KUALA LUMPUR: The government does not intend to allow vehicles owned by non-citizens to enjoy the RON95 subsidy, stated the Ministry of Economy. This decision aligns with the government’s aim to bolster the country’s fiscal position as outlined in the 12th Malaysia Plan (12MP).
According to BERNAMA News Agency, the implementation of the RON95 subsidy in 2025 is expected to yield savings of RM3.6 billion in government expenditure. This represents a 21.9 percent reduction in total subsidy expenditure, provided the subsidies are restricted to the B85 group and citizens. By ensuring the targeted RON95 subsidies exclude non-citizens, the government forecasts additional savings of RM0.3 billion, accounting for 2.0 percent of the subsidy budget.
The ministry provided this information in a written reply on the Parliament website, responding to a query from Abdul Latiff Abdul Rahman (PN-Kuala Krai) regarding the proposal to permit vehicles registered in Brunei to utilize RON95 in Malaysia. The government plans to in
itiate the targeted RON95 subsidy scheme by mid-2025, covering 85 percent of the population. Eligibility will be determined based on the Basic Expenditure of Decent Living (PAKW) of households.