Petrol Subsidy in Malaysia: Why Are Foreign Contributors Left Out?

gpmarketing7
Sep 24
2 min read

Malaysia recently announced a targeted petrol subsidy that benefits MyKad holders. While the initiative is designed to ease the financial burden of rising living costs for locals, it raises a critical question: What about the foreigners who live, work, and actively contribute to Malaysia’s economy?

Foreigners Are More Than “Guests”

Foreign professionals, expatriates, and workers with valid iKad or work permits are not just temporary visitors. Many have lived in Malaysia for years, some even decades, building careers, raising families, and integrating into society.

They contribute by:

Paying income taxes and levies.
Spending on rental, utilities, transport, and food.
Supporting local businesses and services through their daily consumption.
Filling skill gaps in industries like healthcare, education, IT, finance, and construction.

Their contribution is undeniable. Yet, when it comes to basic relief measures like petrol subsidies, they are excluded.

The Contradiction in Malaysia’s Global Vision

Malaysia positions itself as a regional hub for talent and investment. The government and businesses alike encourage foreign professionals to choose Malaysia for work opportunities, highlighting the nation’s strategic location, affordability, and lifestyle appeal.

But when foreign workers see that essential benefits exclude them, the message received is conflicting.

This creates a gap between the nation’s ambitions to attract global talent and the lived reality of those already here.

Why Contribution Should Be the Measure

In an economy as interconnected as Malaysia’s, the argument for including foreigners in subsidies is simple: contribution matters.

Taxes and levies from foreign workers already add significantly to government revenue.
Consumer spending by expatriates supports local shops, eateries, and services.
Skilled workers strengthen industries and help Malaysia stay competitive.

Excluding them from subsidies risks sending the wrong signal — that contribution counts for little if you are not a citizen.

The Broader Impact

When the cost of living rises for foreigners, it doesn’t only affect them personally. The consequences ripple outward:

Employers may struggle to attract or retain foreign talent.
Families supported by foreign workers (both in Malaysia and abroad through remittances) feel the strain.
Local businesses lose part of the spending power that fuels their growth.

In short, the exclusion of foreigners from subsidies doesn’t just hurt them — it weakens the very economy that benefits from their presence.

Moving Toward an Inclusive Malaysia

If Malaysia truly wants to strengthen its position as a global economic hub, perhaps it’s time to rethink how subsidies are structured. A more inclusive approach — one that considers both citizenship and contribution — would not only be fairer but also reinforce Malaysia’s reputation as a welcoming and globally minded nation.

Because in the end, when foreigners thrive in Malaysia, Malaysia thrives too.