SUPP Youth chief calls for clear plan before RON95 subsidy rationalisation

SIBU (July 2): Sarawak United People’s Party (SUPP) Youth chief Councillor Kevin Lau has urged the federal government to finalise a concrete, comprehensive, and well-prepared plan before implementing the RON95 petrol subsidy rationalisation.

He stressed that the details must be clearly communicated prior to its rollout to avoid unnecessary confusion and burden among the public.

Responding to comments by Finance Minister II Datuk Seri Amir Hamzah Azizan , Lau said that although the government is confident in implementing the policy in the second half of the year, the lack of details remains a major concern.

Apart from the announcement that the MyKad identification system will be used for subsidy distribution, no further information has been released.

“Who exactly will be affected? Will it be the B40, M40, T20 or other related groups? If the government plans to classify the subsidy based on income groups, then clear criterion must be shared with the public,” he said.

Lau also questioned whether the government has effectively utilised data collection through previous initiatives such as the Central Database Hub (Padu) system and its proposed integration with Digital Education Policy and Madani Subsidy Assistance (Budi Madani).

“Previously, the government made an aggressive push for data collection via Padu, saying it would be integrated with Budi Madani. Has this data actually been utilised to support subsidy implementation?

“If not properly implemented, the policy could end up placing burden on the people.”

Lau, who is SUPP Bawang Assan chairman, also mentioned that the people are still adapting to the newly implemented e-invoicing policy and the expansion of scope for Sales and Services Tax (SST).

He stressed that the people should be given some breathing space, and introducing the subsidy rationalisation in the second half of the year could further burden the public.

He also questioned whether the government could guarantee that the subsidy rationalisation would benefit all intended target groups.

“Prime Minister Datuk Seri Anwar Ibrahim emphasised that RON95 subsidy rationalisation will not affect low-income groups.

“But what about the middle-income group? How will they be addressed? All groups are facing economic pressures – are they not going to be affected too?”

He noted that the vast majority of road users rely on RON95 petrol, making it a necessity for most people.

He said although the previous targeted diesel subsidy policy did not include East Malaysia, there were still indirect effects, particularly with increased logistics and transportation costs.

“Additionally, sectors such as taxi drivers, e-hailing drivers, and food delivery riders will also be impacted by changes in the RON95 petrol policy.

“In Sarawak, transportation costs already make the cost of living higher than in Peninsular Malaysia. Coupled with the rising prices of goods, people are facing significantly more economic pressure,” he added.