When a MyKad Malaysian national identity card becomes the key to enjoying subsidized petrol prices, the public is also waiting for the transformation of the system that has been considered unfair and wasteful. Here's the story behind the bold new policy: the RON95 subsidy using MyKad, through the BUDI95 program, which will come into effect at the end of September 2025.
Imagine that you fill up the tank of your vehicle, and the officer asks you to insert your MyKad into a terminal. A few seconds later, the screen lights up in blue meaning you are allowed to buy the RON95 at a subsidized price of RM1.99 per liter. If you have exceeded the quota or are not eligible, the screen will turn red, and you will have to pay the market price. For millions of Malaysians, it is the beginning of a long-awaited subsidy system reform as well as a major practical and administrative challenge.
Fuel subsidies have long been a burden on Malaysia's fiscal burden. So far, blanket subsidies are often abused by non-citizens, commercial, and non-citizens that do not really need them. According to several studies and economic observers, most of the subsidies are enjoyed by the high-income group. (Malay Mail)
With a new approach, the government launched the BUDI95 program: a targeted subsidy for RON95, specifically for eligible Malaysians. This subsidy will take effect from 30 September 2025, with the subsidy price set at RM1.99 per liter for citizens who pass verification through MyKad. (Ministry of Finance Malaysia)
According to the official announcement, this program does not require manual registration, residents only need to ensure that their MyKad and chips are in good condition and have a valid driver's license. (Malay Mail)
Based on several training videos that were spread, verification was carried out through the MyKad reader terminal. MyKad is inserted into the slot, the system then accesses the PADU (Central Database Hub) to check eligibility and the remaining quota. A blue screen indicates eligibility; Red means that the quota has run out or is not eligible. (Lowyat.NET)
After verification, the purchase process proceeds as usual select the number of liters, then pay via cash, debit/credit card, or a fuel station app (e.g. Setel or CaltexGo). (Malay Mail)
To maintain fairness, subsidies are limited to 300 liters per month for personal use. However, e-hailing (ride-hailing) drivers can apply for additional allocations so that their operations are not disrupted. (The Edge Malaysia)
Exception: vehicles with overseas plates or those not registered in Malaysia are not allowed to enjoy the RON95 subsidy price, even if the driver uses MyKad. (Paul Tan's Automotive News)
With the implementation of a targeted system, the government hopes to reduce subsidy wastage and direct funds to social priorities such as education, health, and infrastructure. Some sources estimate that efficiency can reach billions of ringgits per year. (Malay Mail)
The domino effect of these savings can strengthen the people's welfare budget, especially in the B40 group or rural communities who have been less affordable by various types of social assistance.
The MyKad-based system is considered a symbolic step so that national identity is not just an identity card, but a tool for public policy integration. Finance Minister II, Datuk Seri Amir Hamzah Azizan, said:
"There is no need to create a new system or card. MyKad is enough for their identity and medium." (Paul Tan's Automotive News)
This way, drivers of all walks of life can experience the benefits of subsidies not just consumers with luxury vehicles or large consumption.
One of the first practical problems is that the MyKad chip is damaged or illegible. Home Minister, Datuk Seri Saifuddin Nasution Ismail, urged the public to check the condition of their cards before the system comes into effect. If it is damaged, residents can go to the JPN office (State Registration Office) for chip replacement, and the process is promised to be completed within a day. (Malay Mail)
In other words, this new system requires technical readiness as well as adequate public literacy.
The video circulating shows training in the use of the verification tool at the fuel station: the officer inserts the MyKad into the terminal, waits for the connection to the PADU, then reads the results. (Paul Tan's Automotive News)
Criticism has emerged that if every customer must go into the store or counter for verification, there will be congestion at gas stations, especially during peak hours. Some people demand that the terminals be integrated directly into the nozzle (pump) to make the process more efficient. (Paul Tan's Automotive News)
In rural or remote areas, internet connection or signal issues are also a challenge, as the system must be connected to a central database for verification to run smoothly.
The system relies on PADU and large identity databases. Some parties are worried about data privacy and potential misuse. Critics say that linking identities to gasoline transactions can have an impact on aftermarket tracking or misuse of user data. (Malay Mail)
In addition, for middle-class or rural users who are unfamiliar with technology, adapting this system can be a psychological and operational burden.
The day before the launch of the system, some residents began to feel anxiety:
- A taxi driver in Shah Alam, Mr. Ahmad, admitted: "If the system is slow or the device fails to read MyKad, how can we rely on every liter of fuel? It can interfere with daily work."
- Meanwhile, a young girl named Lina (student) said: "I have to make sure my MyKad is good if it is damaged, I am worried that I will not get the subsidy price when I go far."
Residents' responses varied, between optimism for new justice and concerns about practices on the ground.
The fuel subsidy with MyKad through the BUDI95 program is a major step for Malaysia towards a more efficient, fair, and modern subsidy system. However, this transformation is not without obstacles: technical readiness, public education, data protection, and infrastructure must be maintained so that the promise does not weaken on the ground.
If the implementation is successful, the people will not only enjoy cheap fuel with the right target, but they will also witness that public policies in this country can run transparently, accountably, and rely on technology. Herein lies the challenge: ensuring that big ideas on paper don't get wasted in the day-to-day operational process.
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