The Malaysian government is considering a new plan to make the RON 95 petrol subsidy fairer for the people.
Economy Minister Rafizi Ramli suggested that the use of MyKad (national identity card) at petrol stations could allow only eligible Malaysians to access subsidized petrol prices.
With this method, eligible users will scan their MyKad at the pump to confirm their subsidy status.
The government is evaluating two main approaches to fine-tuning these subsidies.
The first option is to eliminate subsidies entirely and offer financial aid directly to those in need, which is easier but may lead to the risk of increased inflation.
A second, more complex option is to maintain fuel subsidies but only for those who meet certain criteria, which could help prevent inflation.
In addition, the government aims to classify eligibility based on various factors such as household size and cost of living, not just income.
The Ministry of Economy handles eligibility regulations, while the Ministry of Finance focuses on operational details.
This targeted RON 95 subsidy is expected to be fully implemented by mid-2025.
