FINANCE Minister II Datuk Seri Amir Hamzah Azizan said the Ministry of Finance (MoF) confirmed that the government’s plan to rationalise RON95 subsidies remains on course, with full details expected to be released by the end of September.
Speaking in the Dewan Rakyat's special chamber on Monday. Amir said: “The government is in the final stages of refining the eligibility criteria and implementation method,” noting that a MyKad-based verification system is being considered alongside e-wallet integration and fuel company applications.
“Through the MyKad terminal system, the card will be inserted into a reader at petrol stations, which will access a central government database to verify eligibility. Those eligible will pay the subsidised rate of RM1.99 per litre, while others will pay the full pump price.”
Amir added that while the T15 criteria are not yet finalised, the government said it is considering a broader threshold, potentially covering up to 90% of Malaysians, as mooted by Prime Minister Datuk Seri Anwar Ibrahim.
“The PADU national data system—integrating records from the Inland Revenue Board (LHDN), Road Transport Department (JPJ), and National Registration Department (JPN)—will serve as the primary reference point for determining subsidy eligibility,” the Minister explained.
The ministry pointed to recent examples of targeted assistance, including electricity subsidy reforms in 2023 which shielded over 85% of households from tariff hikes. A further restructuring in July 2025 has brought reductions of up to 14% for domestic users.
The diesel subsidy rationalisation implemented in Peninsular Malaysia in 2024 also served as a model, with price protections retained for public transport, fishing, and logistics sectors. Direct financial assistance of RM200 monthly was extended to eligible individual vehicle owners, farmers, and smallholders, he added.
According to the government, these efforts helped keep inflation low—1.8% in 2024 and down to 1.3% in the second quarter of 2025.
Amir said, a public portal will soon be launched to allow citizens to verify their subsidy status, with a dedicated contact centre to handle appeals and feedback.
The ministry said the MyKad system had already demonstrated success through the SARA cash aid programme, which recorded a 95% utilisation rate. The scheme will be expanded to 22 million recipients nationwide from 31 August.
“We remain committed to ensuring that any new fiscal policy prioritises the welfare of the majority,” the minister stated.
Amir was responding to Ayer Hitam MP Datuk Seri Wee Ka Siong who called on the government to urgently clarify the classification process for the so-called T15 group—believed to be excluded from subsidised RON95 fuel—warning of widespread confusion and the potential misclassification of ordinary citizens.
Raising the issue, Wee criticised the absence of official explanations. “To this day, no official explanation has been given regarding the definition of the T15 category, the classification method, or the appeal process for affected individuals,” he said.
He questioned the indicators being used to determine eligibility, asking, “Will it be based on gross income, disposable income, place of residence, vehicle type, or outdated data sources?”
Wee cautioned that without transparent mechanisms, many in the urban middle-income (M40) bracket—particularly those facing high transport costs—could be wrongly excluded from the subsidy scheme.
“We cannot allow the subsidy rationalisation to proceed while the people remain uncertain about their eligibility and without any recourse to appeal,” Wee said. - August 25, 2025
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