BUDI MADANI A Success in Targeted Subsidies, Curbing Leakages - Amir Hamzah

KUALA LUMPUR, Oct 29 (Bernama) -- The BUDI MADANI programme has been described as one of the country's successes in implementing targeted subsidies that not only help ease the people's cost-of-living burden but also curb fuel subsidy leakages.

Finance Minister II Datuk Seri Amir Hamzah Azizan said that under the BUDI MADANI RON95 (BUDI95) programme, eligible Malaysians can purchase RON95 petrol at RM1.99 per litre compared with the unsubsidised price of RM4.42 per litre, with a monthly quota of up to 300 litres.

He said Malaysians could also enjoy subsidised diesel at RM2.10 per litre compared with the unsubsidised price of RM5.27 per litre, with a monthly quota of up to 400 litres.

"BUDI MADANI is one of the country's successes. This is one of the methods we have introduced to reduce the people's cost-of-living burden, while increasing their disposable income.

"For example, motorists who use 100 litres of RON95 petrol a month can enjoy savings, while those who use the full 300-litre quota will benefit from even greater savings,” he said. 

He said this when winding up the debate on the Supply Bill 2027 (Budget 2027) at the policy stage for his ministry in the Dewan Rakyat today.

Meanwhile, Amir Hamzah said using MyKad as a verification mechanism for eligibility to purchase subsidised petrol had helped curb leakages, particularly purchases by foreign nationals who are not eligible for the subsidy.

He said the savings generated by efforts to reduce leakages could be channelled back into improving assistance for the people and strengthening the country's fiscal position.

He said the government had also taken action against those involved in subsidy misappropriation, including a recent case in Nibong Tebal.

Commenting on a proposal to exclude the top 20 per cent (T20) income group from receiving RON95 subsidy, Amir Hamzah said the matter needed deeper consideration, as the government did not want to place additional pressure on the people.

"For now, our efforts are to reduce the people's burden and not put them under further pressure. The issue is to ensure we curb the leakages that are occurring. That is where we can achieve the savings we want,” he added.

-- BERNAMA