T15 Classification Discussed Four Times, No Final Decision Yet

T15 classification to determine households that would be excluded from targeted subsidies is still being reviewed, says Economy Minister Rafizi Ramli.

Speaking at the Mid-Term Review of the National Oil & Gas Services and Equipment Industry Blueprint 2021-2030, Rafizi stated that the proposal has been presented to the Cabinet four times but remains under deliberation.

He emphasised the need for careful planning to minimise disruptions and ensure a smooth transition, as the classification aims to promote fair and efficient subsidy distribution.

Stakeholders, including consumer groups and economists, have called for greater clarity on the T15 classification to prevent middle-income households from being unfairly affected.

Previously, the government announced that the T15 classification would be unveiled in the first quarter (Q1) of 2025, determining which households would be excluded from receiving subsidies.

Additionally, discussions have taken place regarding a two-tier RON95 fuel pricing system, where the wealthiest 15% of households would pay market prices, while subsidies continue for the remaining 85%.

This policy is expected to save the government RM8 billion annually, allowing funds to be redirected toward essential public services.

Rafizi also noted that the T15 classification will be based on locality rather than a fixed national income threshold, ensuring that regional cost-of-living differences are considered.

Further details on the framework, subsidy eligibility, and implementation timeline will be announced as the review progresses.

Source: FMT