THE government will proceed with the rationalisation of RON95 petrol subsidies in the second half of this year (2H25) as scheduled.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the Ministry of Finance (MOF) is currently focused on refining the eligibility system for subsidy recipients.

“As previously discussed, we will proceed with the implementation of the subsidy rationalisation, but for now, the most important thing is to ensure the system that determines eligibility is implemented properly,” he said as quoted by Utusan Malaysia.

He added that the Cabinet is in the midst of discussions on the subsidy disbursement mechanism, including improvements to ensure only eligible groups receive the benefits.

“The ministers and Cabinet are discussing the subsidy release mechanism, including enhancing the eligibility system to make sure only those truly qualified will receive this assistance,” he said.

Amir Hamzah said the government will use MyKad for the implementation, as it has been effective in schemes such as Sumbangan Asas Rahmah (SARA).

“We have used MyKad in various schemes and it has proven effective, so now MOF is fine-tuning the system to be used for RON95 subsidy implementation,” he added.

Prime Minister (PM) Datuk Seri Anwar Ibrahim had earlier announced the move in October 2023, projecting savings of up to RM8 billion annually.

To ease public concerns, Anwar said government studies show that around 90% of Malaysians will not be affected by the planned subsidy cuts.

He also stressed that an estimated RM3 billion-RM4 billion in subsidies are being enjoyed by foreigners, and suggested that future purchases of RON95 may require MyKad verification to curb leakages.

The RON95 rationalisation follows the diesel subsidy initiative implemented on June 10, 2024, which has helped reduce leakages and is expected to save RM7.5 billion annually after surpassing the original RM4 billion target. — TMR