MyKad may be used for implementing targeted RON95 subsidies, says Rafizi Ramli – scan IC at the pump

Economy minister Rafizi Ramli said in yesterday’s Dewan Rakyat sitting that the MyKad (identity card, or IC) may be used as a mechanism for the implementation of targeted RON 95 subsidies due in mid-2025, reports The Star.

With this, Malaysians who are eligible for subsidies would need to scan their MyKad at the pump before fuelling up. Their eligibility would be determined through data stored on a cloud database, Rafizi said.

The government is currently looking at two methods to rationalise RON 95 subsidies, with the first being to let petrol prices reflect market prices and to use the savings to provide monthly cash aid to targeted groups.

The second is to implemented targeted subsidies, which is where only eligible Malaysians pay subsidised prices while everyone else pays market prices. “The first is easier to implement but the risk is it can cause high inflation as businesses may use price increases as an excuse to hike up prices,” said Rafizi, who added that the government had been weighing both options for over 20 months.

As for the second option, Rafizi said it would be more difficult to implement but it would help keep inflation under control. The economy ministry is also working on backend matters such as qualification, while the finance ministry is looking into matters involving operations.

On the matter of the much-talked-about T15 category, Rafizi explained that prime minister Datuk Seri Anwar Ibrahim never mentioned that it will be classified by gross household income, saying that this was a “mere yardstick.”

He continued by saying that government is moving away from gross household income and moving to a fairer approach where household size, location and commitments are considered. He added that the ministry had previously stated that net disposable income would be the yardstick for income classification.

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Learn more: RON95 Fuel Subsidy