Kota Kinabalu: The implementation of the Subsidised Petrol Control System (SKPS) and Budi Madani Ron95 (Budi95) is not only aimed at improving the government’s delivery of subsidies to the people, but also represents an effective strategy to address the persistent problem of fuel subsidy leakages that have plagued Malaysia for years.
Minister of Domestic Trade and Cost of Living (KPDN), Datuk Armizan Mohd Ali, said that this strategy is aligned with the ministry’s core focus of enhancing enforcement agility.
He said the agenda involves integrating risk management elements and strengthening enforcement through digital enforcement mechanisms.
Armizan explained that with SKPS and Budi95, the entire chain of fuel sales and purchases from oil companies, to petrol stations, to companies, and finally to individual consumers will now be digitally recorded.
“Purchases made via fleet cards under SKPS for companies and MyKad under Budi95 for individuals will automatically be logged in the system. This allows for real-time monitoring and enforcement, including the detection of suspicious activities such as repeated purchases or unusually high volumes.
“This system resolves the issue of manipulation of sales and purchases across the chain, which has been the modus operandi for smuggling and diversion in the past. With digital records, enforcement can now be conducted more swiftly and effectively compared to before, when there was no data to track transactions,” Armizan said.
He emphasised that the system creates accountability at every level, ensuring that the substantial allocation by the government for fuel subsidies truly reaches the targeted groups.
The nationwide rollout of the targeted RON95 subsidy scheduled for today (30 Sept) and KPDN will work closely with the Ministry of Finance (MOF), which owns the system, to trace any suspicious transactions.
KPDN also reminded all users and companies of their responsibilities in using fleet cards, MyKad and other permitted methods of purchase.
“Firm action will be taken against any party found guilty of manipulation, diversion, or smuggling of RON95 petrol under the Control of Supplies Act 1961 (Act 122) and its current regulations,” he warned.
Individuals convicted of offences face fines of up to RM1 million, imprisonment not exceeding three years, or both. Companies found guilty may be fined up to RM2 million.
The pilot phase which ran on 27 and 28 September 2025, proceeded smoothly. It initially involved two categories: security personnel and recipients of the Rahmah Cash Aid (STR).
According to MOF records, on the second day alone (September 28), 27,916 users in Sabah benefited from Budi95, purchasing petrol at a subsidised retail price of RM1.99 per litre.
The full implementation will begin on 30 September and is expected to benefit 16 million Malaysian adults.
Meanwhile, registrations for SKPS are also increasing.
As of September 28, a total of 6,409 companies nationwide with 14,527 vehicles have registered since the system opened on 15 September. In Sabah, 357 companies with 601 vehicles are already registered, while in Sarawak, there are 146 companies with 356 vehicles.
Speaking at the SKPS Open Day for Sabah at SICC on Monday, the second such event after Putrajaya, Armizan said the programme provides opportunities for public transport operators and goods carriers to directly register at counters provided by KPDN, in addition to asking questions about the scheme.
“We want to open the widest possible space for the 21 categories of eligible companies to register immediately so they can benefit from the RM2.50 per litre subsidy offered by the government through SKPS. For those unfamiliar with online registration, assistance is also available at all KPDN offices nationwide,” he said.
Armizan also revealed that the MOF has agreed to consider the inclusion of public water transport operators in Sabah and Sarawak, such as passenger boats serving rural and island communities.
He said discussions are ongoing with state agencies such as the Sabah Ports and Harbours Department and Sarawak Rivers Board to obtain licensing data on boat operators so that they, too, can benefit from the RON95 subsidy.
“We do not want them to be left out. For those not yet registered when the programme begins tomorrow, we are allowing them to keep valid receipts and later claim reimbursements. But ultimately, registration is essential so that from the start they can enjoy the subsidy rate of RM1.99 for individuals and RM2.05 for companies,” he added.
