Kuala Lumpur, November 04, 2025 – The Europe Today: Prime Minister Datuk Seri Anwar Ibrahim acknowledged the challenges faced in determining the income threshold for Budi95 eligibility, explaining that the government’s approach to the targeted fuel subsidy aims to benefit approximately 85% of Malaysians.
Speaking during a session in the Dewan Rakyat on Tuesday (Nov 4), Anwar said the difficulty lies in identifying an equitable threshold for the top-income group, known as T15. “If we initially set a target of RM13,000 per month, then increase it to RM20,000 per month, it still places pressure on the upper-middle class,” he noted.
He added that although the government considered setting the threshold as high as RM50,000 per month, the number of individuals affected at that level would be very small, while the cost of enforcement would be substantial. “Therefore, our current approach is to implement this policy first. If necessary, once the system becomes more robust, we can refine it to include only truly high-income individuals or those owning luxury vehicles,” Anwar explained.
Addressing concerns over the estimated RM2.5 billion savings from fuel subsidy rationalisation, the Prime Minister rejected the notion that the figure was lower than projections made by the World Bank. “I disagree because we are assessing subsidy rationalisation as a whole. From diesel, we have saved RM5 billion, largely by curbing smuggling. From electricity, savings reached RM6 billion, while floating pricing for chicken and eggs has generated RM1 billion each,” he said.
Anwar emphasised that these savings were sufficient for the government to implement the reforms cautiously, ensuring that the measures do not overburden the public. The government expects total savings from subsidy rationalisation to range between RM2.5 billion and RM4 billion.
Responding to a supplementary question from Suhaizan Kaiat (PH–Pulai) regarding the projected savings for 2026, Anwar said the government is targeting a minimum of RM2.5 billion. He also confirmed that the needs of the differently abled community will be taken into consideration under the fuel subsidy scheme, with a dedicated application form to be introduced for their benefit.
