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Some middle-class Malaysians say they are being ‘punished’ by Prime Minister Anwar’s planned subsidy cuts to the ultra-rich
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Some middle-class Malaysians say they are being ‘punished’ by Prime Minister Anwar’s planned subsidy cuts to the ultra-rich

The Malaysian government is trying to quell anger among the squeezed middle class following a lack of clarity on what constitutes T15. Many people, including economists and politicians, have argued that a household earning RM13,500 cannot be considered ultra-rich.

Economy Minister Rafizi Ramli acknowledged shortly after the budget that the government was preparing for “turbulent waters ahead” in cutting oil subsidies, but said on October 28 that the T15 designation was expected to be based on location and net disposable household income.

The government hopes to finalize these details within a month, he said, estimating that 10 million households could qualify for the new T15 classification.

Mr Anwar has had to endure this situation twice since the Budget was announced; He first rejected suggestions that a household earning RM13,500 would be considered T15, then said subsidy cuts could only happen for households earning T10 or more than RM15,000. a month.

In a sharp response to MPs who questioned the definition of T15 in parliament on October 29, Mr Anwar denied that the government had made confusing statements after the budget.

“The Ministry of Statistics had set it (T15) at RM13,000. We think it is too low. Can we increase this to RM15,000 or RM20,000? This is being discussed. “Therefore, there is no contradictory statement,” he said.

On Nov. 1, Mr. Anwar disputed some likening him to Robin Hood for taking the budget away from the wealthy and said it was fair to help low-income groups.

“If we want to take care of the poor, we must have adequate resources. We inherited debt worth RM1.5 trillion and do not want to burden people with heavy taxes. We only collect a modest tax from the ultra-rich.

“This is not Robin Hood, it is just the withdrawal of subsidies,” Pertahanan said during a dialogue with Nasional Malaysia University students, as reported by the News Straits Times.

On June 10, Malaysia cut diesel subsidies in a move expected to save RM4 billion annually. Diesel prices fluctuated and quickly rose by 56 percent, increasing unhappiness despite cash aid to some affected segments.

This included low-income private diesel owners who could apply for a monthly cash payment of RM200 to cover the cost of fuel.