KUCHING: The proposal to further tighten the RON95 targeted fuel subsidy threshold from 200 litres to between 150 and 175 litres per month has drawn concern over its potential impact on middle-income Malaysians and motorists in East Malaysia.
The move, reportedly under consideration by the federal government, has raised questions about whether the revised cap would place greater pressure on households already facing rising living costs.
Sarawak Housing and Real Estate Developers’ Association (SHEDA) advisor Datuk Sim Kiang Chiok said recent estimates suggest that about 80 per cent of Malaysians currently consume less than 200 litres of petrol a month while around 60 per cent fall below 150 litres.
He said lowering the threshold would therefore capture a significantly larger group of everyday users.
“Reducing the limit to 150 litres will affect a much wider group of Malaysians who are already dealing with rising living costs.”
He stressed that the impact would be more pronounced in Sarawak, where long-distance travel between towns remains a daily necessity for many residents.
He said commuting for work, education, healthcare and business often leads to higher fuel usage that is unavoidable compared to urban centres in Peninsular Malaysia.
“A one-size-fits-all policy does not reflect the realities in Sarawak, where people have no choice but to travel longer distances for basic needs.”
He also raised concerns over the treatment of T20 taxpayers, saying they should not be unfairly penalised despite their contribution to national revenue.
He noted that many households within the income group are also coping with higher costs of living, including housing, education and healthcare.
With Malaysia continuing to benefit from strong oil and gas revenues, Sim said the government should consider using national income to ease inflationary pressures rather than tightening fuel support.
“These are also voters whose concerns will shape the country’s future direction, and their voices cannot be ignored.”
