Malaysia
PM Anwar: Govt reviewing income threshold for subsidy cuts, exclusions may target T10 earners instead of T15
Prime Minister Datuk Seri Anwar Ibrahim said the government is still determining the income threshold for high-income earners who may be excluded from certain subsidies next year, potentially limiting the exclusion to the top 10 per cent (T10) instead of the top 15 per cent (T15) of earners. — Bernama pic

KUALA LUMPUR, Oct 27 — The government is still determining the income threshold for high-income earners who may be excluded from certain subsidies next year, potentially limiting the exclusion to the top 10 per cent (T10) instead of the top 15 per cent (T15) of earners.

Prime Minister Datuk Seri Anwar Ibrahim said authorities are reviewing the criteria and may adjust it if the T15 threshold proves unsuitable, according to a New Straits Times report.

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"Some are upset because it’s T15... Who said T15 is RM12,000?” he asked, adding "It hasn’t been decided because we want to see if T15 can afford it.”

"If they [T15] cannot afford it, we might make it T10, or raise the income threshold for T15 to something higher than RM12,000, possibly RM15,000 or RM18,000 a month,” the prime minister said at the Perak PKR Convention at the Kinta Riverfront Hotel in Ipoh.

Anwar said the government aims to ensure any subsidy exclusions do not burden those with lower incomes.

"Some are defending the T15 category despite some among them earning RM100,000 or even RM1 million a month. Do we want to defend that?”

"If their income is low, we will take it into consideration as we do not want to burden the people.

"The important thing is that at least 85 per cent of Malaysians would not be affected,” he added, noting that the government’s goal is to protect at least 85 per cent of the population from being affected by subsidy changes.

Perak Menteri Besar Datuk Seri Saarani Mohamad, Perak DAP chairman Nga Kor Ming, PKR vice-chairman Chang Lih Kang and Parti Amanah Negara vice-president Datuk Seri Mujahid Yusof Rawa also attended the PKR event.

During the tabling of Budget 2025 on October 18, Anwar said gradual subsidy reductions for the T15 would allow the government to redirect savings to support boarding schools and public universities.

On October 21, Economy Minister Rafizi Ramli said that the government’s plan to roll back petrol subsidies in mid-2025 is critical for fiscal reform, saying that the country’s fiscal health depends on subsidy cuts and tax base expansion.

He later clarified that the T15 category’s definition remains under review.

Rafizi said it would not be based solely on gross household income but also consider factors like locality and household spending.

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