Safeguards being drafted to curb Budi95 abuse


What to know: Amir Hamzah (left) and Johan speaking during a briefing on Budi95 at Menara KWSP. — GLENN GUAN/The Star

SHAH ALAM: Measures are being drawn up to ensure the Budi Madani RON95 (Budi95) subsidy programme is not abused, says Finance Minister II Datuk Seri Amir Hamzah Azizan.

These could include preventing the person from refuelling after a short time or imposing daily ­limits, he said.

At this stage, he said, the ­government was still evaluating the best approach.

“One possible option is to implement limits, for example, preventing someone from refuelling every 10 minutes.

“This would prevent a person from staying at a petrol station and repeatedly scanning his identity card on behalf of others,” he said.

Another option, he said, might be to set a daily cap on the maximum amount of subsidised fuel a person can purchase.

(Click To Enlarge)
(Click To Enlarge)

“We are still fine-tuning it. Any measures will only be introduced once we’re confident that they won’t create unnecessary difficulty for the public,” he told a media briefing here yesterday.

However, he acknowledged it would be impractical for the ­government to implement mechanisms that were too strict just to plug ­leakages.

“We are aware that there are risks of leakages, but if we were to ‘lock’ down every possible risk to the point where it is overly restricted, it could become impractical and burdensome.

“For now, the main focus is ensuring that fuel companies are ready to implement and support the operational aspects of what we’re planning,” he said.

Amir Hamzah also explained that Malaysians will be able to refuel with three simple steps namely, verifying their MyKad, making payment and refuelling.  

A one-time activation will be required to use the MyKad for the subsidy purpose.

He said those pumping fuel could verify their MyKad at petrol pumps and at the shop at petrol stations, which would have MyKad reader terminals.

It can also be done via certain e-wallet applications and the app of petrol companies.

“The 300-litre cap will be set monthly,” he said.

Amir Hamzah said 99% of the targeted population use less than 300 litres a month.

“If we set the cut-off at, say, 140 litres a month, it means 90% of Malaysians would qualify.

“But the government wants want more people to benefit,” he said.

On a separate matter, Amir Hamzah said that RON95’s subsidised price of RM1.99 per litre will be in place “for a while”.

“But it all depends on the ­circumstances,” he added.

Meanwhile, Treasury secretary-­general Datuk Johan Mahmood Merican said a lost or stolen MyKad cannot be used as a part of a verification tool for the Budi95 programme.

“As you know, the MyKad is a legal document which all Malaysians have to carry.

“If you lose your Mykad, you need to make a police report and for the National Registration Department to remove that MyKad off its system.”

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