The criteria for determining targeted subsidies for RON95 petrol which is to be introduced soon will factor in household dependents and employment status, according to Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh.
Other significant considerations include the newly introduced Basic Expenses for Decent Living (PAKW) and the Cost of Living Index (IKSH), developed by the Department of Statistics Malaysia (DoSM).
Fuziah further detailed, “All aspects of household expenditure have been evaluated. However, any move to implement targeted subsidies for RON95 will inevitably impact families reliant on this fuel.”
In the analysis presented by DoSM, key indicators of living costs were reviewed. These indicators encompass whether a household owns two vehicles, the employment status of both spouses, and whether children in the household are school-going.
The data also incorporates demographic details such as household size, structure, and urban or rural residence, as outlined in the Living Cost Indicators (CLI) report.
The move towards targeted subsidies aligns with Prime Minister Datuk Seri Anwar Ibrahim’s announcement during the 2025 Budget presentation where he stated that the initiative, set to roll out mid-next year, reflects the government's commitment to ensure financial support reaches those who need it most while safeguarding the public's welfare.