Non-Citizen Vehicles Prohibited From Enjoying RON95 Subsidy

The government does not aim to extend the RON95 subsidy to vehicles owned by non-citizens. It aligns with the government's goal of strengthening the country's fiscal condition, as outlined in the 12th Malaysia Plan, according to the Economy Ministry.
“The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure, or a reduction of 21.9 per cent, to the total subsidy expenditure, if the subsidies are only given to the B85 group and citizens.

“By ensuring that the targeted RON95 subsidies do not involve non-citizens, it will give savings of RM0.3 billion (2.0 per cent) to the government,” it said in a written reply on the Parliament website today.

The ministry was responding to an inquiry from Kuala Krai MP Abdul Latiff Abdul Rahman over its plan to permit Bruneian-registered cars to utilise RON95 in Malaysia.

The government will begin implementing the RON 95 subsidy in mid-2025, impacting 85% of Malaysians, with subsidy eligibility decided by the Basic Expenses for Decent Living (PAKW) indicator. Unlike the earlier classification system for household income groups, PAKW is intended to be customised rather than a one-size-fits-all solution.