Nik Nazmi Nik Ahmad (PH-Setiawangsa), who previously served as the natural resources and environmental sustainability minister, instead argued in favour of the government’s targeted subsidy approach applied to other forms of assistance.
He pointed to targeted subsidies for diesel and electricity, which had helped the government save RM11 billion in subsidies for 2023 and 2024, while also preventing 85% of electricity users from facing higher bills.
“For me, it is normal that whenever we push for reforms and implement changes, there will be those who are unhappy with such measures,” he said while debating the 2026 Supply Bill in the Dewan Rakyat.
“That is why we made major decisions to implement targeted subsidies during the first three years of the Madani government – so that we no longer need to introduce more drastic targeted subsidies in Budgets 2026 and 2027, while also raising the minimum wage, implementing a progressive wage policy, and increasing civil service pay.”
Nik Nazmi said the government would only save around RM2.5 billion to RM4 billion per year in subsidies under the BUDI95 scheme without the targeted approach.
“We must also acknowledge that the scheme is regressive, as lower-income individuals without personal vehicles do not benefit from it. Yes, they receive assistance through other initiatives such as the Sumbangan Asas Rahmah, but so do the wealthy, through BUDI95.
“That is why I would like to stress that we missed an opportunity to make meaningful changes – to ensure that ultra-wealthy individuals carry a greater share of the burden, as the Tambun MP (Anwar Ibrahim) himself often says,” he added.
Time to table long-overdue climate bill
On a separate matter, Nik Nazmi urged the government to table the long-overdue National Climate Change Bill as soon as possible.
The PKR lawmaker said the law would serve as “an important pillar” for Malaysia in addressing climate change, noting that many industries affected by a potential carbon tax – such as the steel and aluminium sectors – were waiting for clear climate-related guidelines.
He said the bill had been drafted following extensive consultations with various stakeholders.
“There is no perfect time to introduce a complex yet crucial law like the Climate Change Bill. But as the French author Victor Hugo said: nothing is more powerful than an idea whose time has come,” he added.
Nik Nazmi’s comments came after acting natural resources and environmental sustainability minister Johari Ghani reportedly said earlier today that the bill’s tabling is expected to be postponed to allow further engagement sessions with industry players and business associations.