Malaysia

RON95 subsidy to be means-tested using income and asset data

Luxury car and property ownership among criteria in subsidy rationalisation plan, says Anwar

Updated 1 year ago · Published on 21 Aug 2025 9:48AM

RON95 subsidy to be means-tested using income and asset data
Eligibility framework would be based on multiple data sources, including income declarations from the Inland Revenue Board (IRB) - August 21, 2025

OWNERSHIP of luxury vehicles and property, along with monthly income, will be key determinants in assessing eligibility for Malaysia’s RON95 fuel subsidy once the rationalisation scheme is implemented, the government has confirmed.

Prime Minister Datuk Seri Anwar Ibrahim said the eligibility framework would be based on multiple data sources, including income declarations from the Inland Revenue Board (IRB) and statistics from the Department of Statistics Malaysia’s Household Income Survey (HIS).

"This ensures a more comprehensive approach in targeting assistance to those who genuinely need it. Several additional criteria will also be taken into account, such as ownership of property and luxury vehicles, alongside monthly income, before a final decision is made and announced by the end of September," Anwar, who also serves and Finance Minister, said in a written reply to Parliament.

He was responding to a question from Datuk Seri Hamzah Zainuddin (PN–Larut) on the timeline and mechanism for the RON95 rationalisation.

Anwar assured that the majority of the population would not be affected by the changes.

"At least 85 per cent of Malaysians will not be directly affected by the rationalisation," he said, emphasising that the exclusion would primarily apply to non-citizens and the truly affluent.

The government has committed to implementing targeted subsidies for RON95 petrol in the second half of 2025, as part of broader fiscal reforms aimed at narrowing leakages and ensuring aid is directed to those most in need. - August 21, 2025

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