Misleading posts claim Malaysian government 'removed gas subsidies for all businesses'

AFP

4 days ago

"The government has lost its mind. Gas subsidies for businesses have been removed. Small business owners feel like they cannot raise prices again after multiple cost increases," reads a Malay-language Facebook post on June 2, 2025.
Image
Screen shot of the false post taken on June 3, 2025
The claims surfaced after the Domestic Trade and Cost of Living Ministry (KPDN) announced a five-month operation beginning May 1 to curb the use of subsidised liquified petroleum gas (LPG) by the commercial and industrial sectors, as well as to crack down on illegal decanting activities (archived link).
It also said businesses will no longer be allowed to use subsidised cooking gas and will need to switch to commercial gas cylinders, which cost three times the price of household cylinders (archived link).
The launch of the operation prompted lawmakers to claim it would cause small businesses to increase prices for consumers, with one opposition lawmaker calling it "robbery" by the government.
Similar claims were shared elsewhere on Facebook, and in a group with more than 35,000 members.
Users left comments indicating they were misled, with one saying: "The current government is not helping people but adding to the burden."
Another said: "The government has gone too far."
However, the operation does not target small businesses.
No abolishment of subsidies
KDPN minister Armizan Mohd Ali refuted the misleading claim in a statement released via state news agency Bernama on June 3, saying the main purpose of the operation was to combat illegal decanting activities, smuggling of LPG and the use of subsidised gas by large and medium-scale industries (archived link).
"Through this operation, there are no new policies and regulations, let alone cuts and abolishment of LPG subsidies as claimed by certain parties," the statement said.
Instead, small businesses using less than three cylinders of the subsidised gas a day are allowed to keep using the cheaper product, while larger commercial operations using more than three at any one time would require a permit and cannot purchase subsidised gas, the minister said.
The Communications Ministry's Department of Information issued a similar clarification on Facebook on May 31 (archived link).
Penang Hawkers Association chairman Ooi Thean Huat told AFP that small businesses in the northern state typically only need up to three gas cylinders a day, allowing them to use the subsidised 12kg cylinders, which are sold for 26 ringgit ($6 USD).
However, Ooi noted that even switching to the unsubsidised cylinders would not lead to price hikes for customers.
"If we use the non-subsidised cylinders, two a day should be enough. There will be no changes to the prices of food because you do get more gas with the commercial cylinders," he said.