The latest proposed saving tip for the government popping up like fuel prices in social media is to take away the Budi Madani RON95 200 liters subsidize from the T20 , the upper middle class.
This is not new. The initial fuel subsidy mechanism before it was launched on 30 September 2025 had excluded these top earners. But in the last minute runup to the launch , they were gifted with this largesse as well.
The government’s reasoning at that time was that the income level set at RM13,000/month and later RM20,000/month was not sufficiently high and placed pressure on the then T15 category. At RM50,000/month , the number of affected people was too low and was not feasible and it was dropped .
Seemingly before the exemption, there was not too much pushback against T15 being excluded. It was one of the promised reforms which the government wanted to push through quickly to satisfy the public cries and dissatisfaction over the slow pace of reforms .
Times were good and fuel prices then were at a level acceptable to much of the world including Malaysia with little price fluctuation. Food prices were affordable by even most of the B40.
Today with high fuel prices due to the Iranian war and the standoff and blockade at the Straits of Hormuz, the government is looking to cut expenditure every which way they possibly and politically safely can. Education and health were thrown into the ring but quickly withdrawn when the masses rallied against it.
Social media currently is rife with comments lambasting the proposal of taking away RON95 subsidize from the T20. Citing they pay tax and most of it, they will emigrate , and they are also citizens entitled to benefits are amongst a host of reasons why it should not be taken away.
Not sure if most of these comments or arguments come from the T20 themselves, but for sure, they have an axe to grind and it is their right to argue to keep an existing money saving benefit .
I hope those who are not T20, are not advocating that the subsidies should be continued for the T20 and below are justifications why it should be discontinued.
The T20, especially those in the higher tiers, are well connected and wealthy enough to lobby politicians to retain the subsidies and likely all MPs and Ministers fall into this higher tier category. Let them do the job themselves as they may be helping themselves and their families.
They are sufficiently wealthy to hire lawyers , if they choose to, and dismiss this proposal if it does come to fruition. And accountants can find or create loopholes so they don’t miss out.
Most T20 can afford one or more EV. Therefore, not having a fossil powered car is likely not problematic with them.
And those who must have a fossil fuel powered car, are looking at the expensive, powerful , and luxurious models. They can afford the higher fuel costs and, since these cars run on higher octane unsubsidized petrol. Just hope they don’t forget or forgo the road tax and insurance .
One good thing coming out from T20 buying more EVs will be the government will be hard pressed to improve the EV infrastructure. Again, their lobbying and connections will push this through quicker.
The T20 or T15 then were initially not considered for subsidized petrol , so exemption is not new or an outright denial of benefits.
Most of us accepted the 100-liter subsidized petrol reduction rationally and without fuss because the country is hemorrhaging RM5 Billion per month for subsidized petrol . Many realized stabilizing food prices for the masses, education and health care takes precedence.
Prime Minister Anwar Ibrahim had stated the government cannot help everyone and we all have to sacrifice some measure of benefits and comforts during hard times brought about by situations beyond the government control.
The amount saved in exempting subsidized petrol to the T20 is estimated at RM1.5Billion/month. This apex group represents 1.64 million households earning 45.1% of household income and enjoys a 30% slice of the RM5Billion monthly subsidies. The 6.56 million households of the B40 and M40 earning 54.9% of household income have to share out 70% of the petrol subsidy. The math are lopsided and don’t come out fair and equitable for the lower groups .
Amongst our Asean neighbors, Philippines, Thailand and Vietnam have a higher tax bracket at a maximum of 35 % but have little or no petrol subsidies compared to Malaysia tax bracket at 30% whilst enjoying one of the lowest petrol prices in the world.
Singapore ,ranked the most expensive city in the world with the highest fuel price in Asean and their highest tax bracket is at 24% , has not seen its top earners leaving in droves. Of course, Singaporeans benefit from cheaper shopping, entertainment , and petrol from Malaysia and could be a reason their top earners put up with higher fuel costs and don’t pack their bags and leave .
The T20 with their higher disposable income and savings can make adjustment to their spending easier and quicker . They also have more and a variety of options to save elsewhere to counter higher fuel costs .
Many M40 and the B40 are hit by a double whammy as real wages have not risen much over the years with basic food prices, transportation, and utilities always on the rise and now with this fuel crisis.
The RM1.5Billion saved per month from taking back the RON95 subsidized petrol from the T15 will be able to reduce some hardships for the B40 and M40. The T15 should look at this not as a loss of benefit but as a small but significant sacrifice and humanitarian assistance to their lesser brethren.
Koo Wee Hon (kooweehon@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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