Umno Youth is set to table a motion at the party’s upcoming Supreme Council meeting, proposing that fuel subsidies for the T20 income group be removed as part of efforts to move away from blanket subsidy policies.
Its chief, Dr Muhamad Akmal Saleh, said the shift towards more targeted subsidies is necessary amid global economic uncertainty, arguing that government savings should instead be redirected to support lower-income groups.
He said wealthier Malaysians would not be significantly affected by the removal of fuel subsidies, as they are financially capable of absorbing the additional costs. In contrast, he stressed that any savings generated could make a meaningful difference to B40 and M40 households.
Akmal explained that the proposal suggests reallocating subsidy benefits currently enjoyed by the T20 group back to those in the lower and middle income brackets, particularly for essential living costs such as fuel.
He added that under the current structure, RON95 petrol is subsidised at RM1.99 per litre for eligible Malaysians, with a monthly cap of 200 litres, while diesel subsidies vary between East and West Malaysia.
The proposal is among 25 resolutions expected to be brought forward at the next Umno political bureau and Supreme Council meetings. These also include calls to reintroduce the Goods and Services Tax (GST) at an initial rate of 3 per cent.
The GST discussion has previously gained traction among political figures, with some former leaders and economists arguing that its reinstatement could strengthen national revenue streams and improve fiscal stability.
