KUALA LUMPUR (April 8): The government is studying the use of the MyKad in the distribution of targeted subsidies for diesel, following its successful use case for targeted subsidies for RON95 petrol, according to a Berita Harian report on Wednesday.
The use of MyKad under the Budi95 scheme has proven to be effective in reducing leakages and achieving savings without drastically altering Malaysians’ purchasing habits, according to the news daily, citing Finance Minister II Datuk Seri Amir Hamzah Azizan in a recent interview.
Amir Hamzah said the MyKad’s success in delivering targeted RON95 petrol subsidies in both urban and rural areas suggests it could also be adopted for targeted diesel subsidies.
Its feasibility is being assessed, he noted, but stressed that a transition requires a detailed study, given the difference in diesel usage patterns between Peninsular Malaysia and Sabah and Sarawak.
In Sabah and Sarawak, diesel is an essential fuel, used in both land and water transport, as well as electricity generation.
“There are also areas without access to conventional petrol stations, relying instead on alternative distribution methods,” Amir Hamzah said in the interview with Berita Harian.
“If we want to implement [MyKad usage] for diesel, we must ensure that supply is not disrupted. We need time to ensure there is nothing we do not understand that could become an obstacle,” he added.
The move to streamline subsidy delivery comes amid heightened fuel prices following the flare-up of the Iran war. The conflict saw attacks on oil and gas facilities, and more importantly, it blockaded a major shipping bottleneck, the Strait of Hormuz.
The conflict is fresh into a two-week ceasefire, after the US agreed to cease its offensive in exchange for Iran allowing ships to cross the shipping bottleneck.
Targeted subsidies for fuel in Malaysia began with diesel in June 2024. Distribution of the targeted assistance is currently done via cash handouts to eligible individuals.
The same for RON95 petrol, via the MyKad mechanism under Budi95, took effect in October 2025.
The latter’s implementation came later due to its much larger user base of nearly 17 million people, Amir Hamzah noted.