Sin Chew daily has recently revealed a new form of fuel subsidy that has been planned for Malaysia that is set to start around September 2014. The new form of subsidy plan will effect commercial and non-commercial vehicle.
This will indirectly influence the sale of fuel prices in Malaysia. Based on the daily, the new subsidy scheme will be based on drivers salary and car engine capacity. Drivers with salary RM 5,000 while driving vehicle engine smaller than 2,000 cc will only be able to fully enjoy fuel subsidy.
The table below summarises the subsidy that one can receive based on income group.
| Salary | Montly Subsidy |
|---|---|
| RM 5,000 and 2,000cc below | Full subsidy |
| RM 5,000 to RM 10,000 | 300 Litres |
| RM 10,000 and above | No subsidy |
If a motorist finishes his or her fuel subsidy of the month he will have to pay the market price for the fule. According to the daily citing sources from Domestic Trade and Consumer Affairs ministry (KPDNKK) , the implementation will perhaps utilises the function of upgraded Mykad as part of the method to identity the eligible fuel subsidy. A fuel card is also suggested as an alternative however the detail has not been confirmed. JPJ will be collecting information such as salary and income tax statement when issuing fuel subsidy to motorist.
Subsidy rationalisation has been a part of government’s plan to curb spending and improve fiscal deficit. According to Pemandu goverment’s (Performance Management Delivery Unit) every 20 cents increase in petrol price and diesel alone will help the government save RM 3.3 billion in 2014.
