The Malaysian government will announce the T15 income classification in the first quarter of next year, economy minister Rafizi Ramli said, reported New Straits Times.
Persons classified as not eligible for targeted subsidies, including for RON 95 petrol, will have the opportunity to appeal the decision, Rafizi said in a response during minister’s question time in the Dewan Rakyat.
“The eligibility determination and individual assessments will be managed by the economy ministry, while the finance ministry will oversee the implementation of targeted RON95 subsidies at petrol stations,” Rafizi said.
Towards the end of October, prime minister Datuk Seri Anwar Ibrahim said that the Department of Statistics Malaysia (DOSM) is still working on the definition of who would be considered to be in the T15 bracket before the government lifts the blanket subsidy on RON 95, which is presently priced at RM2.05 per litre.
High-income individuals, referred to as the aforementioned T15, will be classified in relation to the basic expenses for decent living (Perbelanjaan Asas Kehidupan Wajar, or PAKW) specific to each locality, Rafizi said. The definition of T15 will take into account a person’s location as well as net disposable household income, Rafizi said in October.
The looming end to blanket subsidy for RON 95 petrol grabbed headlines from Budget 2025 tabled in October, and while there wasn’t a firm definition of the T15 income group, many searched and found statistics pointing towards a household income ranging from RM12,000 to RM13,000 as the point where a Malaysian household would be classified T15. In a dual-income household, this would be incomes of RM6,000 each.
Meanwhile, MCA president and former transport minister Wee Ka Siong called on the government to consider the eligibility for the subsidy to be based on the type and value of cars driven instead of an individual’s income. Beyond the matter of who should qualify, there is also the matter of the mechanism(s) that should be used – we look at the pros and cons of each, here.
Looking to sell your car? Sell it with Carro.