Billions Saved But Where S The Benefit

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This weekend, many may find themselves caught in long queues and rising tempers at petrol stations as the new RON95 subsidy scheme kicks in.
Under this plan, RON95 is fixed at RM1.99 per litre, but only up to 300 litres a month for each eligible driver. Once that limit is reached, the same fuel will still be available, but at the market price of around RM2.60 per litre, depending on global oil prices.
The process is designed to be straightforward. Drivers only need to verify their MyKad number through the official website, while the Setel app shows how much quota is left. Malaysians with a valid MyKad and an active driving licence qualify automatically.
Foreign-registered vehicles are completely barred from RON95 and must use RON97 instead. Foreigners driving Malaysian-registered cars can buy RON95, but only at the market price.
ADSThrough this targeted approach, the government projects annual savings between RM2.5 billion and RM4 billion. Officials claim these funds can be redirected to education, healthcare and infrastructure. Many agree it is time to plug long-standing leakages, particularly where subsidised fuel was enjoyed by non-citizens.
For most motorists, 300 litres is sufficient. But those who cover long distances daily, such as ride-hailing drivers, delivery riders and rural families, may find the cap restrictive. There are also concerns that higher fuel costs for transport companies could slowly push up the price of goods and services, adding to the rakyat’s burden.
Is the system fair?
Loopholes remain a real concern. Foreigners married to Malaysians could still gain indirect access to subsidised fuel if locals allow their names to be used.
The examples are not hidden: Pakistanis running workshops, Nepalis and Bangladeshis managing mini-markets, Indonesians on spousal visas operating restaurants and laundries, even Myanmar workers handling logistics.
All it takes is a few locals willing to cooperate, and the system can be twisted, weakening the savings it was meant to protect.
Adding to the uncertainty are the shifting explanations since the policy was introduced. Different media statements and conflicting versions from the government have left the majority unsure of what actually applies.
At the same time, households with multiple vehicles, especially those from higher income groups, stand to gain more overall than a B40 family with only one car or motorcycle. This naturally raises a difficult question: is the system really fair, or does it risk widening the gap it was supposed to close?
Corruption and abuse of power also hang heavily over any system involving billions of ringgit. Who will ensure petrol station operators follow the rules? Who will prevent enforcement officers from turning a blind eye?
Without strict oversight, loopholes could be exploited by those with influence or connections, and once again it is the rakyat who pays the price.
There is also little detail on what happens when the system fails. If the digital checks at the cashier malfunction, will drivers be forced to pay the unsubsidised rate or be turned away?
One frustrating incident is enough to sour public trust, and technical hiccups are not a small matter when they affect something as essential as daily transport.
ADSTrust remains fragile
The ultimate question remains: will the billions supposedly saved be felt by the rakyat in real, visible improvements, or will the money vanish into vague national expenditure? The rakyat have heard similar promises before.
For this policy to earn support, the government must prove that every ringgit saved comes back to the people in ways they can see and feel. Otherwise, the subsidy reform will be remembered not for the billions saved on paper, but for how much it tested the patience of the rakyat at the pump.
Many also remember the Najib Abdul Razak days, when every major announcement usually came with something the rakyat could feel in their pockets, whether a rebate, a handout or some form of direct assistance.
Today, rakyat are being asked to accept stricter rules and the promise of national savings, but without clear evidence of how those savings will flow back to them.
That is why trust remains fragile. The rakyat want more than just numbers; they want proof that policies bring real benefits to their daily lives. - Mkini
MAHATHIR MOHD RAIS is a former Federal Territories Bersatu and Perikatan Nasional secretary.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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