We may need to present our MyKad (Identity Card or IC) at petrol stations in Malaysia before fuelling up soon. This identification system is among the proposed solutions currently under discussion to carry out targeted subsidies for RON95 petrol that will come into place from mid-2025, as announced by the prime minister Anwar Ibrahim on Friday.
When implemented, 85% of Malaysians will continue to enjoy RON95 fuel at its subsidised price of RM2.05 per litre, while the T15 (top 15% earners), described by the PM as the maha kaya or super rich, will have to pay more. Presently, unsubsidised RON95 is priced at RM2.76 per litre.
How exactly the pump prices will be set remains in question. One solution is for us to use our MyKad before fuelling up, according to transport minister Anthony Loke.
“This means there will be two pricing mechanisms — one for eligible Malaysians, and another for the T15 and foreigners. However, this is just a proposal, and more details will be announced by the Finance Ministry in the coming months,” Loke was quoted as saying by The Edge.
The idea of using the MyKad to set the pump price (whether one should receive the fuel subsidy or not) is not exactly new. Back in 2014, then-deputy finance minister Datuk Ahmad Maslan announced that a similar concept was in the works for the petrol subsidy rationalisation programme.
Back then, the plan was to have three separate tiers of RON95 pricing. Those earning below RM5,000 per month will receive full subsidy, while those earning between RM5,000 and RM10,000 will get partial subsidy. No subsidised fuel for those earning over RM10,000 per month.
For 2025, with the distinction set to a relatively arbitrary T15 classification, we will have to wait and see what the actual income threshold will be set at (to determine if you’re eligible to enjoy petrol subsidies or not).
So dear Malaysians, what do you think of this MyKad idea, and how much should the income threshold be set at? Discuss below.
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AI-generated Summary ✨
Comments express mixed sentiments on the MyKad-based petrol subsidy system, highlighting concerns about fairness, practicality, and potential loopholes. Many believe the income threshold of RM15,000/month is not truly "maha kaya," especially after expenses, and critique the complexity of implementation, fearing abuse and leakage—such as using drivers' ICs or foreign vehicles. Some suggest alternative methods like direct cash transfers or limiting subsidies to vehicle types or engine sizes. There are frustrations about how to accurately assess income and authentic beneficiaries, and skepticism about whether the system can prevent misuse. Overall, opinions reflect a desire for fair, simple, and effective subsidy measures, with many criticizing current approaches as complicated or prone to exploitation, emphasizing that subsidies should target those truly in need.