As announced in Budget 2025 by prime minister Datuk Seri Anwar Ibrahim, targeted subsidy for RON 95 petrol will come into place from mid-2025. The two big things left to be determined are exactly who will be excluded and the mechanism.
A two-tier price at the pump or selection defined by vehicle type have been among the solutions ventured. Meanwhile, the government says it is looking at the use of MyKad (identity card, or IC) as well as e-wallets as a means to carry out targeted subsidies.
This was indicated by second finance minister Datuk Seri Amir Hamzah Azizan, who said that these solutions would help determine who is eligible to receive aid and who is not, The Star reports.
He reiterated that the RON95 subsidy rationalisation was necessary but will not affect 85% of Malaysians. He said that based on current data, it is estimated that over 40% of petrol usage is by foreigners, the commercial sector and smuggling.
“As the level of RON 95 petrol subsidy is around RM20 billion a year, if leakage to foreigners, the commercial sector and the rich can be solved, it’s bound to save up to RM8 billion a year,” he explained.
He added that the government is still determining the criteria for the T15 group, which will not be covered by subsidised fuel when the rationalisation programme begins. He said that the government will not just rely on data from the statistics department’s household income survey to determine eligibility. “We will take into account all views,” he explained.
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