PETALING JAYA: Malaysians will benefit from a mix of targeted financial relief and lower banking costs beginning this month as subsidised diesel for qualified recipients and the waiving of RM1 interbank ATM withdrawal fees take effect.
The targeted diesel subsidy will allow eligible Malaysian owners of diesel-powered vehicles to purchase up to 200 litres a month at RM2.10 per litre, benefiting an estimated 700,000 motorists nationwide.
As for banking costs, Malaysian debit cardholders will be able to make interbank cash withdrawals at more than 14,000 ATMs and Smart Recycler Machines (SRMs) nationwide without paying the RM1 fee, regardless of their card-issuing bank.
Senior lecturer in economics and financial studies Dr Mohamad Idham Md Razak of Universiti Teknologi Mara said the targeted diesel subsidies are more sustainable than blanket types as it limits government spending to eligible groups rather than the entire market.
“The diesel rationalisation policy represents a move towards greater fiscal discipline and efficiency while still protecting targeted groups.
However, he said that its success would also depend on effective implementation, public acceptance and clear policy communication.
He said linking fuel purchases to identity verification through MyKad would provide better control of subsidised diesel.
“Its effectiveness, however, will depend on enforcement, system integration and real-time monitoring,” he said.
Mohamad Idham also said the government can realistically expect meaningful reductions in subsidy wastage, noting that exact figures depend on prior leakage levels.
He, however, noted that the sustainability of targeted diesel subsidies also depends heavily on global oil prices.
“If oil prices rise significantly, the gap between subsidised and market prices widens, increasing the government’s subsidy bill,” he said.
Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said the MyKad has already proven successful in distributing RON95 subsidies as the government can track fuel consumption patterns.
“This allows them to spot any irregularities that can be associated with smuggling activities.
“As the same mechanism is used for diesel, there will be government savings as the system has proven its efficiency,” he said.
On Tuesday, Finance Minister II Datuk Seri Amir Hamzah Azizan said the RM1 fee waiver for interbank cash withdrawals at ATMs and SRMs came from a collaboration between the ministry and banks following a shortage of ATM networks in certain areas, particularly in rural and remote locations.
“If someone lives in a remote area where there is only one ATM belonging to a single bank, they have to pay the fee to withdraw cash from an account with another bank.
“Since banks have the capacity to absorb the cost, we encouraged them to abolish the RM1 fee,” Bernama quoted him as saying.
