Bersatu MP warns unclear petrol subsidy, electricity hike plans hurting business, investors
KUALA LUMPUR, May 1 — Opposition MP Wan Ahmad Fayhsal Wan Ahmad Kamal has urged the government to act decisively on the planned targeted RON95 petrol subsidy, saying unclear policies could harm investor confidence.
The Machang MP and a Bersatu supreme council member said the delay in subsidy rationalisation and vague policy communication were affecting both foreign and domestic investment.
'If (rationalising RON95 petrol subsidies) needs to be done because of a shortfall in the nation's revenue, it has to be done properly. No flip-flop announcements,' he was quoted as saying in an interview with news portal Free Malaysia Today published today.
'If the government wants to do unpopular things, just do it. Bite the bullet. March ahead and rally the people because this way, the rakyat can at least be prepared to face the challenges ahead.'
A former deputy minister, Wan Ahmad Fayhsal said the recent 26-week net foreign outflow from Bursa Malaysia showed weakening investor confidence.
He warned that this could negatively affect small and medium enterprises across the country.
He added that many of Prime Minister Datuk Seri Anwar Ibrahim's policy frameworks were not being clearly explained or implemented.
'The execution is not properly done and lacks clarity, and that's why the money (foreign investment) is not here. When you do not communicate your policy well, investors will hesitate to invest for the long run,' he told the news portal.
He also noted that Malaysia's strength in semiconductor manufacturing came from earlier administrations.
'We are ahead of our neighbouring countries when it comes to manufacturing semiconductors, but this is a historical legacy that was not born under Anwar's government,' he was quoted as saying.
The RON95 subsidy cut, initially planned for 2024, has now been pushed to mid-2025.
Economy Minister Rafizi Ramli previously acknowledged the move could trigger public backlash.
Last month, the Petrol Dealers Association of Malaysia called for clearer details on the plan, including who qualifies, whether MyKad will be used to identify recipients, and the overall cost and impact.
In March, Rafizi said the Cabinet had reviewed four proposals but had yet to decide on the eligibility criteria.
The government is also reportedly reworking the current income classification for the top 15 per cent of income earners, better known as T15.
Wan Fayhsal also criticised the government for ignoring feedback on a proposed electricity tariff hike.
'Trade associations complained to the prime minister and urged him not to raise the tariff yet because they are not ready for it, saying its implementation will impact their operations. I believe it fell on deaf ears,' he was quoted as saying.
Tenaga Nasional Bhd has proposed a new base rate of 45.62 sen per kilowatt-hour for peninsular Malaysia, up from the current 39.95 sen/kWh, starting July 1, 2025.
The Malaysia Shopping Malls Association warned the increase would burden both operators and consumers, especially with other rising costs.
Several industry groups, including the Malaysian Iron and Steel Industry Federation, Malaysian Plastics Manufacturers Association, and the Federation of Malaysian Manufacturers, have also appealed for the government to reconsider.
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