Economy Minister Rafizi Ramli has hit back at Muar MP Syed Saddiq Syed Abdul Rahman, reminding him that as a former minister, he should be well-versed in how the government budgetary process works. This comes after Syed Saddiq criticized the government for announcing a targeted petrol subsidy for RON95 without having finalised the classification of beneficiaries, specifically the “T15” group.
Speaking in a TikTok video on October 22, Rafizi explained that a budget is a forward-looking document that provides estimates and projections, not fully fleshed-out details. His comments were in response to Syed Saddiq’s statements made on social media platform X (formerly known as Twitter), where the former minister called out the government for being premature in its announcements.
"A budget is the government’s statement of its plans and intentions for the year. The figures announced are estimates and projections based on preliminary policy decisions," said Rafizi.
The economy minister elaborated that the purpose of tabling a budget is to gain Parliament’s approval for the overall framework of the government’s income and expenditure. Once this approval is secured, the government works out the finer details of the projects and policies, including opening tenders and appointing contractors.
Rafizi implied that demanding every detail be finalized before the budget is tabled would result in an impractically long process, dragging out the approval and execution phases.
"If we follow Syed Saddiq’s line of thinking—that everything must be detailed and confirmed before it’s presented in the budget—it could take years to finalize just one budget," Rafizi said. "Not to mention, we'd have to produce volumes upon volumes of documents for every MP, which would make the process slow and inefficient."
He also pointed out that Syed Saddiq, having been the youngest minister in Malaysia’s history, should understand how the budgetary process works and should know better than to push for what Rafizi described as an unrealistic approach.
Syed Saddiq’s Criticism: "Don’t Announce First, Think Later"
Syed Saddiq’s remarks came after Prime Minister Anwar Ibrahim, in his 2025 Budget speech, mentioned the government's plan to roll out a targeted RON95 petrol subsidy next year. The prime minister also stated that Malaysia's wealthiest citizens, referred to as the "T15" (Top 15% income group), enjoy approximately RM8 billion in petrol subsidies annually, an inequality that the targeted subsidy aims to address.
However, Syed Saddiq took issue with the fact that the exact definition of the T15 group was not yet finalized. On X, he criticized the government for allegedly putting the cart before the horse by announcing a policy without all the specifics ironed out.
"How could the government announce in the budget that the 'mahakaya' (extremely wealthy) enjoy RM8 billion in RON95 subsidies when they haven’t even finalized what defines this group?" Syed Saddiq questioned. He went on to say, "Don’t ‘announce first, think later.’ People's lives are at stake."
The former Muda president argued that such a major policy shift should be backed by concrete details before being presented to the public, stressing that this level of ambiguity does not instill confidence in the government’s planning.
The Reality of Budgeting: Estimates vs. Finalized Policies
Rafizi’s response reflects a broader defense of the typical budgeting process, where governments often work with estimates and projections. These are necessary steps in planning and securing funding for various projects and policies, many of which evolve after the initial budget approval. The minister emphasized that tabling a budget is about gaining Parliament’s approval for these general plans, allowing the government the leeway to work out details later.
"This is how all governments work globally," Rafizi explained. "Budgets are not final rulebooks but roadmaps, designed to show the general direction while allowing flexibility for refinement during implementation."
He further noted that waiting to finalize every detail before announcing a budget would cause delays that Malaysia can ill afford, especially with important reforms on the table, such as subsidies for petrol, which currently benefit the wealthy more than the lower-income groups.
The RON95 petrol subsidy has been a topic of public debate for years. Originally intended to provide relief to lower- and middle-income households, the subsidy has instead disproportionately benefited the wealthy, who often consume more fuel. The targeted subsidy aims to rectify this imbalance by ensuring that only those who need the assistance most receive it. However, the exact criteria for qualifying for the subsidy have yet to be disclosed, fueling public skepticism.
Syed Saddiq's Concerns and Public Sentiment
Despite Rafizi's explanation, Syed Saddiq’s criticism echoes a concern felt by many Malaysians—transparency and preparedness in government announcements. The call for "announcing first, thinking later" raises the question of whether policies are being rushed without enough groundwork, which can lead to confusion and frustration among the public.
The ongoing debate over the targeted RON95 subsidy will likely continue to unfold as more details emerge. In the meantime, Rafizi has made it clear that the budgeting process will move forward, even if not every aspect is finalized at the outset.
The clash between the two political figures underscores a key tension in policymaking—balancing the need for timely announcements with the demand for detailed execution plans. As Rafizi pointed out, perfecting both simultaneously is not always possible, but Syed Saddiq’s call for more caution resonates with those who want greater clarity from the government.
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