DETAILS regarding the use of the MyKad system for targeting the RON95 petrol subsidy are set to be presented in Parliament in the second half of this year.
Minister of Finance II Datuk Seri Amir Hamzah Azizan, said today the government requires additional time to fine-tune the system to ensure it is robust and sustainable for widespread use among the public.
The MyKad mechanism is seen as a reliable platform to support the effective targeting of the RON95 subsidy.
“At present, for example, the Sumbangan Asas Rahmah (SARA) programme, which distributes RM100 or RM50 a month to 700,000 people, is already being managed through the MyKad system.
“So far, around 3,500 retail stores and supermarkets are capable of processing MyKad transactions,” said Amir Hamzah.
He added, “By next week, it is expected that 5.4 million people will begin using their MyKad to access the SARA aid. Given these figures, it’s clear that using MyKad to target the RON95 subsidy would not be much of a stretch.”
The government had previously proposed in Budget 2025 to implement targeted subsidies for RON95 petrol due to leakage in the current system, with individuals who are not eligible continuing to benefit from the subsidy.
“We plan to implement two pricing stages: the unsubsidised RON95 price and the subsidised RON95 price. More than 85% of the population will still be able to benefit from the subsidised RON95 price in Malaysia,” Amir Hamzah explained.
This targeted subsidy approach, he noted, represents the government's strategy to ensure fair distribution and better management of resources. – March 27, 2025
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