Why might vehicle ownership exclude many B60 families from subsidies?

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Vehicle Ownership Criteria Risks Excluding B60 Families from Subsidies

Using vehicle type as a basis for targeting RON95 subsidies may prove ineffective due to a significant portion of B60 income group families not owning registered vehicles. This method risks excluding these households, as approximately 40% of B60 families lack registered vehicle ownership, according to the Padu database. The issue is compounded by shared vehicle ownership within families, where a motorcycle, for instance, might be registered under one individual's name but used by multiple family members.
Shared Vehicle Registration Creates Exclusionary Risk

The Padu database, which has cross-referenced vehicle ownership with JPJ registrations, indicates that a substantial number of B60 families do not have vehicles registered in their immediate household's name. This means that if subsidy eligibility were solely tied to registered vehicle ownership, these families would be automatically disqualified, regardless of their actual fuel consumption needs. This situation highlights a gap between registered ownership and actual household vehicle access.
Precedent from Diesel Subsidy Rationalisation

Similar challenges were encountered during the diesel subsidy rationalisation programme, demonstrating a pattern of vehicles being registered under names other than the primary users. This practice, where parents might purchase vehicles for their children or individuals register vehicles under another person's name, leads to a significant mismatch between official records and real-world usage. Such discrepancies can lead to inequities in subsidy distribution.
Complex Ownership Structures Hinder Targeted Subsidies

The observed complexities in vehicle registration, such as vehicles being registered under the names of relatives or friends, increase the likelihood of genuine beneficiaries being excluded from subsidy programmes. The Economy Minister, Rafizi Ramli, pointed out that relying on vehicle registration as the sole criterion for subsidy allocation could inadvertently penalise many lower-income households who navigate these shared or indirect ownership arrangements. This underscores the need for subsidy mechanisms that account for these nuanced realities.

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Why might vehicle ownership exclude many B60 families from subsidies?

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