12/05/2026

TUESDAY | MAY 12, 2026

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New data-driven approach for fuel subsidy: Minister

EPF introduces i-Legasi, i-Emas, retirement goal calculator

KUALA LUMPUR: The Employees Provident Fund (EPF) yesterday introduced the i-Legasi, i Emas and the Retirement Goal Calculator as part of wider efforts to enhance retirement security and financial resilience across generations. The fund’s CEO Ahmad Zulqarnain Onn said retirement planning must go beyond savings accumulation to focus on adequacy and sustainability. “We are evolving to support our members not only in savings but also in making informed decisions to ensure that their savings last a lifetime and to leave a legacy for their loved ones,” he said in a statement yesterday. The i-Legasi facility enables members to transfer a portion of their EPF savings into the EPF accounts of immediate family members upon reaching full withdrawal age. Meanwhile, the current monthly payment method under the Age 55/60 Withdrawal has been rebranded as i-Emas. Rather than withdrawing their savings in full upon reaching age 55/60, members can opt for automated monthly payments via i-Emas, allowing their remaining balance to continue earning annual dividends. “Over 21,000 members have opted for monthly withdrawals upon reaching age 55/60.” He said i-Emas provides the flexibility to manage daily needs while protecting members against financial risks, Bernama reported. The Retirement Goal Calculator, available via the EPF i-Akaun app, is designed to help members plan their retirement more effectively. The calculator helps members estimate future savings needs based on lifestyle expectations and projected expenses.

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

o ‘Mechanism to move beyond classifications such as B40, T20 and focus on actual household needs, spending patterns, fuel consumption’

PUTRAJAYA: The government is moving towards a more targeted and data-driven mechanism for RON95 fuel subsidy, with the Central Database Hub set to play a key role in determining who genuinely requires assistance, said Economy Minister Akmal Nasrullah Mohd Nasir. He said the new approach would move beyond broad income classifications such as the B40, M40 and T20 categories, focusing instead on actual household needs, spending patterns and fuel consumption. Akmal said the biggest challenge is identifying a fair dividing line between Malaysians who should continue receiving subsidies and those who could be excluded under a more targeted system. “In our effort to channel subsidies to target groups, we do not want to create a significant shock to groups that may still need support or may not yet be fully prepared to transition away from such assistance,” he said after a letter of offer presentation ceremony between the government and Arm Ltd in Putrajaya yesterday. Akmal said the Central Database Hub would serve as a critical reference point in the rationalisation exercise, with the Economy Ministry prepared to provide relevant data and dimensions to support the evaluation process. PETALING JAYA: Resorts on Pulau Perhentian are burning about 10,000 litres of diesel a month per operator just to keep the lights on, and with no grid connection or fuel subsidy, operators say the rising costs are becoming unsustainable, particularly for smaller family-run businesses. Perhentian Island Tourism Operators Association chairman Rafizah Munir said diesel costs have surged by about 80%, pushing monthly operating expenses up by between RM22,800 and RM30,000 for an average resort operator. “A typical mid-sized resort consumes between 2,000 and 2,500 litres a week, with generators running around the clock as the islands have no connection to the national power grid,” she told theSun . Operators are currently paying commercial rates of RM5.12 per litre for diesel and RM3.87 per litre for petrol, compared with earlier prices of between RM2.84 and RM2.92 for diesel and around RM2.52 for petrol. “Currently, we are caught in a subsidy vacuum where we have no choice but to procure fuel at full unsubsidised commercial rates.” She said the association is seeking inclusion in the government’s targeted fuel subsidy mechanisms, including the Sistem Kawalan Diesel Bersubsidi, a regulated system that controls the distribution of subsidised diesel to eligible sectors. She added that access to the scheme could reduce operating costs by nearly RM30,000 a month for some operators. Rafizah said the request by the association is for operational survival Ű BY T.C. KHOR newsdesk@thesundaily.com

Anwar said several ministries and committees had been discussing the matter over the past few weeks but no final decision had been made. Addressing concerns that higher-income earners who contribute significantly in taxes could be unfairly affected, Akmal said the government recognised their contributions but targeted subsidies were necessary to ensure long-term fiscal sustainability. He said improving the country’s fiscal position would allow the government to better manage inflationary pressures while continuing to drive national development. Akmal also indicated that the government hopes to finalise the mechanism before the beginning of a new month. “Introducing such changes also involves systems, so it depends on the readiness of the system to ensure the screening process can be carried out effectively.” The government had said previously that fuel subsidies surged to an estimated RM7 billion in April alone, amid rising global oil prices and geopolitical tensions, intensifying pressure to reform the country’s long standing blanket subsidy system.

He said a clearer and more transparent threshold would help improve public acceptance of the policy while allowing for a fair appeals mechanism for those who believe they have been unfairly excluded. Akmal said the matter had already been discussed by the National Economic Action Council following the government’s push to improve the subsidy distribution system so that assistance reaches those who truly need it. He said there had been growing calls from academics and policy experts for subsidies to no longer be distributed on a blanket basis but determined according to actual needs and usage. “We have previously considered managing the quantity of supplies provided to each recipient, and the next step is to ensure that the subsidies genuinely benefit the intended target groups.” His remarks come after Prime Minister Datuk Seri Anwar Ibrahim had said the government was still fine-tuning the proposed RON95 subsidy rationalisation mechanism, including whether it would involve the T20, T15 or other income groups.

Pulau Perhentian resorts struggle to keep lights on

rather than profit, warning that many smaller family-run resorts are struggling to absorb the increases. She said logistics costs have further compounded the pressure, with boat operators raising rates by more than 42%. “Our entire supply chain – everything from the fresh fish we serve to the clean linens in our rooms – relies on third-party boat operators. When the cost of moving a single barrel of supplies jumps from RM7 to RM10, it creates a ripple effect that touches every corner of the island’s economy.” She said despite the sharp increase in costs, most resorts have raised room rates by only 10% to 15%, absorbing the bulk of the burden themselves. “A 15% increase in room rates cannot possibly cover an 80% jump in energy costs. At the moment, operators are personally absorbing about three quarters of the blow. We are acting as a shield for our guests, but that shield is getting heavier by the day. We cannot hold it up forever without help.” A permanent national grid connection is only expected by 2030, leaving operators exposed to escalating fuel costs for years without meaningful relief. She said if direct fuel subsidies are not feasible, the government could consider zero-interest financing, grants or renewable energy initiatives to reduce long-term dependence on diesel. “The resorts are not isolated businesses. They are the economic backbone of the islands, supporting boat operators, local traders, workers and hundreds of families. “Protecting the sustainability of island tourism means protecting livelihoods and preserving one of Malaysia’s most iconic tourism destinations for future generations.”

Rafizah said the Perhentian Island Tourism Operators Association is seeking inclusion in the government’s targeted fuel subsidy mechanisms for the operational survival of resorts on the island.