Govt Won't Raise Price Of RON95 Amid Geopolitical Tensions

Barnama18 hours ago

GENERAL
ISKANDAR PUTERI, June 19 (Bernama) — Prime Minister Datuk Seri Anwar Ibrahim has given assurance that the government will not raise the price of RON95 petrol, even if there is a sharp increase in global crude oil prices due to geopolitical tensions involving Iran and Israel.
He said that although the price increase benefits the national petroleum company, the government aims to avoid burdening the people with higher fuel costs.
'Oil prices fluctuate. Currently, it is relatively low. (If) there is a sharp increase, the returns are good for Petronas, but it affects other countries. We are not increasing fuel prices,' he said.
Anwar, who is also PKR president, told reporters this after a meeting with the Johor PKR leadership here today.
At the same time, Anwar stressed that fiscal policies, including the reimplementation of the Sales and Service Tax (SST), must be implemented carefully so as not to pressure the lower-income (B40) and middle-income (M40) groups.
'Sometimes people get confused. For example, it was said that bananas are subject to SST. Actually, it's imported bananas. But we will clarify the matter. The important thing is, we do not want to burden the lower-income group,' he said.
He also suggested that government departments and agencies serve local fruits during official functions as a way to support domestic production.
'For official receptions or government office events, use local food and fruits only. It's doable. Let's support local products,' he added.
Anwar said the government is open to reviewing the list of goods and services subject to tax if there is confusion or unfairness in its implementation.

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'Economy grew better than expected', PM defends reforms

The Star

19 minutes ago

The Star

'Economy grew better than expected', PM defends reforms

PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has defended the government's handling of the economy, asserting that although the reforms may be challenging, they are beginning to yield real and positive results. Speaking at the monthly gathering of Finance Ministry staff, Anwar acknowledged public concerns and online criticism that the government is not managing the economy well, overspending, or making life harder with new taxes and reduced subsidies. "We are burdened with a tired fiscal system, weighed down by old debts and a narrow income base," he said. "But like it or not, we must reform, even if it's tough," said Anwar on Friday (June 20). Anwar stated that the country's economy is improving in several key areas. Malaysia has jumped 11 places to 23rd in the world in the latest global competitiveness ranking — the best score since 2020. "The economy grew by 5.1% in 2024, better than expected. The unemployment rate is down to 3.0%, the lowest in 10 years, and the ringgit has strengthened, gaining over 5% against the US dollar this year. "This shows the world is recognising our reforms and investors are responding positively to the direction we're taking." He said Malaysia's financial discipline is also gaining international praise. The International Monetary Fund (IMF) recently commended the country's efforts to control spending and debts, particularly the introduction of the Fiscal Responsibility Act 2023. "Government spending is now more careful, with fewer new debts and a shrinking fiscal deficit, which dropped to 4.1% in 2024." Anwar also stated that reforms are not about abandoning the people. "Instead, help is being delivered in a more targeted and effective way, where in 2023, 85% of households were unaffected by changes to electricity subsidies. "Diesel subsidies were adjusted in 2024 to reduce government spending without raising the cost of goods, as the logistics sector continued receiving support." He said the expanded sales and service tax (SST) changes starting in July 2025 will not affect essential goods. "We're not just saving money, we're using it better, for the people who truly need it." With more efficient use of funds, the government has been able to increase support where it matters most. Anwar said a record RM13 billion in cash assistance through the STR and SARA programmes will benefit nine million Malaysians, or 60% of the adult population. "Budgets for public services have also grown, with RM64bil allocated for education and RM45bil for healthcare in 2025. We're making sure these savings go back to the people — in the form of better aid, education, healthcare, and public transport." Anwar said Malaysia can no longer afford to do things the old way. Reform is hard, but necessary. "This is a journey of courage and commitment," he said. "With teamwork, understanding, and the will to do the right thing, we can carry out this trust with full responsibility." He urged civil servants and the public to stay united, work hard, and believe in the path the country is taking.

Auto sector to have minimum impact from SST expansion

The Sun

23 minutes ago

The Sun

Auto sector to have minimum impact from SST expansion

KUALA LUMPUR: CIMB Securities Sdn Bhd has projected the upcoming Sales and Service Tax (SST) expansion in July 2025 to have a limited direct impact on the automotive sector. In a research note, it said vehicle sales are already subject to a 10 per cent sales tax, while maintenance and repair services incur an 8.0 per cent service tax. 'That said, there may be a slight increase in dealership and showroom rental costs due to the measure, although we believe the impact will be minimal. 'Indirectly, however, weaker consumer sentiment could weigh on new vehicle sales in the second half of 2025 (2H 2025),' it said. The Malaysian Automotive Association (MAA) has reportedly projected a 4.5 per cent year-on-year (y-o-y) decline in total industry volume (TIV) to 780,000 units in 2025, attributing this to demand normalisation and a reduced industry order backlog. CIMB Securities has, however, forecasted a sharper 7.0 per cent y-o-y decline in TIV to 760,000 units, due to potential headwinds from the planned removal of the RON95 petrol subsidy in 2H 2025, which Prime Minister Datuk Seri Anwar Ibrahim has affirmed will proceed as part of the government's subsidy rationalisation. 'Despite this, we expect demand in the sub-RM100,000 segment to remain resilient, supported by national brands and selective entry-level Japanese models. 'We project national brands to retain a dominant 64.5 per cent market share in 2025, with non-national marques accounting for the remaining 35.5 per cent,' it said. CIMB Securities also believed the removal of fuel subsidies could accelerate battery electric vehicle (BEV) adoption. BEV sales nearly doubled y-o-y in 1Q 2025 to 5,394 units from 2,703 units a year ago, with combined BEV and hybrid penetration rising 1.9 percentage points y-o-y to 7.3 per cent. 'With full duty exemptions for imported electric vehicles (EVs) set to expire by end-2025, and the government unlikely to extend it beyond the Dec 31, 2025 deadline, we expect a potential spike in EV demand in 4Q 2025 as buyers rush to benefit from tax savings,' it said. CIMB Securities has maintained its 'Neutral' rating on the sector due to a subdued growth outlook amid intensifying market competition.