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The Budi Madani program aims to support diesel users by providing monthly cash assistance to cover the difference between the current and new diesel prices. Approximately 80% of diesel users will benefit from this initiative.
Finance Minister II Datuk Seri Amir Hamzah Azizan announced that the cash aid of RM200 per month was determined based on data from the Department of Statistics Malaysia (DoSM). "The data collected from DoSM surveys focused on diesel vehicle usage, particularly in Peninsular Malaysia," he mentioned during a televised program on Astro Awani regarding targeted diesel subsidy implementation.
Amir Hamzah explained that the cash assistance is designed to offset the price increase, with its amount and mechanism derived from existing data. This initiative is part of the Madani Economy framework, which aims to enhance national revenue for reinvestment in crucial areas, improve public welfare, and boost governance efficiency.
"The targeted subsidy implementation supports the three main goals of the Madani Economy framework. By reducing current inefficiencies, the country's revenue can increase, benefiting public services such as infrastructure, healthcare, and education," he elaborated.
He highlighted the significant rise in diesel subsidy expenditure, which soared from RM1.4 billion in 2019 to RM14.4 billion in 2023. Amir Hamzah emphasized the government's commitment to reviving the national economy for the people's benefit and achieving better fiscal management.
The diesel subsidy rationalization is expected to save the government an estimated RM4 billion, providing greater fiscal flexibility to improve various essential public services.
On May 27, the Ministry of Finance (MoF) detailed the "Program Bantuan Subsidi Madani" (Budi Madani) for eligible diesel vehicle owners, including agricultural and commodity smallholders. The Budi Madani program complements the government's efforts to implement targeted diesel subsidies through the Ministry of Domestic Trade and Cost of Living’s MySubsidi Diesel system.
Eligible individuals, including small farmers and plantation smallholders, will receive RM200 monthly as part of the targeted diesel subsidy implementation. Registration for the Budi Madani program began on May 28, following the decision to implement this targeted subsidy.
This initiative is a strategic move to ensure that financial assistance reaches those most affected by diesel price changes, thereby supporting economic stability and public well-being. By addressing the specific needs of diesel users and smallholders, the government aims to mitigate the impact of rising fuel costs and promote a more efficient allocation of national resources.
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