THE Malaysian Government of is developing a dedicated registration system for its citizens holding Singapore driving licences, after thousands were found to be excluded from the newly launched Budi95 fuel subsidy programme due to data-sharing limitations between the two countries.
The Straits Times reported today that the scheme, which began nationwide on 30 September, allows eligible Malaysians to purchase up to 300 litres of RON95 petrol per month at a subsidised rate of RM1.99 per litre.
However, those with Singapore-issued licences – often workers who exchanged their Malaysian permits to meet Singaporean legal requirements – currently remain ineligible.
“They are entitled to the subsidy. In principle, they are Malaysians and live in Malaysia. The only thing different is that they hold Singapore driving licences,” said Transport Minister Anthony Loke at a press conference in Putrajaya on Tuesday.
He added that the lack of integration between Singapore’s and Malaysia’s transport databases, compounded by Singaporean privacy laws, had delayed implementation. The new system is expected to be ready within two weeks, and will allow affected citizens to register manually.
While the exact number of those impacted is unknown, official estimates suggest that between 200,000 and 250,000 Malaysians commute daily to Singapore for work.
The Budi95 roll-out proceeded largely without technical issues, but sparked confusion at the pumps. Petrol stations reported high volumes of customer queries, mostly about pricing and how the subsidy was applied.
Many drivers were surprised to see the unsubsidised rate of RM2.60 per litre displayed during fuelling, even though they were later charged the discounted rate.
“I wanted to pump RM50 worth of petrol, then I looked at the pump, it showed RM60. I don’t understand how the subsidy works,” said 70-year-old retiree Liew Boon Siew at a Shell station in Sungai Besi.
Another motorist, Christine Chan, expressed frustration at initially being charged the higher rate, before being informed that the rebate was applied after the fuel was dispensed.
In Johor Bahru, attendants guided motorists through the process, including scanning their MyKad or verifying identity details at help counters.
“The pump system charges fuel at the full price. The subsidy is applied after the tank is filled, so drivers effectively receive more fuel for the same amount,” explained pump attendant Ishak Othman.
Under this system, a RM100 payment yields approximately RM130.65 worth of fuel, with the additional litres reflecting the government rebate.
Medical officer Mohd Razmi Mohd Shah, who typically received 48 litres of RON95 petrol for RM100, noted he now gets around 50 litres under Budi95. “It’s still a bit confusing, but I’m getting more fuel than usual so that’s a good thing,” he said.
Petrol station operators said they were prepared for the roll-out. Syahrir Reza Ahmad Fuad, who runs a station in Kuala Lumpur, said staff underwent months of training and logistical planning to manage the launch.
“We made sure we had more manpower during peak hours to educate customers about why there is a price difference from what they are actually charged,” he said.
Transport authorities reported that only a small percentage of Malaysians – 0.88 per cent, or fewer than 75,000 – were currently unable to access the subsidy due to outdated or unrecognised identity records, particularly among police and military retirees.
These individuals will need to update their documentation to receive the discounted rate.
In contrast, more than 878,000 foreigners, including 18,000 permanent residents, hold Malaysian driving licences but are not eligible for fuel subsidies.
Since the scheme’s introduction, daily driving licence renewals have surged by nearly 50 per cent, from 17,000 to 27,000, according to the Road Transport Department.
Malaysia, which spent RM80 billion on subsidies in 2023 – with fuel accounting for nearly a quarter – expects to save between RM2.5 billion and RM4 billion annually through the targeted Budi95 initiative. - October 1, 2025
