Sim says the proposal failed to take into account Sarawak’s vast geographical size and the long travelling distances between towns and cities.
KUCHING (May 14): The federal government’s proposal to tighten the RON95 targeted fuel subsidy mechanism from the currently discussed 200 litres to between 150 and 175 litres monthly would be unfair to Sarawak, said Datuk Sim Kiang Chiok.
The Sarawak Housing and Real Estate Developers Association (Sheda) advisor said the proposal failed to take into account Sarawak’s vast geographical size and the long travelling distances between towns and cities.
He said many Sarawakian families rely heavily on private vehicles for work, education, healthcare and business purposes.
“A one-size-fits-all policy based on peninsula urban travel patterns does not reflect the realities of East Malaysia,” he said in a statement.
Sim also expressed concern that lowering the monthly fuel subsidy threshold to 150 litres could affect a larger segment of Malaysians already struggling with rising living costs.
Citing recent reports, he said around 80 per cent of Malaysians consume less than 200 litres of petrol monthly, while about 60 per cent consume less than 150 litres.
“This means that reducing the threshold from 200 litres to 150 litres could potentially alienate a much larger segment of ordinary voters who are already struggling with rising living costs,” he said.
He added that the T20 taxpayers should not be unfairly penalised as they remain among the biggest contributors to national income tax and continue to play an important role in driving domestic consumption, investment and economic growth.
Not every T20 household could be considered wealthy due to increasing education, healthcare, housing and living expenses, he noted.
“With Malaysia benefitting from strong revenues from oil and gas exports, the government should utilise these windfalls to ease inflationary pressures, not burden hardworking taxpayers further,” he said.
Sim urged the government to adopt a fair and practical approach while remaining mindful that the affected groups are also voters whose concerns should not be ignored.
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