No Cash Rebates for EVs Under Budi95

The government has no plans to replace the fuel subsidy under the Budi95 scheme with cash rebates to promote the use of electric or hybrid vehicles, said Finance Minister II Amir Hamzah Azizan today.

He explained that such a change would alter the scheme’s original purpose and could reduce the effectiveness of the subsidy for those who rely on conventional vehicles. “Budi95 is designed to move from a blanket subsidy to a targeted one, ensuring fuel assistance goes to those who truly need it for daily necessities,” he told the Dewan Negara.

Amir Hamzah was responding to a question from Senator Dr RA Lingeshwaran about whether the 600-litre quota under Budi95 could encourage drivers to switch to EVs or hybrids. He was also asked if the government would consider cash rebates for environmentally friendly vehicles as a long-term incentive.

The minister clarified that Budi95 is not intended to influence vehicle choice. Its success is measured by its ability to reduce subsidy leakage, protect target groups, and provide a smooth user experience. 

Efforts to promote EVs and hybrids, he added, are handled through separate initiatives, such as the expansion of charging infrastructure and policies under the National Automotive Policy.

Amir Hamzah also shared that over 106,000 e-hailing drivers, or roughly 65% of the 164,000 registered drivers, qualify for Budi95 subsidies of 600 to 800 litres per month, based on Dec 2025 data.

Eligibility is determined by the monthly travel distance of each driver, compiled from data provided by all e-hailing operators and verified against records from the Land Public Transport Agency (APAD) and the Commercial Vehicle Licensing Board in Sabah and Sarawak.

To prevent misuse, drivers must submit accurate and complete trip records to APAD and LPKP at the start of each month. Those who fail to meet the minimum travel requirement in the previous month will not automatically receive the subsidy.

Source: Bernama