Targeted RON95 Subsidy: MyKad-Based Two-Tier System Hinted

A MyKad-based two-tier mechanism for the targeted RON95 subsidy was hinted by Finance Minister II Datuk Seri Amir Hamzah Azizan earlier today.

Earlier today, Finance Minister II Datuk Seri Amir Hamzah Azizan reportedly hinted that the government is set adopt a MyKad-based two-tier system for the targeted RON95 petrol subsidy that the government plans to implement starting June this year.

The scheme was revealed, albeit as a rather discreet hint, by the minister when speaking to local reporters right after launching the new open payment system for the Rapid KL On-Demand (DRT) service at the KL-Rapid Depot in Cheras.

According to local daily The Star, Datuk Seri Amir skirted away from divulging details about this mechanism. Instead, the minister only hinted that the MyKad will be used by those eligible to receive the targeted RON95 petrol subsidy.

The minister notes that roughly 85% of the rakyat are set to receive the targeted RON95 fuel subsidy once implemented from June this year.

“The mechanism is being fine-tuned, and we do not want to make any announcement while work is still being done,” clarified Datuk Seri Amir further. He also emphasised the government’s intent at making the system “robust”.

Furthermore, the two-tier pricing system involving both subsidised and non-subsidised RON95 petrol prices would be used. “About 85% of the rakyat will get the subsidised petrol prices and this is what is meant by targeted subsidy for the nation,” adds Datuk Seri Amir further.

Additionally, some 700,000 recipients of the Sumbangan Asas Rahmah (Sara) aid – worth around RM2,100 – are already using their MyKad to purchase sundry goods across 3,500 supermarkets and retailers nationwide. This is set to increase to 5.4 million next week, adds the minister.

Presently, a similar MyKad-based system is being used by 700,000 Malaysians eligible for the Sara aid when purchasing sundry goods at over 3,500 supermarkets and retailers nationwide.

“If 5.4 million recipients can use their Mykad at more than 3,500 shops and supermarkets, what is the difference if the MyKad is used for RON95?" he argued whilst stressing the potential effectiveness of such a system at disseminating targeted subsidies and aid as such.

Expect more details on this in the weeks leading up to the targeted RON95 subsidy implementation date in June this year.