The government is currently reviewing the targeted subsidy mechanism for RON95 petrol, with plans to roll it out by mid-2025. A key aspect of this proposal involves requiring Malaysians to present their MyKad at petrol stations to access the subsidized fuel price. This move aims to differentiate between citizens who qualify for the subsidy and foreign nationals who do not.
Under the proposed system, Malaysians would simply insert their MyKad into a machine, similar to how one uses a credit or BonusLink card, to automatically receive the subsidized rate. This approach seeks to streamline the process and ensure that subsidies are delivered only to those who are eligible.
The introduction of this targeted subsidy was brought to attention following Prime Minister Datuk Seri Anwar Ibrahim's announcement during the 2025 Budget presentation. As both Prime Minister and Minister of Finance, Anwar explained that the current blanket subsidies benefit wealthier citizens and foreign nationals, diverting resources that could be better utilized.
The new plan aims to address this issue by ensuring that the subsidy primarily supports the 85% of Malaysians who need it most. By doing so, the government hopes to more efficiently allocate public funds, enhancing the effectiveness of the subsidy program.
