Govt won't allow non-citizen vehicles to enjoy RON95 subsidy - Economy Ministry

KUALA LUMPUR: The government does not intend to allow vehicles owned by non-citizens to enjoy the RON95 subsidy, said the Ministry of Economy.

The ministry said the move was in line with the government's objective to strengthen the country's fiscal positition as stated in the 12th Malaysia Plan (12MP).

"The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure, or a reduction of 21.9 per cent, to the total subsidy expenditure, if the subsidies are only given to the B85 group and citizens.

"By ensuring that the targeted RON95 subsidies do not involve non-citizens, it will give savings of RM0.3 billion (2.0 per cent) to the government," said the ministry in a written reply on the Parliament website yesterday.

The Economy Ministry said this in response to a question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) on the ministry's proposal to allow vehicles registered in Brunei to use RON95 in Malaysia.

The government will implement the targeted RON95 subsidy in the middle of 2025, covering 85 per cent of the people which will be determined based on Basic Expenditure of Decent Living (PAKW) of households.

-- BERNAMA