Budi95: Govt Delays Subsidy Cut For T15 Until System Fully Ready

The government is holding off on removing RON95 fuel subsidies for Malaysia’s top 15 percent income group (T15) until the BUDI95 system is fully stable and ready to handle it, said Prime Minister Datuk Seri Anwar Ibrahim.

“If there is a need in the future, when the system is more robust, then we can impose it for those with truly high incomes or who own luxury vehicles,” he told Parliament when asked why the T15 group is still included under the BUDI95 targeted subsidy programme.

Anwar explained that while the government initially considered setting the income threshold at RM13,000 or RM20,000 a month, it decided against it as the cut-off would still affect many middle-income families. 

“We therefore propose raising the threshold to around RM50,000 per month, but the number of people affected under that threshold is very small,” he said, adding that enforcement would also be costly and complex.

Meanwhile, the Prime Minister announced that the monthly RON95 quota for e-hailing drivers has been increased from 600 to 800 litres following feedback that the current limit was insufficient.

“If they truly have records and needs, then the government agrees to increase the eligibility limit for BUDI95 for e-hailing drivers to 800 litres per month,” he noted.