Targeted Ron95 Subsidy Rollout By Year End

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THE government is moving ahead with plans to introduce targeted subsidies for RON95 petrol by the end of 2025, with MyKad set to be the main verification tool.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the mechanism will ensure subsidies are only enjoyed by eligible Malaysians, while reducing fiscal strain caused by the long-standing blanket subsidy.
“The targeting of RON95 petrol subsidies — similar to electricity and diesel subsidies — will not affect the wider public,” Amir Hamzah said, adding that details of the system would be announced once fully finalised.
Last month, Prime Minister Datuk Seri Anwar Ibrahim confirmed that eligibility would not be based solely on monthly income but also on other indicators of wealth.
“Eligibility for the RON95 fuel subsidy will be determined using various data sources, including income information from the Inland Revenue Board, the Household Income Survey, and ownership of luxury properties and high-end vehicles,” he said in Parliament.
“This is to ensure a more comprehensive approach so that assistance is directed to those who genuinely need it.”
The planned system will mirror existing initiatives such as Sumbangan Asas Rahmah (SARA), where aid is linked to MyKad.
At fuel stations, Malaysians will be required to verify their MyKad before purchasing subsidised petrol, with data processed through the government’s Central Database Hub. The Domestic Trade and Cost of Living Ministry is also testing a digital monitoring system to prevent leakages to foreigners, similar to the eCOSS mechanism used for subsidised cooking oil.
However, concerns have been raised about system readiness.
MCA’s National Policy and People’s Livelihood Research Advisory Committee chairperson Monna Ong cautioned against a repeat of disruptions experienced during the SARA aid rollout, which saw terminals slow down under heavy transaction volumes.
“Without stronger safeguards, how can the rakyat be assured that petrol stations will not face similar chaos, with long queues and public disorder?” she asked.
Ong urged the government to strengthen system capacity through large-scale testing, ensure backup mechanisms, and improve communication with beneficiaries.
“Welfare programmes must lighten the rakyat’s burden, not worsen it through poor execution and weak governance,” she stressed.
Wanita MCA deputy chairperson Tee Hooi Ling also called for the SARA aid programme to be expanded to cover a wider range of goods and services, noting that “enhancing the programme in these ways will not only strengthen its integrity and fairness but also maximise its impact on recipients”. —  Focus Malaysia

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