Amir Hamzah Azizan, Malaysia's Finance Minister, discusses the debate over the country's income classifications and targeted petrol subsidies, emphasizing the need to consider global oil supply and the impact on fuel supply and businesses.
GEORGE TOWN: Finance minister II Amir Hamzah Azizan says the Cabinet has yet to discuss any new definition for the T20 category, amid debate over whether the long-standing B40, M40 and T20 classifications reflect Malaysia ’s economic realities.
Amir said the government is focused on improving the delivery of subsidised fuel, including the mechanism used for the Budi95 initiative.
“Last week, the Cabinet did not discuss any classification, whether regarding T20 or any other ‘T’. “I do not know how it arose, maybe from public discussion,” he told reporters after visiting SK Tan Sri Awang Had Salleh in Balik Pulau today. Debate over the classifications has intensified amid discussions on targeted fuel subsidies.
On Friday, chief statistician Uzir Mahidin said the country’s household income classifications – B40, M40 and T20 – reflect the purchasing power of Malaysians and that the classifications were based on detailed survey data capturing income distribution across different population segments. Earlier, Prime Minister Anwar Ibrahim was reported as saying the government would finalise a proposal to review petrol subsidies for high-income earners, subject to further study.
Umno secretary-general Asyraf Wajdi Dusuki urged the government to exercise caution in implementing targeted petrol subsidies, saying gross household income alone is no longer a sufficient indicator of a family’s actual financial capacity, particularly in major cities. On calls by media groups, the National Union of the Teachers Profession, and hawkers to restore the Budi95 quota from 200 litres to 300 litres, Amir said the government had to take into account the pressure on global oil supply following the conflict in the Middle East.
Despite this, he said, the country had not faced any fuel supply disruption, thanks to domestic oil production and the role played by Petronas and other oil companies. He said the government’s priority was to ensure that fuel supply remained sufficient, as shortages could lead to bigger problems for businesses and consumers.
Amir said fuel subsidies had risen sharply since March, from about RM700 million a month previously to as high as nearly RM7 billion a month, before easing to between RM3.5 billion and RM4 billion a month recently. He said the Budi95 quota was reduced from 300 litres to 200 litres because average usage under the system was about 98 litres a month. The reduction would help save money, lower the risk of misuse, and encourage more prudent fuel consumption.
Amir also said the government understood that some businesses were affected by higher costs, and had set aside RM15 billion in support for small and medium enterprises, including loan guarantees, Bank Negara Malaysia facilities, and micro-financing schemes.
Finance Minister Cabinet Discussions T20 Category Debate Long-Standing Classifications Reflect Malaysia's Economic Realities Targeted Fuel Subsidies Income Classifications Purchasing Power Malaysia Income Distribution Household Income Global Oil Supply Medium Enterprises Support For Smes Businesses Consumers Prime Minister Anwar Ibrahim Umno Secretary-General Asyraf Wajdi Dusuki Global Oil Price Conflict In The Middle East Petronas National Union Of The Teachers Profession Hawkers Budi95 Quota Global Oil Market Middle East Petrol Subsidies Pressure On Fuel Supply Shortages Finance Minister II Amir Hamzah
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