“In determining (which households fall into the T15 category), and their eligibility for targeted subsidies such as those for RON95 petrol, the government should set (the income bracket) in the range of RM15,000 a month (and above),” he said while debating the Supply Bill 2025.
During the tabling of the 2025 budget, the government said it would stop giving RON95 petrol subsidies to the top 15% of households starting mid-2025, saving the government RM8 billion yearly.
Prime Minister Anwar Ibrahim said the savings will be redirected to education, healthcare and public transport.
Lim also asked the government to give a clear estimate on how much revenue it expected to receive from the incoming slew of new taxes.
‘Follow South Korea in protecting employers’
Meanwhile, the former finance minister also asked the government to consider using foreign workers’ Employees Provident Fund contributions to help employers cover fines or losses incurred by these workers’ offences or damages.
“I propose that these contributions be used to pay for any fines, penalties or losses suffered by employers if foreign workers commit any offence or acts of sabotage,” he said.
Lim said if the idea does not meet International Labour Organization rules, the government should emulate South Korea’s insurance system, which protects both employers and employees in any case of wrongdoing by either party.
He also raised concerns about foreign contractors who win government and private projects in the country, but use materials bought from their countries of origin, cutting out local businesses.
Lim said the government should follow Indonesia’s example by requiring foreign contractors to buy at least 50% of their materials locally.
‘Raise tax exemption for SMEs’
Lim also urged the government to support small and medium enterprises (SMEs) facing higher costs due to wage increases, and proposed raising the tax exemption limit for SMEs from RM150,000 to RM300,000 to help them handle the impact of higher wages.
“The government can also help SMEs by lowering the tax rate to 17% for profits up to RM700,000. This would allow SMEs to save RM10,000 in taxes in 2025,” Lim said.
Lim said the government should also double its funding for non-Islamic religious buildings from RM50 million to RM100 million.
He asked for more support for the Indian community, proposing its allocation be raised from RM130 million to RM200 million.