Pakatan risks losing M40 vote over new fuel subsidy


Diyana Ibrahim

Under the new fuel subsidy scheme to take effect next January, the price of RON95 will be determined by a float system based on world oil prices. – The Malaysian Insight pic by Nazir Sufari, October 9, 2019.

MIDDLE-INCOME folk, or the M40 group, feel excluded from Putrajaya’s fuel subsidy scheme to take effect next year, and are worried about higher living costs as the price of RON95 fuel will be floated under the new system.

The government is being unfair to the middle class, said a 36-year-old salesman who gave his name only as Hafiz.

“Do they think we are that rich? We have other commitments and debts to pay off. Once again, they have left the M40 out.”

He is worried that his monthly expenses will increase, already spending between RM10 and RM15 a day for a round-trip commute between Shah Alam, where he lives, and Kuala Lumpur.

“Fuel is subsidised and capped at RM2.08 a litre now, but if the new scheme brings it up to RM2.38 a litre, my expenses will go up, too. This does not even include toll,” he said, referring to the current price of RON95.

The Domestic Trade and Consumer Affairs Ministry on Monday announced a targeted petrol subsidy aimed at the low-income B40 group.

Under the scheme, which takes effect in January, the price of RON95 will be determined by a float system based on world oil prices, while cash subsidies will be given only to B40 individuals for a car or motorcycle each, based on the vehicle’s age and engine capacity.

The subsidy works out to RM30 a month for car owners and RM12 for those with motorcycles. The scheme is only for the peninsula, with RON95 to stay capped at RM2.08 a litre in Sabah and Sarawak.

Hafiz said the announcement on the scheme was a reminder that Pakatan Harapan has yet to introduce policies to help the M40 group since winning federal power last year.

“We aren’t even entitled to Bantuan Sara Hidup,” he said, referring to PH’s Cost of Living Aid, rebranded from the Barisan Nasional-era Bantuan Rakyat 1Malaysia.

The Pakatan administration's new fuel subsidy scheme has angered some middle-income earners enough that they vow to change the government come the next elections. – The Malaysian Insight file pic, October 9, 2019.

Khairul Othman, 44, said the new fuel subsidy should not be limited to the B40 category as M40 folk already pay other taxes.

“It’s not fair. The government thinks we are OK, that our salaries are bigger, but the fact is, we pay taxes, too.

“If you claim that the subsidy is only for those in need, the government should look at others who need it and how they can benefit from it. Not just one particular group,” said the administrator at a private company.

He said he feels upset enough to vote out PH in the next elections.

“If they continue this way, maybe, I won’t vote for them again. It is disappointing.”

Businessman Micheal Ng said he agrees that the poor deserve more help, but this does not mean Putrajaya can sideline others.

“It is a good programme. The cost of living is high, fuel is expensive. It’s better if the government can think of a plan that also helps the middle class.

“Maybe a rebate, so that we don’t feel we just pay taxes without getting anything back.”

Civil servant Nadia Mohamad, meanwhile, said subsidies should be given directly to the needy, but added that she could not help worrying that her expenses will go up.

“Living in the city, our expenses are already higher than those living in rural areas,” said the 35-year-old.

Bank employee Ilham Hamka did not hesitate to say the PH government has already lost his vote over the new fuel subsidy, as well as other promises it has not kept.

“I’ve had it with PH. One-term government. My friends, too, do not agree with their policies.

“They said they want to abolish toll and lower the price of fuel, but it keeps increasing.” – October 9, 2019.


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Comments


  • The poor gets subsidies & aids, the super rich gets protection, the middle class gets squeezed at both ends.

    Posted 6 years ago by A Subscriber · Reply