KOTA KINABALU: Parti Warisan has urged the Federal Government to exempt Sabah from any proposed removal of fuel subsidies for the T20 income group, describing the move as a “one-size-fits-all” policy that fails to reflect the realities faced by Sabahans.
Warisan Strategic Communications Director Christopher Masudal said the proposal by the National Economic Action Council would place further pressure on Sabah’s middle-income earners and small businesses.
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He said households in Sabah classified as T20, with a gross monthly income of RM9,160, should not automatically be considered wealthy.
“This is not wealth. This is survival,” he said in a statement, Saturday.
Citing MyCensus2020 data, Christopher said T20 households in Sabah already spend 26.5 per cent of their income on housing, water, electricity and fuel, 17.3 per cent on food and 16.8 per cent on transportation.
He said the remaining income was used to cover commitments such as PTPTN repayments, housing loans, childcare and support for elderly parents and younger siblings.
“Removing fuel subsidies from these households is not targeting the rich, it is squeezing Sabah’s hardworking middle class,” he said.
Christopher also described the T20 classification system as flawed because it was based on combined gross household income without considering financial obligations and debts.
He said many young working couples were categorised as wealthy despite facing heavy financial commitments.
According to him, Putrajaya should not treat Sabah’s income structure the same as Kuala Lumpur and Selangor, given Sabah’s different cost of living, infrastructure limitations and economic conditions.
Christopher said many Micro, Small and Medium Enterprises (MSMEs) owners in Sabah were already struggling with bank financing pressures, e-Invoicing compliance, Sales and Service Tax obligations, rising raw material prices, electricity tariffs and licensing fees.
“These business owners are classified as T20 not because they are wealthy, but because of how household income is calculated. Removing their fuel subsidies at this moment is not reform. It is punishment,” he said.
He also questioned why the Inland Revenue Board had yet to resolve RM33.3 billion in outstanding tax refunds owed to businesses and entrepreneurs before introducing additional burdens.
Christopher said Sabah’s Chinese community, which he described as a key contributor to the State’s economy, would also be disproportionately affected by the proposal.
“This proposal disproportionately affects them, and Warisan will not stay silent while Putrajaya overlooks their contributions,” he said.
“We call on the Chief Minister of Sabah to formally raise this matter with the Federal Cabinet and demand Sabah’s exemption before any implementation takes place.
“Sabah’s voice must be heard. Warisan will make sure of it,” he said.
