KUALA LUMPUR: The government's decision to factor in household income, property and luxury vehicle ownership to determine eligibility for the RON95 fuel subsidy must be broadened to reflect a more accurate picture of household well-being, said the Federation of Malaysian Consumers Associations (Fomca).
Its chief executive officer, T. Saravanan, said household size and the number of dependents should also be taken into account, as they directly affect how far a family's income can stretch.
"Regional differences in the cost of living also play a major role, as urban households face significantly higher expenses compared to rural ones.
"Additionally, special circumstances such as medical burdens, single-parent families or households caring for disabled members should not be ignored," he told the New Straits Times.
Earlier, the government announced that ownership of property and luxury vehicles, alongside monthly income, will now be among the benchmarks in determining eligibility for the RON95 subsidy, as part of efforts to phase out blanket subsidies and channel aid to those most in need.
Saravanan said the current criteria were not sufficient to capture the full financial pressures faced by families.
He said a household with a higher income figure may appear comfortable on paper but may also be supporting elderly parents, young children, or even relatives with medical needs.
"For instance, many households are still responsible for caring for retired and aging parents, which carries heavy financial and caregiving responsibilities.
"There are also situations where vehicles are registered under children's names for their parents' use, which could unfairly disqualify them from subsidies.
"If these realities are ignored, the system risks punishing families that are already burdened. To ensure fairness, the government must take into account dependents and caregiving responsibilities in addition to income and property ownership, as these factors significantly affect disposable income and quality of life," he said.
He also warned that if the system relies only on income, property and vehicle ownership, it risks oversimplifying a complex issue.
"With stagnant wages, rising living costs and reducing purchasing power, leaving these realities unaddressed will create unhappiness among the rakyat and foster negative public perception," he said.
He said while targeted subsidies are necessary and welcomed, they must be implemented holistically to be both efficient and equitable.
Malaysia Consumers Movement secretary general Harminder Singh said the government must ensure that only the affluent are impacted by the RON95 fuel subsidy rationalisation.
He said while it is certain that the government will proceed with the subsidy rationalisation exercise, the process must be handled delicately to avoid a negative public backlash.
"It's a delicate exercise where a wrong decision can backfire, leaving a lasting impact on the public. The right decision must be made so that only the affluent are affected," he said.
Harminder said income levels should remain the primary criterion in determining the targeted group, as a person's lifestyle is largely influenced by their income.
"Income levels can and should be the main criteria in deciding the targeted group. Other factors can be used to support the decision-making process.
"Some may be earning well but choose to under-declare their income. In such cases, property and luxury vehicle assessments can be used as additional determining factors," he said.
