Malaysia

Implementation of RON95 subsidy rationalisation moved ‘slightly’ - Fahmi (UPDATED)

He said the government was still finetuning the mechanism for the targeted subsidy so that it does not have a negative impact.

Updated 1 year ago · Published on 21 Jul 2025 10:47AM

Implementation of RON95 subsidy rationalisation moved ‘slightly’ - Fahmi (UPDATED)
"The government is committed to ensuring that any economic policy changes are not implemented hastily," he said. - July 21, 2025

PRIME MINISTER Datuk Seri Anwar Ibrahim has emphasised that every policy introduced by the government must bring tangible benefits to the people and avoid placing undue burden on the majority, according to Communications Minister and MADANI Government spokesperson Datuk Fahmi Fadzil.

Speaking at a weekly press conference at Parliament today, Fahmi said this principle applied particularly to the planned rationalisation of the RON95 fuel subsidy, which had previously been expected to take effect in the second half of 2025 but remains under review.

“The Prime Minister has expressed his view that he does not want the implementation of policies that will have a negative impact on the majority of the people. The same applies to policies that have not been implemented but have been proposed or mentioned before regarding RON95,” said Fahmi.

He explained that the government is still refining the mechanism to ensure that such policies, like those involving targeted diesel subsidies or changes to the scope of the Sales and Services Tax (SST), are implemented in a manner that avoids knock-on effects on goods and services prices.

In May, Finance Minister II Datuk Seri Amir Hamzah Azizan had stated that the rationalisation of the RON95 subsidy would begin in the latter half of the year, with strict measures to ensure the aid reaches the correct demographic.

On a separate note, Fahmi said the Ukhuwah MADANI Government Leadership Programme, held in conjunction with a retreat for Members of Parliament and ministers, was intended to boost cooperation and camaraderie between Parliament and the administration.

“Apart from fostering the spirit of camaraderie and ukhuwah among members of Parliament from various backgrounds, states and parties, (this retreat also allows) issues regarding preparations for the Parliament session to be discussed, including bills and several matters leading towards the tabling of the 13th Malaysia Plan (MP13),” he said.

Commenting on the recent bus accident in Gerik involving students from Universiti Pendidikan Sultan Idris (UPSI), Fahmi said the Ministry of Transport would soon introduce a more comprehensive enforcement mechanism. He noted that the ministry was examining not only the incident itself but also broader safety concerns relating to bus drivers.

On cultural policy, Fahmi said the newly established National Cultural Council, under the Ministry of Tourism, Arts and Culture, would work closely with other ministries to promote Malaysia’s creative economy.

“This council also touched on the orange economy aspect which involves the creative economy… there are several matters under the jurisdiction of the Ministry of Communications which we will also work on to help implement the views and advice of the National Cultural Council,” he added. – July 21, 2025

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