PETALING JAYA, December 20 — The Malaysian government will unveil the T15 income classification by mid-2025, which will identify individuals excluded from receiving targeted subsidies. Economy Minister Rafizi Ramli announced that the T15 classification is expected to be finalized in the first half of 2025, allowing time for an appeal mechanism to be set up for those excluded from subsidies. The government intends to implement the classification before applying the targeted RON95 fuel subsidies at petrol stations.
The T15 system, part of a two-tier price scheme for RON95 fuel, aims to ensure that the wealthiest 15% of the population pays the market rate for fuel, while the remaining 85% will continue to benefit from subsidized prices. This move is projected to save the government approximately RM8 billion annually. Rafizi noted that the T15 classification would likely be based on locality rather than a national income standard, as in previous policies.
The government’s decision to remove certain subsidies for the T15 income group has raised questions about which households will be considered for exclusion. Following the announcement of the 2025 budget, several parties have called for further clarification on the classification criteria to ensure subsidies are effectively targeted to the right groups.
