MyKad Set To Play Key Role in Targeted RON95 Subsidy Implementation, Says Finance Minister II - Auto News | Carlist.my

As we all know, the Malaysian government is preparing to roll out a targeted RON95 petrol subsidy system around the middle of this year, with MyKad expected to be a key component in its implementation, accordng to Datuk Seri Amir Hamzah Azizan.

The country’s Finance Minister II indicated that the mechanism is still being refined, but the plan involves a two-tier pricing system that differentiates between subsidised and non-subsidised fuel rates. 

He emphasized that the system is being carefully developed to ensure its effectiveness before any formal announcement is made. Speaking at a press conference during the launch of the Rapid KL On-Demand (DRT) open payment system in Cheras on March 27, he highlighted the government’s commitment to making the subsidy distribution process efficient and reliable.

Under this proposed plan, around 85% of Malaysians are expected to qualify for subsidised RON95 petrol with the government aims to integrate MyKad into the process, building on its existing role in the Sumbangan Asas Rahmah (SARA) program. At present, approximately 700,000 beneficiaries use MyKad to purchase essential goods at over 3,500 participating retail stores across the country.

The number of SARA recipients utilising MyKad for transactions is set to expand significantly. By next week, an estimated 5.4 million individuals will be using their MyKad to access aid at various retail locations. 

Amir Hamzah pointed out that since MyKad is already being used successfully for purchasing daily necessities, extending its use to fuel subsidies should not pose any challenges. In an official statement released on March 26th, the Finance Ministry confirmed that 5.4 million SARA beneficiaries would begin receiving aid via MyKad starting April 1.

This marks a substantial increase from the initial 700,000 recipients and aligns with the government’s broader strategy to enhance cash assistance programs. The total allocation for the Sumbangan Tunai Rahmah (STR) and Sara initiatives has reached RM13 billion in 2024, the highest in the nation’s history.

The distribution of SARA aid via MyKad is also being expanded beyond Peninsular Malaysia to include Sabah, Sarawak, and the Federal Territory of Labuan, whereas it was previously limited to the peninsula.

While the inclusion and integration of MyKad as some sort of verification mechanism to ensure the right people are allowed to purchase RON95 petrol at subsidised rates does seem like a no-brainer, much remains murky about how it might be implemented at the pumps. 

With roughly 3 months to go until we arrive at the midpoint of 2025, the government has yet to detail a firm plan to implement a the targeted subsidy. This MyKad verification method does at least sound more effective and convenient compared to the fixed cash aid that the government currently uses for subsidised diesel since 2024.