Govt To Determine T15 Classification In Early 2025, Ineligibility For RON95 Subsidies

The Malaysian government is set to unveil the T15 income classification in the first quarter of next year, according to Economy Minister Rafizi Ramli, as reported by the New Straits Times. This classification will determine eligibility for targeted subsidies, most importantly including RON 95 petrol, and those deemed ineligible will be allowed to appeal the decision.

Rafizi explained in the Dewan Rakyat that the Economy Ministry will oversee eligibility assessments and determinations, while the Finance Ministry will manage the implementation of targeted RON 95 subsidies at petrol stations.

Currently, the Department of Statistics Malaysia (DOSM) is working to define the T15 income group. Prime Minister Datuk Seri Anwar Ibrahim previously stated in October that this classification is necessary before phasing out the blanket subsidy on RON 95 petrol, which is priced at RM2.05 per litre.

The T15 classification will be based on the basic expenses for decent living, or ‘Perbelanjaan Asas Kehidupan Wajar’ (PAKW), with factors like locality and net disposable household income taken into account.

Preliminary estimates suggest that households earning between RM12,000 and RM13,000 monthly could fall under this category, with dual-income households potentially classified as T15 if both individuals earn RM6,000 each.

The impending subsidy changes have sparked public discussion, to say the least, with concerns surrounding both fairness of eligibility criteria and implementation mechanisms. MCA President and former Transport Minister Wee Ka Siong proposed using vehicle type and value as subsidy qualifiers instead of income.

The shift to targeted subsidies is a key highlight of Budget 2025 and signals the government’s intent to improve fiscal efficiency while addressing the needs of lower-income groups, if at the possible expense of popularity among the people.