KUALA LUMPUR: A government backbencher has urged the government to reassess and realign the classification of the top 15 per cent (T15) income group, which is set to be excluded from several government subsidies next year.
Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) said the T15 group should not be penalised in this manner as the group also contributes significantly to the national economy.
He also said that classifying those earning RM13,295 per month and above as extremely wealthy was unfair.
"Based on household income data from the Household Income Survey (HIS) and Household Expenditure Income Survey (HIES) by the Statistics Department as of 2022, the top 15 per cent of earners in Malaysia have incomes starting from RM13,295.
"This means that both corporate figures and millionaires fall into this category, as do a husband and wife who are both teachers at DG48 grade or civil servants at M48 level. Is this fair?
"When issues like this are handled poorly, many people suffer, so a workable and pragmatic approach is needed.
"The T15 group will also see a gradual reduction in education and healthcare subsidies. It is unfair to penalise this group by removing these benefits," he said while debating the 2025 Budget in the Dewan Rakyat today.
Wee added that the government has also confused the public by reverting to using income as a criterion for subsidies, despite previously pledging not to do so.
He added that the government's policy implementation, especially with the Budi Madani formula for diesel and petrol subsidies, was inconsistent.
"The government previously stated that income would not be used as a threshold, so why are they now using the T15 group for subsidy implementation?
"We are confused, and so are the public. The Economy Ministry had announced that subsidies would be based on net disposable income and locality.
"This approach penalises the T15. They are deemed ineligible for RON95 fuel subsidies, yet the Budi Madani criteria use an income threshold of RM100,000 per year or RM8,333 per month.
"Why is there no consistency in policy implementation?" he said.
Wee also called for the government to introduce a mechanism to identify the T15 group if two pricing tiers are implemented for RON95 fuel.
"Introducing different prices could cause confusion and inefficiency at petrol stations, affecting both consumers and operators.
"If the government can already identify the T15 group, why not impose a fuel levy when they renew their road tax and introduce a petrol levy on new vehicles valued at RM300,000 and above?
"This would allow a single subsidised petrol price at stations while recovering costs from the T15 group in a more straightforward manner."
During the 2025 Budget announcement last Friday, Prime Minister Datuk Seri Anwar Ibrahim said subsidies for the T15 group would be gradually reduced, with the savings used to improve infrastructure for boarding schools and public universities.
He also announced that a targeted subsidy plan for RON95 fuel would be introduced by mid-next year, with the savings reinvested for the benefit of the public.