Gov’t Considering MyKad Verification For RON95 Subsidy Eligibility

Transport Minister Anthony Loke has suggested that Malaysians show their MyKad when buying subsidized RON95 petrol. This is meant to make sure that only qualified citizens receive the subsidies, keeping foreigners from taking advantage of the cheaper fuel.

Malaysiakini reports that the B40 and M40 groups will be given priority in the targeted RON95 subsidy mechanism, which is anticipated to launch by mid-2025. High-earning Malaysians can anticipate paying more for RON95 gasoline starting in mid-2019, which will save the government approximately RM8 billion in subsidies.

PM Anwar claims that the government currently spends RM20 billion a year on blanket subsidies for RON95 gasoline, which disproportionately benefit foreigners and Malaysia's richest 15% of earners.
This implies that two pricing structures will exist: one for Malaysians who qualify and another for T15 holders and foreign nationals. But as Loke notes, as cited by The Edge, "this is just a proposal, and more details will be announced by the Finance Ministry in the coming months."

According to Loke, using MyKad would work similarly to using a BonusLink or credit card at gas stations.
“When you go to the petrol station, just like you insert a credit card or BonusLink card, you only need to insert your MyKad for the subsidized price to be displayed.”
However, Focus Malaysia reported that X users are against the idea of using targeted subsidies for RON95 fuel because they believe that setting prices for different individuals using our identity cards and other methods will definitely complicate matters. Alternatively, they proposed making use of vehicle license plates as the indicator.

Credit: X / Thevesh.


Additionally, according to Focus Malaysia, a number of X users urged that fuel prices be left to fluctuate and that cash transfers be made to individuals who genuinely require help in order to offset the higher RON95 costs.