SHAH ALAM, May 12 — Economic experts have urged Putrajaya to carefully assess any revisions to the fuel subsidy mechanism, warning that changes could affect households across different income groups.
Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong said the proposal requires a more comprehensive evaluation due to the country’s diverse socio-economic landscape.
“It is not as simple as saying we can just cut all T20 from the initiative because Malaysia is very diverse; we need to look at this from various perspectives,” he said.
The caution comes amid plans to review the BUDI Madani initiative, particularly involving the possibility of excluding high-income earners from the BUDI Madani 95 subsidy programme, which was publicised by Economy Minister Akmal Nasrullah Mohd Nasir.
Koong added that regional cost-of-living differences should be taken into account, noting that income levels do not carry the same purchasing power nationwide.
“The cost of living varies significantly between regions, so the same income level does not reflect the same standard of living, as disposable income should also be considered, rather than relying solely on gross income.
“We cannot depend only on gross income without factoring in what is left after essential expenses. Living costs in urban areas like Kuala Lumpur are much higher compared to Kelantan, Terengganu, or Sabah, which means disposable income is lower even if gross income appears higher,” he said.
Meanwhile, Federation of Malaysian Consumers Associations president Datuk Marimuthu Nadason said the government should consider alternative measures to reduce expenditure before implementing subsidy cuts.
“There are other ways we can approach this issue, including saving electricity in offices, for instance.
“What we need right now is behavioural change. Many of us are travelling across the country like nothing is happening. We need to change our mentality first,” he said. – Media Selangor
