By Bernie Yeo
4 hours ago
MCA has expressed concern over a proposal to reduce the subsidised RON95 petrol quota under the BUDI95 programme to 150 litres per month, warning that the move could increase living cost pressures on urban households and raise operating costs for small and medium enterprises (SMEs).
Responding to earlier remarks by Deputy Finance Minister Liew Chin Tong regarding the proposal, the party’s Economic and SMEs Affairs Committee chairman Datuk Lawrence Low said the government should clearly explain the basis and feasibility of the proposed reduction before making any final decision.
He said a 150-litre monthly quota would be insufficient for many dual-income families, particularly those living in urban areas such as Kuala Lumpur, the Klang Valley, Johor Bahru and Penang, where long daily commutes are common.
“In many urban households, both spouses work and owning two cars is often a necessity rather than a luxury,” he stated.
Low noted that while the government has encouraged greater use of public transportation, improvements to connectivity and coverage remain necessary before people can realistically reduce their dependence on private vehicles.
He said issues such as weak last-mile connectivity, inconsistent service frequency and inconvenient transfers continued to discourage wider public transport usage.
“As the government pushes for subsidy rationalisation and greener transportation policies, it must first strengthen the efficiency and accessibility of public transport systems,” he explained.
Among the improvements needed, he said, were better feeder bus services, expanded park-and-ride facilities, more frequent services and wider transport network coverage.
Low also warned that reducing the fuel subsidy quota would affect not only households but also the SME ecosystem, particularly businesses and workers that rely heavily on daily travel.
“Fuel is not a luxury item for SMEs, sales personnel, delivery workers and insurance agents. It is a basic operating cost necessary for them to earn a living,” he said.
He went on to question the reliability of data cited in support of the proposal and urged the government to clarify how the figures were calculated.
Low noted that during the previous subsidy adjustment, when the quota was reduced from 300 litres to 200 litres, Prime Minister Datuk Seri Anwar Ibrahim had stated that 90% of Malaysians would not be affected, a claim that drew public scepticism.
He said the latest figures suggesting that 60% of Malaysians consume less than 150 litres monthly should be properly explained, including what the government meant by people being “unaffected”.
“Even if the data is accurate, the impact of fuel subsidy reductions cannot be assessed solely based on individual petrol consumption,” he reckoned.
Low said higher fuel costs would eventually increase transportation, logistics and service costs, which would ultimately be passed on to consumers through higher prices.
He warned that implementing stricter subsidy measures at a time when businesses and households were already struggling with rising costs would place additional strain on the economy.
“What the people fear is not just the 150-litre quota itself, but whether this signals further reductions in fuel subsidies in the future,” he added. ‒ May 13, 2026
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