THE government will review and implement a phased targeting of subsidies for essential items including sugar, rice, and cooking oil once the BUDI MADANI RON95 (BUDI95) fuel subsidy programme runs successfully.
Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat that the initiative aims to prevent leakages and ensure that assistance reaches only those who truly need it.
"The government will examine the re-targeting of subsidies and aid for other subsidised goods such as sugar, rice, and cooking oil in a gradual and phased manner.
“This measure is intended to ensure no leakages occur and that the subsidies are enjoyed only by those who genuinely require them, as we have implemented for diesel and BUDI95," she said.
Lim highlighted that the current priority is to ensure the smooth implementation of fuel subsidy targeting, which will serve as a foundation for a more comprehensive subsidy restructuring.
To guarantee that subsidised essential goods reach the intended recipients, the government is strengthening enforcement operations through coordinated action with other enforcement agencies, including Ops Tiris and Kita Gempur.
She added that the government will ensure the availability of subsidised items at all Program Jualan Rahmah MADANI sales events.
"For 2025, the Jualan Rahmah programme will be expanded to at least twice a month in every state constituency, totalling 600 events, compared to twice a month per parliamentary constituency previously," Lim said.
Lim also confirmed that targeted subsidy programmes for diesel, RON95, and electricity are part of broader efforts to curb unproductive spending, including costly mega projects, and to ensure that subsidies reach intended beneficiaries.
Through BUDI95, the programme has been extended to more than 17,900 registered fishermen under the Malaysian Fisheries Development Board (LKIM), over 4,300 registered private boat owners in Sabah, and 1,400 private boat users in Sarawak.
"Under the BUDI MADANI Diesel Subsidy targeting, the government has approved fleet card access for 121,618 companies covering 355,074 vehicles. This enables vehicles to obtain diesel at the subsidised rate of RM2.15 per litre.
The measure ensures logistics costs do not rise sharply and essential goods remain affordable," she said.
When questioned about whether the Ministry of Finance would recommend Parliament debate trade agreements with the United States, Lim clarified that this falls outside the ministry’s jurisdiction. - November 3, 2025
