Lim Lip Eng Warns Against Turning Middle Class Into Government’s “ATM” Over Fuel Subsidy Plan

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Kepong Member of Parliament Lim Lip Eng has urged the government to fully explain its planned RON95 fuel subsidy reform, warning that middle-income Malaysians could be unfairly affected if the mechanism is not clearly defined.

In a statement, Lim said Putrajaya must disclose who exactly will be impacted, how income levels will be assessed, and whether factors such as living costs, dependants, loans and commuting needs will be taken into account.

He criticised the use of broad classifications such as T20, T15, T10 and T5, saying they risk causing unnecessary public anxiety if not properly explained and implemented.

Lim stressed that being classified as “high income” does not automatically mean a household is wealthy, pointing out that many urban families in the Klang Valley still face heavy financial commitments including housing, education and car loans.

He also questioned the effectiveness of the Central Database Hub (PADU), which reportedly cost RM85.27 million, asking whether it would be properly used to ensure a fair and accurate subsidy system.

Lim warned that without a detailed and transparent framework, middle-income groups could end up bearing the brunt of policy changes despite already struggling with rising living costs.

He further cautioned that the middle class should not become the easiest target whenever fiscal adjustments are made.

“Do not turn the middle class into the government’s ATM.”

He added that people who work hard to move up the income ladder should be encouraged, not penalised, warning that such policies could discourage upward mobility.

Lim also called for the immediate release of full details of the subsidy mechanism, including income thresholds, assessment methods, appeal processes and implementation timelines.

He said clarity is essential to avoid public fear and ensure that any subsidy reform is fair, targeted and data-driven.

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