MIDF: Fuel subsidy shift likely by year-end
Bernama
Business
30 May 2025

KUALA LUMPUR: MIDF Amanah Investment Bank Bhd anticipates the implementation of RON95 fuel subsidy rationalisation may be pushed to the fourth quarter of 2025 due to unresolved issues such as eligibility and the delivery mechanism.

The investment bank said the potential delay in RON95 fuel subsidy rationalisation to the second half of 2025 (2H2025) is expected to offer temporary relief to consumers, supporting private consumption amid stable inflation.

Recently, Finance Minister II, Datuk Seri Amir Hamzah Azizan, said the rationalisation of RON95 fuel subsidies will be implemented in the 2H2025.

He added that the Finance Ministry will continue with the subsidy rationalisation process, but the current focus is on identifying the groups that will be eligible to receive the subsidy.

MIDF Amanah Investment Bank Bhd said the potential delay in RON95 fuel subsidy rationalisation to the second half of 2025 (2H2025) is expected to offer temporary relief to consumers, supporting private consumption amid stable inflation.

“While the Finance Ministry targets a 2H2025 rollout, we anticipate implementation may be pushed to the fourth quarter of 2025 due to unresolved issues like eligibility and the delivery mechanism,” it said in a note on Thursday.

The investment bank also said that consumers are unlikely to face any significant price pressure via pass-through mechanisms.

However, MIDF Amanah said inflationary pressures could emerge later in the year, driven by the potential pickup in price pressure stemming from subsidy reforms and the higher utility costs for businesses.

The investment bank also said that the gap between the Producer Price Index (PPI), which measures the price changes at the producer level, and the Consumer Price Index (CPI) continues to widen further, with the CPI continuing to grow modestly by 1.4 per cent year-on-year in April 2025.

On Wednesday, the Statistics Department Malaysia said April 2025’s PPI contracted by 3.4 per cent year-on-year.

It was the second month of decline and the sharpest drop since June 2023.

The weaker price pressure was mainly attributable to the steeper double-digit price decline in the mining sector, mainly due to a sharper drop in crude petroleum prices while natural gas prices saw a more moderate decline. – BERNAMA

Source: https://www.bernama.com/en/news.php/?id=2428727

So Padu was a failure?

The garmen should had subsidized Solar panel and EV, made it as cheap as CCP.

So that excess fuel can sell to overseas at harga yahoodee

So, Economy Minister had years to work on it, fails then people praise him as best minister.

Typical sohais.

Aiya, bear for another 1/2 yr lo. I know stopping halfway for toilet pee break during daily drive to office is very ma fan one..

Whats the point if need manual input kek.

The data itself already stale

Then Q2 26, then Q4 26, then Q2 27, then Q4 27 and it goes on until forever..

Say already using IC wont work at all. You cannot expect the cashier to do thumb print verification each time. Its stupid anyway.

December 2025. Delay 2027.

Kek.

After all oil price will be trend down from July onwards.

Can't just every month bank in subsidi money to IC number & bank account that registered to JPJ vehicle?

Truth is, they have no solid idea how to implement the targetted subsidies. That’s why it would drag forever.

Best solution is just to remove the petrol subsidies altogether and increase the annual allowance for the B40 appropriately (if they still want to “subsidize”).

2099 still kicking it on to Q4

can someone please clarify?… if the majority won’t feel the difference, means there’s no need to change the present system…
just think how to settle the T5 issue!.. am i right to think this way?

Get your subsidy card from JPJ or POS Malaysia.....

There is many issue cannot settle because they cannot put a rules mercedes cannot use Ron95. The only way is everyone pay the same price. But that will cause food price and many other things increase price terribly.

Just give tax rebate thru annual tax filing?
Then many people will be encouraged to do tax filing, no?