THE MADANI government is expected to soon finalise a proposal to scale back fuel subsidies for higher-income households, with Prime Minister Datuk Seri Anwar Ibrahim confirming that several models affecting top earners are currently under detailed review.
Anwar said the proposal had been examined for almost a month by a special committee chaired by former Petronas president and chief executive Tan Sri Hassan Marican under the National Economic Action Council (MTEN).
“The proposal has been reviewed by the National Economic Action Council and it has been studied over the past three weeks,” he told reporters after attending a meet-and-greet session with Indian undergraduates at Universiti Malaya in Kuala Lumpur on Sunday.
The Prime Minister said the government had yet to determine which income category would ultimately be affected under the proposed subsidy rationalisation framework.
“However, we have yet to decide whether it will be applied to the T20, T15, T10 or T5 income groups, as we do not want it to impact the upper middle class, for example.
“But in principle, we agree to review the subsidy provided and they are working to finalise it soon, I hope,” he said.
Anwar reiterated: “We have already examined the matter and there have been discussions on whether the review should involve the top five per cent, top 10 per cent, top 15 per cent or top 20 per cent income groups because we do not want it to negatively affect, for example, the upper middle class,” he said.
“So, they are currently studying it. I hope we will be able to finalise it later.”
Anwar was responding to calls by UMNO Youth chief Datuk Dr Muhamad Akmal Saleh for the government to exclude the T20 income group from enjoying blanket fuel subsidies.
The latest review forms part of Putrajaya’s broader efforts to reform Malaysia’s long-standing subsidy system, which has faced criticism for disproportionately benefiting wealthier households instead of being targeted towards lower-income groups.
The government has repeatedly maintained that subsidy rationalisation is necessary to reduce fiscal leakages and strengthen public finances, while ensuring assistance reaches vulnerable Malaysians more effectively.
However, any move involving fuel subsidies remains politically sensitive amid persistent public concerns over inflation, living costs and pressure on middle-income households. - May 10, 2026
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