BUDI MADANI Subsidy Program Starts Today - RM200 Diesel Subsidy For Those Eligible

The Ministry of Finance (MOF) has announced the details of the Program Bantuan Subsidi MADANI (BUDI MADANI), aimed at providing subsidies to eligible individuals owning diesel vehicles, as well as agriculture and commodity smallholders.

This follows Prime Minister Datuk Seri Anwar Ibrahim’s recent National Address, in which the Cabinet decided to implement targeted diesel fuel subsidies for users in Peninsular Malaysia.

Diesel vehicle owners meeting certain criteria can also apply under the BUDI Individu category, while agriculture and commodity smallholders may apply under the BUDI Agri-Komoditi category. Recipients in both categories will receive RM200 per month as part of the diesel subsidy program.

Eligibility for BUDI Individu requires applicants to be Malaysian citizens, own non-luxury diesel-based personal vehicles under 10 years old registered with JPJ and having active road tax, and have an annual individual or joint income of RM100,000 or below.

Meanwhile eligibility for BUDI Agri-Komoditi requires applicants to be registered farmers or smallholders with the relevant agency under Ministry of Agriculture & Food Security (KPKM) or the Ministry of Plantation & Commodities (KPK), and to actively generate an annual turnover between RM50,000 and RM300,000.

Applications for BUDI MADANI can be submitted through its website, https://budimadani.gov.my, and will be accepted year-round. The cash payouts will begin in June, 2024 and will be credited directly to individuals’ bank accounts; those without bank accounts can collect their assistance at any Bank Simpanan Nasional (BSN) branch in Peninsular Malaysia.

At the time of writing, diesel prices are still subsidised at RM2.15 (bio-diesel) and RM2.35 (Euro5), most likely due to the weekly fuel price update cycle, which occurs on Wednesday evening. Although not confirmed, it is probable that the diesel price published tomorrow will be the unsubsidised rate.

Referring back to our data.gov.my editorial from yesterday, we mentioned a likely drop in demand for the popular light leisure truck class that brands such as Mitsubishi, Ford, and Isuzu rely heavily on. It would be interesting to see if these brands launch their own initiatives to increase sales or eventually expand their line-up to remain competitive.