Petrol Subsidy & Foreigners

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hi,

Re-locate the Malaysian immigration, customs, and fuel inspection, checking and verification unit towards the Singapore end of the Causeway. And then with the usual Causeway back-up all cars exiting the Causeway will have less than 20 litres of fuel. No problem.   

I think that the 20 litres ruling will be "exempted" for Singapore. Why bother. Singaporeans get so much stress from their own government why load it on from the Malaysian side where the Singaporeans are only tourists.

After all, Singapore's 3/4 full fuel tank ruling isn't to stop Singaporeans from filing up cheaper in JB and taking advantage of a "freebee susbidy" from the Malaysian government. It's to stop Singaporeans from avoiding tax on Singapore fuel.

I didn't read that anyone on the Malaysian side will be checking petrol gauges? It seemed that the idea is that foreign registered cars can't get more than 20 litres. Unless they go to another petrol station. There seems to be a few bugs in the delivery system.

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I read that the fuel subsidy will not be available to foreigners and buyers will have to produce the MyKad identification card to get subsidised fuel after May 2010. I believe this is being introduced to mainly stop people from Singapore buying cheap petrol.

What is the situation with MM2Hers? Do you have MyKad? Are they also classified as foreigners?

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hi, sukhi,

I've merged your post with this topic which answers a few of the points that you raise.

Folks from Singapore can't drive out of the Republic without having 3/4 of a tank already full of petrol so there's not much topping up to be done in JB if it's a quick trip for a seafood meal in RM. Also they get checked by customs on the way back to make sure there are no petrol cans in the boot, and no DVDs, or ciggies.

The move by the Malaysian Government seems to be part of the general reduction of subsidies. A few weeks ago it was sugar.

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Sunday January 17, 2010
Still in the dark over system

The Government’s plan to impose a two-tier pricing mechanism
for petrol by May 1 has given rise to many questions but answers
are hard to come by. Just how will the mechanics be worked out?

http://thestar.com.my/news/story.asp?file=/2010/1/17/focus/5485032&sec=focus

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hi,

Nice article stuurman. I'm going to fill up a few 5 litre containers well before May 1st. This isn't to save a few RM on the petrol price,  it's to avoid having to fill up during the total confusion.   

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hi,

A recent letter to the Star highlighted the issue of "local foreigners" :


January 19, 2010 : Unfair to penalise legitimate ‘foreigners’ living here
 AM an Englishman, married to a Malaysian for more than 10 years, and living in Malaysia. I own and manage three small manufacturing businesses in Malaysia which are 100% export oriented. Between these three companies, they bring some RM10mil worth of foreign exchange into the country each year. More than 90% of our purchases are from Malaysia, so the vast majority of this foreign exchange stays within Malaysia. We employ 25 people in the businesses, all of whom are Malaysians.

Every month, I pay income tax to IRB, both personally and from each of the three businesses. When the petrol price changes become effective on May 1, what happens to myself and many other “spouses” who are contributing to the progress of this wonderful country that we have chosen to be our home? Are we going to be penalised? What happens to all of the people invited to live here under the MM2H programme?

I am in full agreement that foreigners simply coming to Malaysia to take advantage of subsidised fuel should not be allowed to have this luxury, but it is grossly unfair that the “foreigners” living here legitimately are penalised. More disturbing is that in recent days, I have read a number of newspaper reports and interviews on the subject, yet there appears to be little response. Is it that investors are not welcome here? Should we relocate our businesses to other countries?

FRUSTRATED LOCAL FOREIGNER,
Petaling Jaya.


My view is :

1). The government wants to reduce the fuel subsidy, and it also wants to be popular.
2). Foreigners don't vote.
3). Voters don't want to pay more for petrol, or anything else for that matter.
4). 60% of Malaysians don't pay income tax so even if Najib gets advice on various stealth measures and tax credits from Gordon Brown (current UK PM) it won't help.
5). So there's going to be a two-tier (or more) system. This will upset foreigners, and upset those who don't get a big enough "credit."

As sure as night follows day    , within hours of May 1st there will be rent-seekers standing around at the petrol stations.

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hi,

Guess what? In Friday's The Sun a front page article stated that the proposed May 1st two-tier petrol price system was going to be put on hold. Seems that nothing had been worked out ready for May 1st, and there are conflicting views on what to do. So the PM has put it all on hold, at least for 2010.

The article said that someone will make a statement this week. Way to go. The old mercedes already costs me more per week in fuel than I spend on food for 2.   

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hi,

The drivers amongst us may have noticed the stickers on all the petrol pumps warning that non-Malaysian registered cars are restricted from buying Ron95 and have to purchase Ron97. This warning started at the begining of this month.

There's also a restriction on diesel. Non-Malaysian regoisterted cars can only buy up to 20 litres. There's also a restriction on purchase within a certain distance of borders.

I didn't quite read it all before the petrol started spilling out of the bike's tank, oops.   

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I hadn't noticed actually !
I remember hearing the government boast in the Star about this a few months back, but never thought they would move try to act on it.
I guess we will see more and more non-registered car owners use their credit card to buy their petrol

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Have been reading a lot about false number plates recently. People are very resourceful, and authorities tend to be lack on enforcement, so I see people being readily able to get around this restriction!!

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Again, I wonder how this will affect me in a boat, especially if I have it on the Langkawi Yacht Register  http://www.langkawi-gazette.com/marine-guide/my-boat-registration

I will be a foreigner, but the boat will be a Malaysian Flagged Vessel.

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hi, Breathless,

Ask Mabel for a number plate.     

I bought more petrol for the bike today so I was able to complete reading the petrol pump notice. It says that the limit on 20 litres of diesel applies within 50km of any borders.

Does anyone care with boats if they're less than super-tanker size. I guess with the Langkawi Yacht Registration you'll be officially Malaysian Registered and you can buy away. That's why I'm heading towards the LYR.

Pulling up to the petrol station in the boat could be a problem though, you'll probably drag the anchor on the tarmac.