Kuala lumpur: The targeted diesel subsidy programme under BUDI MADANI, employing MyKad for verification, is set to slash fuel leakages by up to one billion litres a year, leading to reduced subsidy spending and a steadier domestic fuel supply.
According to BERNAMA News Agency, Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted that subsidy leakages had been rampant in the diesel sector due to limited MyKad-based verification compared to RON95 petrol. The implementation of MyKad ensures that subsidised fuel is accessible only to eligible Malaysian citizens, compelling non-citizens to pay the market price for diesel.
Amir Hamzah estimated that the initiative could diminish diesel leakages by one billion litres annually, aiding in curbing improper subsidy payments and stabilising the nation's fuel supply. This announcement was made during a media briefing on the targeted diesel subsidy reform, attended by Sabah Deputy Chief Minister II and state Finance Minister Datuk Seri Masidi Manjun.
The diesel subsidy mechanism will replicate the targeted RON95 subsidy model and be extended nationwide, encompassing Sabah and Sarawak. Amir Hamzah clarified that eligible recipients of the basic subsidy would not need to register, as eligibility will be automatically determined through existing government databases. However, those seeking an additional 100 litres per month under the BUDI Diesel programme must apply via an online portal or at Inland Revenue Board (LHDN) offices.
Amir Hamzah assured that the MyKad usage would not present challenges, even in rural and remote regions, as evidenced by its successful implementation in the Sumbangan Asas Rahmah (SARA) programme. In Sabah alone, about 1,493 premises are part of the SARA programme, with utilisation rates nearing 100 percent across all areas, including remote locations.
The positive experience from SARA indicates that MyKad can effectively serve as a verification and redemption tool, gaining public approval in Sabah and Sarawak. Amir Hamzah affirmed the government's commitment to continuous stakeholder engagement and feedback collection to ensure the smooth implementation of the targeted diesel subsidy programme, without disrupting the aid entitled to beneficiaries.