T15 Fuel Subsidy Criteria May Drive Consumers to Downsize or Plug Into EVs, Says MIDF

Research done by the Malaysian Industrial Development Finance Berhad (MIDF) suggests that the new T15 fuel subsidy criteria might nudge consumers to either downgrade their rides or embrace the electric revolution, whether by choice or sheer necessity.

The proposed T15 income bracket for the RON95 fuel subsidy, expected to be finalized mid year, might have consumers either downgrading their rides or belok back to EVs, according to MIDF Research, as reported by Bernama.

This policy twist could see buyers opting for more budget friendly internal combustion engine (ICE) cars or quickly switching to EVs before the tax exemptions for fully imported (CBU) EVs disappear like roti canai on a Sunday morning.

Adding more drama to the market, MIDF Research highlighted that the revised excise duty, set to kick in January 2026, will expand taxes on completely knocked down (CKD) components, potentially revving up CKD car prices by 10% to 30%. Nampaknya, kereta impian might just kena tunggu next year’s bonus.

Last week, economists lent their support to a two-tier pricing structure for RON 95 petrol as an alternative to cash aid, arguing that charging for fuel based on vehicle type wouldn’t deter the wealthy from enjoying subsidized RON 95 petrol while cruising around in more modest rides. After all, even the wealthy know how to play the game when it comes to saving a ringgit or two.

When unveiling Budget 2025, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced that the RON 95 petrol subsidy cut would require the nation’s top 15% of earners (T15) to fork out more at the pump. While the idea sounded simple enough, it sparked a whirlwind of questions: Who exactly qualifies as the T15 ?

With no concrete definitions provided, curious Malaysians took it upon themselves to dig up statistics, discovering that households earning RM12,000 or RM13,000 monthly could be classified under T15. For a working couple, that boils down to earning RM6,000 each, a figure that had many Malaysians scratching their heads and saying, “Betul ke?”

Facing mounting confusion, Anwar has since softened his stance on the exact criteria for T15. It seems the T15 definition is, much like petrol prices, subject to change. For now, it’s a waiting game as Malaysians brace for more clarity, or at least more laughter, in the months ahead.