Former Finance Minister, Lim Guan Eng, has recently issued a proposal to set a monthly income limit of RM15,000 for households in the top 15% group (T15) who will be exempted from receiving RON95 petrol targeted subsidies.
He is of the opinion that this limit reflects a reasonable income, ensuring that the subsidy eligibility cut-off line is set fairly and comprehensively.
This proposal comes after the government's announcement in Budget 2025 to phase out subsidies for the T15 group by mid-2025, which is expected to save RM8 billion annually.
These savings will then be channeled to the education, health, and public transport sectors.
However, Lim's suggestion did not stop there.
The Bagan MP also touched on the government's move to oblige all foreign workers to contribute to the Employees' Provident Fund (EPF).
He suggested that the 24% contribution rate could be used as 'compensation' for fines and penalties incurred by employers as a result of offenses involving foreign workers.
In the meantime, Lim reminded that if this proposal is not acceptable under the rules of the International Labor Organization (ILO), the government should consider the South Korean model that uses an insurance payment system as a substitute for EPF contributions.
This proposal not only expands the discussion about the government's strategy in coordinating subsidies, taxes, and employment policies, but also invites reactions from various parties.
What is the government's next step in addressing this issue as the country prepares for significant economic changes in 2025?
