95 petrol subsidy will reach those in need

GEORGE TOWN: Malaysians are hoping that the targeted RON95 petrol subsidy, expected this June, will not hit them hard, especially the underprivileged groups who rely on their vehicles for daily transport.

Stall assistant I. Veerappen, 70, hopes the subsidy will effectively reach those in need, given the current high cost of living.

“With the rising cost of living, I rarely drive these days because it’s just too expensive. Using a motorcycle is a much more affordable option,” said Veerappen, who has been commuting from Kepala Batas on Penang mainland to George Town for work daily.

Although his wife and children are concerned about his daily motorcycle commute to Penang island, Veerappen sees no other way to reduce his expenses in these challenging times.

He said the government should consider postponing the targeted subsidy implementation until the prices of goods and essentials are stabilised.

Technician Khaw Kheng Guan, 61, said the targeted RON95 petrol subsidy must benefit the underprivileged and middle-income groups.

He proposed that the government introduce subsidies for lower-­income individuals who rely on public transport.

Khaw also called for improvements in public transport accessibility, particularly in areas where people depend on private vehicles for commuting.

“This would encourage more people to opt for public transportation instead of using their own vehicles,” he said.

P-hailing rider R. Sundram, 37, expressed concern about the financial strain he would face if he is excluded from the subsidy.

He has been delivering food and goods from Sungai Petani, Kedah, to George Town, Penang.

“It will put me in a tough financial spot if I am not entitled for the subsidy,” said Sundram, who welcomed a baby girl a few months ago.

He said the rising cost of living had forced him to work more than 10 hours a day just to provide for his family.

“Hopefully, traders do not hike prices of food and daily necessities when the rationalisation process takes effect,” he said.

Federation of Malaysian Manufacturers (FMM) Penang chapter chairman Datuk Seri Lee Teong Li said the upcoming revision of the RON95 petrol subsidy must be well-structured and clearly communicated to the public.

“Technically, when petrol prices increase, it will eventually lead to a rise in everything else, including worker salaries, as employers will need to adjust increments and allowances.

“The key issue is how the government implements the change to avoid a domino effect on both the public and businesses.

“We’ve heard about the implementation multiple times. It would be best if they could share the full mechanism with everyone,” he added, highlighting the importance of stakeholder feedback.

The Consumers Association of Penang (CAP) believes that the rationalisation of the RON95 petrol subsidy will not severely impact most of the population if implemented properly.

“Reviewing, reforming and optimising subsidies are crucial for Malaysia.

“Rationalising the subsidies could redirect savings to improve public infrastructure and services, benefiting the nation as a whole,” said CAP president Mohideen Abdul Kader, pointing to the successful reduction of diesel smuggling through previous subsidy reforms as evidence.

Mohideen said while Malaysians need to prepare for the economic adjustments brought on by subsidy rationalisation, the poor are unlikely to be significantly affected.

“The primary goals of the rationalisation are to reduce fiscal burdens, improve economic efficiency and ensure better resource allocation.

“The government should also review the definitions and structures of the B40, M40 and T20 income groups, as these classifications play a crucial role in the effectiveness of targeted subsidies,” he said.