Finance minister II Amir Hamzah Azizan has defended the government’s decision to extend RON95 petrol subsidies to all Malaysians regardless of income, saying that the current system still delivers meaningful savings.
Amir was responding to criticism that subsidies for higher-income groups should be phased out to maximise savings.
“The government always needs to take into account the realities faced by people on the ground. With the system we have now, we are still achieving savings,” he said during a media briefing.
He said it was important not to dismiss the value of the savings, even if the figures may seem modest to some.
“Is RM2.5 billion small or big? Every ringgit saved will be used in other ways to benefit the people,” he said.
The government initially estimated savings of up to RM8 billion from the RON95 subsidy rationalisation, but Amir yesterday said that it would be around RM2.5 billion to RM4 billion.
Beginning Sept 30, the government will provide up to 300 litres of RON95 petrol per month at RM1.99 per litre for all Malaysians aged 16 and above with a valid driving licence.
Amir also addressed concerns over leakages in the MyKad system, which is being used to verify eligibility, saying the government was refining mechanisms to detect abuses.
“At the same time, we cannot let these holes deter the implementation of subsidy rationalisation. If we wait for a perfect system, the country will never be able to move forward,” he said.
He added that the rationalisation plan relies on simple eligibility criteria – Malaysian citizenship – so it would not need the full complexity of the government’s Central Database Hub (Padu).
Meanwhile, Treasury secretary-general Johan Mahmood Merican said TNG Digital Sdn Bhd had been tasked with managing the backend digital infrastructure for the subsidy mechanism.
The central system supporting Budi95 verification across all fuel retailer apps is understood to be developed and operated by Nadi Tech Sdn Bhd, a wholly-owned subsidiary of TNG Digital.
