THE government is currently assessing the most effective approach for implementing the RON95 subsidy rationalisation, focusing on individuals with high incomes and owners of luxury vehicles, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said the main goal was to ensure that those who truly need fuel subsidies continue to receive assistance from the government.
“Currently, the government is in the final phase of refining eligibility criteria and the implementation method for the targeted RON95 petrol subsidies, in consultation with all relevant stakeholders.”
He said this includes exploring multiple implementation mechanisms, such as testing the use of MyKad and e-wallets to ensure that the initiative is implemented efficiently without complicating matters for the rakyat.
He said this in reply to a question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) in the Special Chamber yesterday.
Dr Wee had asked the Finance Ministry to reveal the indicators and criteria used by the government to list individuals or households in the T15 category.
He also asked the Finance Ministry to explain whether it is based on gross income, disposable income, location of residence, type of vehicle or other data sources.
The Finance Minister II said via the MyKad mechanism, it would involve inserting the MyKad into a reader terminal provided by the government.
“This terminal connects to the government’s centralised database to determine eligibility and fuel quota.
“If eligible, the public can purchase RON95 petrol at a subsidised price of RM1.99 per liter.
“If not, they will have to pay the full price at the pump, without subsidy,” he explained, adding that the Padu database will also be used as a reference.
“Padu centralises data from various government agencies including the Inland Revenue Board, Road Transport Department and National Registration Department.
“This approach is intended to ensure that the targeting is holistic and precise, based on verified and up-to-date data, so that aid reaches only those who are truly eligible.”
Dr Wee then asked about the measures taken if someone else uses another person’s MyKad to pump petrol for their vehicle and avoid any unnecessary issues.
Amir Hamzah said by leveraging MyKad and technology, leakage can be effectively reduced.
“The Finance Ministry is carefully considering how to allocate quotas, ensuring that ordinary citizens have enough subsidised fuel, while managing risks of overuse or fraud.”
