RON95 subsidy reform must reflect real-life pressures faced by ordinary families

WHILE it is understandable that the government’s intention to improve the RON95 petrol subsidy mechanism is to ensure that assistance can be channelled more effectively to those who truly need it, nevertheless, any reform must be carried out carefully and fairly and not simplistically.

This is because the reality confronting many Malaysian families today is far more complicated than what income figures alone may suggest.

Many dual-income households, especially in urban areas, may appear on paper to have crossed the current T20 threshold simply because both husband and wife are working.

A family where each spouse earns RM5,000 or RM6,000 a month can easily be classified as “high income” based on statistics.

Yet in places such as Kuala Lumpur and Selangor, the actual cost of living tells a very different story.

Housing loans, car repayments, children’s education expenses, medical costs for ageing parents, childcare, and rising daily expenses continue to place heavy pressure on middle-class families.

While their income figures may look comfortable, many are in fact managing tight household budgets every single month.

Efforts to introduce a more targeted subsidy system ought to be supported as government resources should indeed prioritise those most in need.

However, the implementation cannot be sweepingly reduced to a single income line that fails to recognise the different realities faced by different households.

The government must provide greater clarity on how the mechanism will be assessed.

Will eligibility be based on individual income or total household income? Will regional differences ie urban versus rural in living costs be taken into account? Can ordinary M40 families truly be placed under the same category as genuinely wealthy high-net-worth groups?

These are legitimate concerns that deserve proper answers.

Simultaneously, the government should also review broader issues affecting the M40 group, including the long-standing personal income tax relief threshold which has remained unchanged for years despite soaring living costs.

Many hardworking Malaysians are increasingly worried that every small climb in income may eventually result in the gradual loss of subsidies and assistance.

Policies should not create the perception that those who work harder and contribute more are being unfairly penalised.

Any mature and responsible reform must go beyond statistics alone. It should be based on transparency, fairness, and a genuine understanding of the financial realities faced by ordinary families.

The government is therefore urged to conduct a comprehensive social impact assessment, engage the public more openly, and provide sufficient transition time before implementing any major changes.

Clear communication and thoughtful planning are essential to avoid unnecessary anxiety, confusion, and misunderstanding among the rakyat.

DATUK SRI DR WEE JECK SENG

MCA Vice President, Member of Parliament for Tanjung Piai