The ongoing discussion about targeted fuel subsidies in Malaysia has sparked a divisive response from the public. Many argue that the middle-income group (M40) will bear the brunt of these changes, while the lower-income group (B40) will remain relatively unaffected, and the higher-income group (T20) can absorb any additional costs.
Target subsidies in Malaysia
These subsidies, implemented through the Central Database System (Padu), consider various factors beyond income to determine eligibility. While the T20 is expected to weather the removal of blanket fuel cost reduction, the M40 may experience reduced disposable income. The government plans a gradual rollout with additional cash assistance.
Some users state that these targeted subsidies will have the correct information of users in the country. This will make the distribution of wealth to those in need more efficient. However, there still are plenty who vehemently disagree with the idea.