Earlier this November, the Minister of Economic Affairs of Malaysia, Rafizi Ramli announced that the new targeted petrol subsidy mechanism will be implemented starting in 2024.
According to a report from Berita Harian, during a Q&A session in the parliament, there are three ways in which the restructuring of petrol and diesel subsidies will be carried out starting next year.
Here’s how the new petrol subsidy mechanism for 2024 works in three categories:
How The New Targeted Petrol Subsidy for 2024 Works
Individual Net Income
Net personal income – this is the amount that remains after your statutory deductions such as EPF/SOCSO and income taxes. Bear in mind this does not include any deductions from any of your outstanding loans and insurances.
This method ensures that the government can provide petrol subsidies in Malaysia fairly. The logic is fairly simple – individuals with lower incomes may receive a higher amount of subsidies while those with higher incomes may receive a lower amount.
Household Net Income
This second mechanic will consider all household members’ net income (after your statutory deductions). This includes your income from your current employment in addition to all social, welfare, and financial schemes and assistance received.
Combined Household Net Income
The third mechanic involves a combination of both individual and household income. This mechanic includes using subsidy cards that provide financial support to those in need.
By implementing this, it will form a balanced system where the needs of individuals and households can be addressed more specifically.
Are You Prepared for The Subsidy Program in 2024?
This targeted petrol subsidy program is expected to be gradually implemented starting in January after the Pangkalan Data Utama (PADU) is opened to the public. Currently, the restructuring of petrol subsidies will be carried out in Peninsular Malaysia first.
In conclusion, with this new targeted petrol subsidy mechanism and the implementation of the PADU system, the government can ensure that these subsidies will be enjoyed by those who truly need them. This program is also seen as the government’s effort to ensure fairness in income distribution, aiming to narrow the economic gap between low and high-income groups.
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*This article has been produced with the assistance of Artificial Intelligence (AI) following a clear narrative provided by our talented writers. We hope you enjoy reading it!
