THE Cabinet is reviewing proposals to expand the BUDI MADANI subsidy distribution framework to diesel assistance schemes, amid broader efforts by the government to reform fuel subsidies and improve the targeting of financial aid.
Government spokesperson Datuk Fahmi Fadzil said the matter was among the key issues discussed during the Cabinet meeting on Wednesday, with ministers focusing on the possible implementation of a diesel subsidy mechanism modelled on the BUDI MADANI RON95 system.
“We are currently examining issues related to diesel, including the implementation of diesel subsidies using a system similar to BUDI MADANI.
“This is among the matters being prioritised by the Cabinet,” he told a weekly press conference.
The latest discussions follow earlier remarks by Fahmi last month that Prime Minister Datuk Seri Anwar Ibrahim had instructed the Ministry of Finance to accelerate efforts to improve the targeting of diesel subsidies through mechanisms similar to those used under the BUDI95 programme.
The government is understood to be evaluating whether the current BUDI Diesel Individual cash transfer system should eventually be replaced with a more integrated subsidy delivery model resembling the RON95 framework.
Asked whether the government was considering redefining the T20 high-income category as part of its wider review of RON95 subsidies for higher-income groups, Fahmi said the issue was not discussed during Wednesday’s Cabinet meeting.
In a separate development, Fahmi revealed that Anwar had also instructed relevant ministries to conduct engagement sessions with hawkers and small traders following concerns over their limited access to formal financial assistance.
The directive came after findings by the Khazanah Research Institute (KRI) showed that only five per cent of hawkers had received financial support from institutions such as Bank Simpanan Nasional, TEKUN Nasional and Amanah Ikhtiar Malaysia.
According to Fahmi, one of the main barriers identified was the unregistered status of many small businesses, which restricts their eligibility for formal financing and assistance schemes.
“The Prime Minister has instructed the relevant ministries to conduct engagement sessions, including directly with hawkers themselves, in order to better understand the issues they are facing.
“This is to ensure that formal financial assistance can be extended and made accessible to them,” he said.
Fahmi also announced that the Cabinet had taken note of the upcoming launch of the MADANI Mediation Centre, an initiative under the Legal Affairs Division of the Prime Minister’s Department aimed at expanding access to alternative dispute resolution services.
He said the centre would provide pro bono commercial mediation services involving disputes valued below RM250,000.
“At present, there are more than 170 qualified mediators available to handle cases requiring mediation,” he said.
The MADANI Mediation Centre is scheduled to be officially launched in Kuala Lumpur on 18 May. - May 13, 2026
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