KUALA LUMPUR (Aug 19): The Ministry of Finance (MOF) said on Tuesday that the mechanism for the rollout of the RON95 subsidy rationalisation, which is slated to be revealed in September, is still being finalised. 

The ministry, in a written Parliamentary reply on Tuesday, said it is still refining the eligibility criteria and working with various stakeholders on the most effective delivery methods. Potential options include using MyKad, e-wallets, and mobile applications from fuel companies to ensure a smooth transition that does not burden consumers.

The ministry also clarified that only non-citizens and those with the financial means to afford unsubsidised fuel will not be eligible for the fuel subsidy, which currently costs the government about RM19 billion a year. The ministry had previously said that the transition from a blanket subsidy for the RON95 petrol to a targeted subsidy system could save the government up to RM8 billion a year. 

Eligibility will be determined by cross-referencing multiple data sources, including income records from the Inland Revenue Board (LHDN) and household income surveys (HIS) from the Department of Statistics Malaysia (DOSM). The framework will also leverage data from the government’s centralised socio-economic database, Pangkalan Data Utama or Padu, as previously mentioned by Finance Minister II Datuk Seri Amir Hamzah Azizan. Factors like ownership of luxury homes and vehicles will also be considered before the final framework is unveiled.

Once the rationalisation is enforced, the MOF said it will work closely with the Ministry of Domestic Trade and Cost of Living (KPDN) to monitor fuel price stability and protect the public's interest.

The written response was issued to several Members of Parliament seeking clarification on the initiative. Former prime minister Datuk Seri Ismail Sabri Yaakob (PN-Bera) had specifically requested an explanation on how eligible groups would be identified, while Opposition leader Datuk Seri Hamzah Zainuddin (PN-Larut) had asked about the timeline, the mechanism for the subsidy, and the basis for the government's claim that 85% of Malaysians would not be affected by the reform.

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