PETALING JAYA: A 13,000-strong business group has voiced its hope that the government will not spring a surprise on the rationalisation of RON95 subsidy.
“Such a rationalisation, if any, should be gradual to avoid sudden cost pressures on businesses,” said SME Association president Chin Chee Seong (pic).
In view of next month’s tabling of Budget 2025 in the Dewan Rakyat, he said the association will recommend that the government revamp the RON95 subsidy mechanism by adjusting prices by 20% instead of removing the subsidies all at once.
Referring to Malaysia’s move to cut blanket diesel subsidies and float retail prices starting June 10, he said the suddenness of the announcement then had led to concerns about inflation.
“As such, I hope the government will give SMEs’ advance notice to prepare (if there is rationalisation of RON95 subsidy),” he said when contacted.
In July, Prime Minister Datuk Seri Anwar Ibrahim said such a rationalisation of RON95 subsidy was off the table for now as the government wanted to address the implementation of targeted diesel subsidies.
“The matter has not been discussed. We will deal with the diesel issue first, to give better and the right explanation,” he was quoted as saying.
Chin is the new president of the SME Association. He was elected during the annual general meeting on Saturday for the 2024-2026 term.
The new council includes members from various ethnic backgrounds.
Chin noted that the association has 13,000 member businesses nationwide.
“We hope the SME Association can be a comprehensive group representing the voices of different ethnicities, sectors and professions, and serve as a bridge between the government and SMEs,” he said.
Chin is also aiming for more small and medium-sized enterprises, especially those from non-Chinese communities, to join the association.
“If the SME Association is composed entirely of Chinese members, its voice and influence on the government will be weakened.
“Therefore, we will make every effort to recruit more members from different backgrounds,” he said.
