KUALA LUMPUR: The government will not rely solely on data from the Household Income Survey (HIS) by the Statistics Department (DoSM) to define the T15 group for subsidy restructuring, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat today.
Instead, the criteria for the T15 group will be based on a comprehensive review.
"The government is still evaluating the criteria for the T15 group in targeting RON95 fuel subsidies, and it will not be strictly linked to the definitions used in HIS," he said in response to Aminolhuda Hassan (PH-Sri Gading).
Aminolhuda had asked how the T15 group would be defined, especially for the targeting of RON95 petrol subsidies planned for mid-next year.
In response, Amir said the government would consider all available data, including input from the Central Database Hub (Padu) and DoSM, among other sources.
He said the same goes for defining those eligible for subsidised RON95 fuel, which will also not be strictly linked to the definitions used in HIS.
"The government will review this matter before it is finalised, taking into account additional criteria beyond income.
"The government is committed to continuing to protect the welfare of the majority of the people, including the middle-income group, in facing the challenges of the cost of living."
On RON95 subsidy rationalisation, Amir Hamzah said it was needed to prevent leakages, including to foreigners and smugglers.
He said the government would ensure that the implementation of RON95 subsidy targeting was comprehensive and effective, similar to the measures taken with diesel subsidies previously.
"The subsidy mechanism is expected to involve setting fuel pump prices at petrol stations according to market prices, while eligible individuals can still purchase RON95 fuel at a subsidised rate.
"In addition to the fleet card mechanism for diesel, the government is also carrying out a pilot project for purchasing subsidised RON95 fuel using MyKad and e-wallet.
"We hope to use the MyKad or e-wallet mechanisms to determine who qualifies for the RON95 subsidy and restrict access for those who do not qualify," he said.
He added that the government would ensure that eligible groups received the appropriate incentives or assistance, while also adopting a simple and holistic mechanism.
"This includes disseminating information or clarifications on effective subsidy targeting, while also preventing attempts at profiteering or sudden price hikes by irresponsible operators," he said.