KUALA LUMPUR (Oct 18): More details on the mechanism for targeted subsidies for RON95 petrol should come in the coming months as the government is still in the process of reviewing it, said Transport Minister Anthony Loke.
One of the proposals under discussion, he said, is the introduction of an identification system at retail stations, where eligible Malaysians would need to use their identity cards to verify eligibility before the subsidised price is displayed.
"This means there will be two pricing mechanisms — one for eligible Malaysians, and another for the T15 (top 15% earners) and foreigners. However, this is just a proposal, and more details will be announced by the Finance Ministry in the coming months," Loke told the media in Parliament after the tabling of Budget 2025.
Prime Minister Datuk Seri Anwar Ibrahim, in presenting the budget, announced that the government would begin implementing targeted subsidies for RON95 petrol by mid-2025.
However, the government remains committed to providing subsidies for 85% of the population, which translates into an estimated RM12 billion, said Anwar, who is also the finance minister.
To this, Loke said the government needs to "strike a balance" in rolling out the rationalisation of subsidies for RON95 petrol, which is widely used across the country.
"We are mindful that this will, of course, increase inflation, raise the cost of living, and we expect pushback from the general public," Loke said.
Nevertheless, with the latest announcement, Loke noted that the prime minister has made it clear this is the "way forward," as the government is also committed to elevating the well-being of the rakyat, including implementing several measures such as minimum wage increases and additional cash aid for lower-income groups.
RM750 mil allocation for Transport Ministry
Meanwhile, Loke said the Transport Ministry will receive a total of RM750 million under Budget 2025, with 44% allocated towards subsidies, including for rail and air services.
This includes the continuation of the RM50 unlimited monthly travel pass in the Klang Valley (My50 Pass) and Penang (My50 Mutiara Pass) subsidies, with an allocation of RM226 million, which would benefit over 180,000 users.
Other initiatives include a free travel pass for students and persons with disabilities using KTM Komuter services, with an allocation of RM3.942 million.
In addition, RM200 million is allocated for rural air service subsidies, connecting interior areas of Sabah and Sarawak, which is expected to benefit more than 800,000 rural and interior residents in both states.
The ministry also allocated RM48 million for the FlySiswa Flight Ticket Subsidy and Festive Season Travel, which is expected to benefit more than 160,000 people in Sabah, Sarawak, and Labuan.
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