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Putrajaya Must Not Burden Sabahans — Exempt Sabah from T20 Fuel Subsidy Removal
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Putrajaya Must Not Burden Sabahans — Exempt Sabah from T20 Fuel Subsidy Removal

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Warisan Strategic Communications Director, Christopher Masudal, has urged the Federal Government to exempt Sabah from the proposed removal of fuel subsidies for the T20 group, arguing that Sabah’s economic realities and cost of living differ significantly from those in Peninsular Malaysia.

He said the T20 classification in Sabah does not necessarily reflect actual wealth, as many households and business owners in the state continue to face rising living costs, debt burdens, and growing economic challenges.

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KOTA KINABALU: Warisan Strategic Communications Director Christopher Masudal has urged the Federal Government to fully exempt Sabah from the proposed fuel subsidy removal for the T20 group should the proposal be approved.

According to him, the proposal by the National Economic Action Council (MTEN) is yet another example of a “one-size-fits-all” policy approach by Putrajaya that fails to understand the realities faced by Sabahans.

He said that in Sabah, a household earning a gross monthly income of RM9,160 is already classified as T20, but this does not mean they are living luxuriously.

For most Sabahans, he said, such an income is merely enough to sustain daily living amid rising costs of living.

Christopher stated that MyCensus2020 data showed T20 households in Sabah spend 26.5 percent of their income on housing, water, electricity and fuel, 17.3 percent on food, and 16.8 percent on transportation.

He said the remaining income is used to cover other commitments, including PTPTN repayments, housing loans, childcare, caring for ageing parents, and supporting school-going family members.

He stressed that removing fuel subsidies from this group would not target the wealthy, but instead place additional pressure on Sabah’s hardworking middle class.

In the same statement, Christopher described the T20 classification system as fundamentally flawed because it only considers combined gross household income without assessing a family’s actual financial commitments.

He said young working couples burdened with debts are automatically classified as wealthy even though they continue to struggle with daily financial pressures.

He also reminded Putrajaya to stop equating Sabah’s income structure with states such as Kuala Lumpur and Selangor.

According to him, Sabah has its own unique cost-of-living structure, infrastructure challenges, and economic realities that are often ignored by policymakers who are overly focused on Peninsular Malaysia.

Christopher also raised concerns about the impact of the policy on Sabah’s Micro, Small and Medium Enterprises (MSMEs).

He said many MSME entrepreneurs are already facing pressures from bank financing, e-Invoice compliance, SST obligations, rising raw material costs, increasing electricity tariffs, and licensing fees.

He said these entrepreneurs are the backbone of Sabah’s economy, yet many are classified as T20 simply because of the household income calculation method.

According to him, removing fuel subsidies from them at this time is not economic reform, but a form of punishment against those struggling to keep their businesses afloat.

In the statement, Christopher also questioned why the Madani Government has still failed to settle RM33.3 billion in outstanding tax refunds owed to businesses and entrepreneurs in Malaysia.

He said Sabah’s business community needs breathing space rather than additional pressure from Putrajaya.

He also stressed that the Chinese community in Sabah has long been among the most important and resilient contributors to the state’s economic development.

According to him, the proposed subsidy removal would disproportionately affect Sabah’s entrepreneurs and business community, including the Chinese community, which has contributed significantly to local economic growth.

Christopher said the issue is not merely a debate about statistics, but a question of whether the Federal Government truly respects Sabah’s unique position and the sacrifices made by its people.

He therefore called on all Sabahans, regardless of race, religion, or political affiliation, to unite in rejecting any policy that increases the people’s burden without understanding grassroots realities.

He also urged the Chief Minister of Sabah to officially raise the matter in the Federal Cabinet and demand Sabah’s exemption before any implementation takes place.

He stressed that Sabah’s voice must be heard, and that Warisan will continue fighting for the matter.

Rujukan: MyCensus DOSM T20

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