The government is refining a two tier fuel subsidy system now
After the ever helpful diesel subsidy we enjoyed for so many years was removed and fuel prices once again went up not too long ago, many Malaysians were wondering what was next? How will fuel subsidies be kept fair and abused by Singapore registered vehicles, well now we have an answer.
It was reported that the government is set to announce a new mechanism for rationalising the RON95 fuel subsidy, using MyKad for identification, in the second half of this year. This announcement was made by Finance Minister II, Datuk Seri Amir Hamzah Azizan, who stressed that the system is still being refined to ensure its robustness and effectiveness.
Moreover, he stated, “We do not want to pre-announce anything while we are still working on it. The priority is to ensure the system is comprehensive and works smoothly.” According to Datuk Seri Amir, the government also plans to implement a two-tier pricing system for RON95 fuel, featuring both subsidised and non-subsidised price options.
Apparently, the majority of the population, over 85 percent, will benefit from the subsidised price. This new system aims to ensure fairness and affordability, providing a targeted subsidy for those who need it most. The full details of the mechanism will be revealed in the coming months, as the government continues refining its implementation strategy.
Amir made the announcement after visiting the KL-Rapid Depot in Maluri, where he launched the new open payment system for Rapid KL On-Demand, alongside Transport Minister Anthony Loke. The mechanism will leverage the MyKad system, similar to the Sumbangan Asas Rahmah (Sara) programme, which provides financial assistance to low income Malaysians.
On top of that, under the Sara programme, those eligible will receive RM100 or RM50 every month, which they can use at participating retail stores or supermarkets through their MyKad. Currently, 700,000 people benefit from this programme, but the government is expanding this to 5.4 million recipients starting next week.
There are already over 3,500 retail outlets supporting this system for Sara assistance. With this infrastructure in place, Amir noted that implementing the same system for RON95 fuel subsidies would not be a significant challenge. The technology and framework needed to scale up for 5.4 million recipients is already operational, so it should speed up the timeline.
This initiative will ensure more efficient distribution of fuel subsidies, reduce leakage, and help targeted groups access subsidised prices more conveniently, all through the use of MyKad technology. The government’s plan promises to enhance transparency and fairness in the subsidy system, benefiting a large portion of the population.
We got all this from NST and their full article is linked here. Thank you NST for the information and images.
