Datuk Seri Dr. Wee Ka Siong, MP for Ayer Hitam, expressed serious concerns over the categorization of the top 15% income group (T15) in Malaysia as "ultra-rich," calling the policy unfair to hardworking families. During the debate on Budget 2025 in Parliament on Tuesday (Oct 22), Dr. Wee questioned the government's decision to cut subsidies for households with monthly incomes exceeding RM13,000, emphasizing that many in this bracket are ordinary citizens who work hard to make ends meet, not millionaires.
"I am not defending the ultra-wealthy or corporate elites, but there are middle-class families who will suffer because of this decision," Dr. Wee stated. “A husband and wife who are teachers, for example, might have a combined income that places them in the T15 group, but that doesn’t mean they are ‘ultra-rich.’ Is it fair to lump them into the same category as corporate executives or millionaires?”
The MP's criticism was centered on the flawed logic of the government’s policy. "It's not fair for teachers and other civil servants, who may fall into the T15 category based solely on household income, to lose access to subsidies that they still very much need," Dr. Wee argued. “We should be looking at their net disposable income—what they have left after taxes, loans, and other deductions.”
Dr. Wee also highlighted inconsistencies in how "household income" is defined and applied. Economy Minister Rafizi Ramli had earlier stated that the definition would be based on net disposable income and take into account factors like locality. However, Dr. Wee pointed out that this approach lacks clarity and could create confusion among the public.
“The shifting definitions will only lead to public frustration and skepticism. We need a clear, consistent system, not one that varies by region or interpretation," Dr. Wee emphasized. “This current model only complicates things.”
One of the more controversial components of Budget 2025 is the proposed two-tier system for RON95 petrol subsidies, which Dr. Wee believes would not only cause confusion but also increase operational costs at petrol stations. Under this system, wealthier Malaysians would pay higher prices for fuel while lower-income households would continue to receive subsidies.
Dr. Wee warned that the logistical challenges of such a system could result in delays, inefficiencies, and unnecessary financial strain on both consumers and businesses. He argued that maintaining a single price for RON95 petrol would simplify the process for everyone.
"A two-tier system is not the answer. It will create chaos at petrol stations and push up costs for station operators," he said. “Why not impose a petrol levy on luxury cars instead? It’s a fairer approach that ensures those who can afford high-end vehicles contribute more to the system.”
To address the inequality in fuel subsidies, Dr. Wee suggested an alternative: imposing a petrol levy on cars valued at RM300,000 and above. According to his calculations, an average car owner uses approximately 2,600 liters of petrol annually. If the government were to impose a RM1 levy per liter, these luxury car owners would pay an additional RM2,600 annually in taxes—an amount Dr. Wee believes they could easily afford.
"If someone can afford a RM300,000 car, they can certainly afford an extra RM2,600 a year in fuel levies," Dr. Wee proposed. “This way, we avoid penalizing ordinary citizens who rely on subsidies for their daily commute and living expenses.”
Dr. Wee’s critique of Budget 2025 serves as a call to reassess the fairness of the T15 classification and its implications for ordinary Malaysians. As the debate continues, the government will need to balance fiscal responsibility with the need to protect middle-class families from the burden of subsidy cuts.
"The T15 policy must be refined," Dr. Wee concluded. "We should not penalize hardworking families who are already contributing to the economy and doing their best to provide for their children and their future."
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