Many Malaysians are still wondering how the RON95 fuel subsidy will be rationalised and what mechanism will be used for its implementation. Finance Minister II, Datuk Seri Amir Hamzah Azizan, has confirmed during the launch of the Rapid KL On-Demand open payment system today that MyKad will be used to facilitate the subsidy system.
According to the senator, the RON95 fuel subsidy will follow a two-tier pricing model, where MyKad will determine eligibility for subsidised fuel prices. Under this system, individuals with a household income of RM12,000 and above will pay the non-subsidised rate, while others will continue to receive the subsidy. Amir Hamzah stated that more than 85% of the population would benefit from this approach.
However, he refrained from making an official announcement, noting that the mechanism is still being refined. He emphasised that the government does not want to introduce the system prematurely, as ensuring its robustness is a top priority.
To illustrate how the system might work, Amir Hamzah referred to the Sumbangan Asas Rahmah (SARA) programme, which distributes RM100 or RM50 per month to recipients for purchasing essential goods at 3,500 retail stores and supermarkets. Currently, the programme supports 700,000 recipients, a figure set to increase to 5.4 million next week. He highlighted that if MyKad can be used effectively for such a large-scale initiative, implementing a similar system for RON95 subsidies should be feasible.
Prime Minister Datuk Seri Anwar Ibrahim announced the shift from a blanket fuel subsidy to a targeted one during the Budget 2025 presentation. The restructuring is scheduled to take effect in mid-2025.
Malaysia currently allocates RM20 billion annually to maintain the RON95 price at RM2.05 per litre. By transitioning to a targeted subsidy model, the government expects to save RM8 billion.
(Source: Paultan.org / NST)
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