SEBERANG PERAI, November 3 – Prime Minister Datuk Seri Anwar Ibrahim has defended the government’s decision to cut subsidies for Malaysia’s top 15% income group (T15) under Budget 2025, saying it will redirect resources to benefit 85% of Malaysians, particularly those in the B40 and M40 income groups. Anwar emphasized that this subsidy rationalization is crucial to ensure fairness, redirecting funds to those who genuinely need support.
Speaking at the National Hawkers and Small Traders Carnival 2024, Anwar criticized the Opposition for defending the T15, stating that they were overlooking the needs of the low-income groups and small businesses. He highlighted that those with substantial incomes, some even earning up to RM300,000 monthly, should not receive subsidies intended to support those with lower incomes.
“We are not increasing taxes, just adjusting subsidies to ensure they don’t become ‘handouts’ for the ultra-rich,” Anwar explained, adding that wealthier households with high electricity usage will pay market rates, rather than benefiting from taxpayer-funded subsidies. He assured that the rationalization plan will consider household spending and dependents, aiming to avoid burdening those outside the T15.
