OPPOSITION Leader Datuk Seri Hamzah Zainudin and Bagan MP Lim Guan Eng urged the government to reconsider its timeline for implementing fiscal reforms during Monday’s Special Parliamentary Sitting, warning that such moves could further strain household and business finances.
Hamzah cautioned that removing subsidies for RON95 petrol — the primary fuel for most private vehicles — could exacerbate the cost-of-living burden in light of economic uncertainties triggered by new US trade tariffs.
“We must postpone any policy changes, especially fiscal measures that could put pressure on costs, weaken business sentiment, and ultimately burden consumers,” Hamzah said in his address.
“I’ll give an example — the planned increase in RON95 prices this July when subsidies are lifted. The government should consider postponing this, if at all possible. The same goes for the planned electricity tariff hike in July,” he added.
Lim echoed the concern, warning that the contribution of small and medium enterprises (SMEs) to Malaysia’s GDP could decline by up to 35 percent if no mitigating action is taken.
He called for a delay in several fiscal initiatives, including tax hikes, electricity tariff increases, and the rollout of e-invoicing, to ease pressure on businesses.
“In addition, the floating of RON95 prices to match market rates should also be delayed. The recent announcement by the Deputy Finance Minister to defer the expansion of the Sales and Services Tax (SST) scope from 1 May 2025 is welcome,” said Lim.
He also urged the government to reconsider proposals requiring a two percent Employees Provident Fund (EPF) contribution from employers of foreign workers and suggested the central bank lower the Overnight Policy Rate (OPR) from three percent to two percent. - May 5, 2025
