KUALA LUMPUR, May 13 — The government should maintain the Budi Madani RON95 (Budi95) fuel subsidy scheme for all Malaysians and instead require banks to contribute more directly to MSME support, DAP Bagan MP Lim Guan Eng said.
In a statement today, Lim said Prime Minister Datuk Seri Anwar Ibrahim could “avoid accusations of double standards” by targeting the banking sector rather than excluding the T20 income group from fuel subsidies.
He was responding to Anwar’s consideration of limiting the Budi95 subsidy to lower-income groups.
Lim warned that such a move “risks being seen as short-sighted and eroding public trust” by turning fiscal reform into a policy that appears punitive rather than fair.
He said it also oversimplifies the financial pressures faced by urban households in the T20 category, noting that not all households earning above RM11,820 monthly are financially comfortable due to rising living costs, housing commitments and childcare expenses.
“For that reason the BUDI95 fuel subsidy scheme must be maintained and available to all Malaysians,” he said.
Lim also urged the government to instead engage banks, which he said continue to post strong profits, to support micro, small and medium enterprises (MSMEs) through RM5 billion in interest-free and collateral-free loans of RM50,000 to RM100,000, as well as a one-year interest moratorium on existing MSME loans.
“Why leave out the banking industry that recorded a 13.5 per cent hike in profit before tax of RM6.5 billion in 2025, rising from RM48.3 billion in 2024 to RM54.8 billion in 2025?” he said, citing Bank Negara data.
He added that banks were already benefiting from a relatively low interest rate environment, noting the Overnight Policy Rate of 2.75 per cent and average fixed deposit rates of 2 to 2.3 per cent.
Lim also cited the Federation of Malaysian Manufacturers (FMM), saying 68 per cent of companies in the manufacturing sector were facing cash flow pressure, with 13 per cent describing it as severe enough to affect their ability to pay suppliers.
“MSMEs are in dire straits,” he said, adding that both the government and banking industry should shoulder more responsibility to help businesses manage cash flow challenges.
He said proposed measures such as a one-year moratorium on interest payments and subsidised MSME loans could help businesses weather what he described as a deepening economic strain.
