The Malaysian government is set to finalize and announce the T15 income classification in the first quarter of 2025, a move that will redefine eligibility for targeted subsidies, including RON 95 petrol.
Economy Minister Rafizi Ramli provided details during a Minister’s Question Time in the Dewan Rakyat on Tuesday (10 Dec).
Rafizi clarified that individuals who have not yet registered in the government’s systems will be given the opportunity to do so, while those already registered but deemed ineligible will be allowed to appeal the decision.
This appeal process aims to ensure fairness and address potential misclassifications as the government transitions from a blanket subsidy to a targeted system.
Ministries to oversee subsidy implementation
The eligibility determination and appeals process will be managed by the economy ministry, while the finance ministry will oversee the operational rollout of targeted RON 95 subsidies at petrol stations.
Targeted subsidies for T15
The discussion on targeted subsidies gained momentum following an October announcement by Prime Minister Datuk Seri Anwar Ibrahim.
He noted that the Department of Statistics Malaysia (DOSM) was working on defining the T15 income group before implementing subsidy cuts.
Under this new system, 85% of Malaysians—those who fall within specific income brackets—will continue to benefit from subsidized fuel prices.
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Rafizi elaborated that the classification would not rely solely on income but would also consider basic expenses for decent living (Perbelanjaan Asas Kehidupan Wajar, or PAKW), tailored to each locality.
Factors such as net disposable household income and the cost of living specific to a person’s region will play a significant role in determining T15 eligibility.
