KLANG: Subsidy reforms must reflect the realities of Malaysian life instead of being based solely on statistical averages, says MCA deputy president Datuk Dr Mah Hang Soon (pic).
“Policies must reflect the realities faced by Malaysians from different backgrounds, regions and occupations,” he said.
As such, he said, the MCA urged the government to reconsider any plan to reduce the monthly Budi95 fuel subsidy quota to 150 litres.
Such a move would burden the public and possibly trigger a wave of inflation and social instability, he added.
In a statement, he also outlined five critical concerns regarding the proposed subsidy reductions.
He said the 150-litre cutoff would ignore the needs of those living outside urban centres.
“One problem is the nation’s public transport system which remains underdeveloped in rural and semi-urban areas, with many people relying entirely on private vehicles for long-distance daily commutes,” he said.
He also said the reduction would adversely impact people with highly mobile jobs such as sales, small-scale trading and delivery services.
Other concerns include the move becoming a catalyst for increasing inflation and impacting household budgets, as higher fuel costs may be passed down through the transportation and logistics sectors.
“It is contradictory for the government to speak about controlling inflation while simultaneously reducing fuel subsidies,” Dr Mah added.
The MCA also called out the government for prioritising fiscal consolidation over the welfare of families still recovering economically.
Dr Mah said subsidy rationalisation should only occur after significant improvements in income levels and social protection systems.
The party raised its concerns over government spending, suggesting that the administration should address “wastage and inefficiency” in large-scale projects and consultancy fees before asking citizens to tighten their belts.
Dr Mah also said there is a need for greater transparency and urged the government to release comprehensive data on fuel consumption across different demographics and regions.
“Significant policy shifts should not be introduced through passing remarks but through broad consultation with stakeholders, including consumer groups and small business owners,” he noted.
Dr Mah said the MCA is of the view that until reliable and accessible alternatives are available outside the Klang Valley, reducing fuel subsidies “traps” Malaysians into costs they cannot avoid.
He reiterated that the government should suspend any plan to reduce the Budi95 subsidy quota and instead focus on improving the nation’s fiscal standing.
This includes strengthening the public transportation system, reducing wastage, driving economic growth and increasing incomes, he added.
