Anwar: Luxury Assets Will Be Factored In For RON95 Subsidy

Prime Minister Datuk Seri Anwar Ibrahim has confirmed that additional criteria will be introduced to determine eligibility for the RON95 petrol subsidy, with luxury property and vehicle ownership among the factors to be considered.

He said the government will rely on multiple data sources, including income details from the Inland Revenue Board (LHDN) and the Household Income Survey (HIS) by the Department of Statistics Malaysia (DOSM), to ensure a more comprehensive approach.

“This is to make sure that assistance is targeted to those who truly need it. Several additional criteria will be taken into account, including ownership of property and luxury vehicles, as well as monthly income, before the final decision is made and announced by the end of September,” Anwar explained in a written reply to Parliament.

The prime minister stressed that the government remains committed to targeted subsidies for RON95 petrol, assuring that 85% of Malaysians will not be directly affected. Non-citizens and individuals considered financially capable will be excluded from receiving the subsidy.

This follows Anwar’s announcement in July that the subsidised RON95 price will be set at RM1.99 per litre in September, applying only to Malaysians. Foreigners, including tourists and Singaporean visitors, will instead pay the market rate of RM2.50 per litre.

He added that Malaysia spends heavily on subsidies each year, with more than RM40 billion allocated in 2024 alone for items including petrol, diesel, cooking gas, packaged cooking oil, electricity bills, and eggs.

Such expenditure has restricted the government’s fiscal space to fund socio-economic development, while also leading to leakages and smuggling estimated at more than 20 percent of total usage.

Malaysia has already begun targeted subsidy measures for electricity and diesel, and the same principle will be applied to petrol in the coming months.

Source: FMT