PETALING JAYA, May 13 — Yeo Bee Yin has urged the federal government not to rush plans to remove RON95 fuel subsidies for higher-income groups.
Warning the move could trigger inflation and weaken domestic spending during ongoing global economic uncertainty.
She said many individuals in the T15 and T20 categories are business owners and employers who may pass rising fuel and operational costs on to consumers.
Creating a secondary inflation wave that would also affect lower-income households. Yeo stressed that targeted subsidies should only be implemented after the government proves.
The policy would not result in economic losses or inflationary pressure. She cautioned that reducing subsidies during the current Middle East-linked economic crisis.
Could hurt the retail, hospitality and service sectors by reducing private consumption. Yeo also questioned the fairness of using household income alone to determine subsidy eligibility.
Arguing it ignores urban living costs and financial commitments faced by middle-class families, particularly in Kuala Lumpur and Selangor.
