BUDI95 Gets Nod From Consumer Groups With Call For Smarter Subsidy Framework

By Yasmin Ahmad Zukiman

KUALA LUMPUR, Sept 22 (Bernama) -- The government’s decision to set the subsidised price of RON95 petrol at RM1.99 per litre, down from RM2.05 beginning Sept 30 under the BUDI MADANI RON95 (BUDI95) programme, has been seen as a practical measure to help households manage their costs of living.

Consumer associations welcomed the announcement made by Prime Minister Datuk Seri Anwar Ibrahim at the Prime Minister's Department’s monthly gathering today, saying the move will provide direct relief to families, particularly those in the lower-income bracket, while underscoring the MADANI government’s commitment to the people.

Federation of Malaysian Consumers Associations (FOMCA) chief executive officer Dr T. Saravanan said fuel remains a daily necessity for many Malaysians, whether for commuting to work, sending children to school or running small businesses.

“Any reduction in petrol cost translates into meaningful savings which can then be channelled towards food, education and other essential expenses.

“With the cost of living remaining a major concern for ordinary Malaysians, this measure provides immediate and tangible relief,” he told Bernama today.

Saravanan, however, noted that while the subsidy helps cushion consumers from inflationary pressures, it must also balance short-term relief with long-term economic sustainability.

“The quota-based structure, coupled with measures to prevent abuse, will be critical to ensure the subsidy benefits are not wasted.

“In the long run, subsidies should also be part of a wider social safety net that includes stronger public transport, affordable housing and food security initiatives so that support for consumers goes beyond fuel prices alone,” he said.

The Prime Minister’s announcement, among others, stated that all Malaysian citizens with a valid driving licence are eligible for the RON95 subsidy, with data from the Road Transport Department (JPJ) and the National Registration Department (JPN) showing that more than 16 million people qualify.

Meanwhile, chairman of Pertubuhan Mesra Pengguna Malaysia (PMPM) Datuk Seri Haniff Omar said the six-sen reduction in the price of RON95 petrol is a welcome move that demonstrates the government's concern for the people, especially at a time when fuel prices remain high globally.

“Apart from that, the use of digital platforms such as the Setel app can also help minimise potential system disruptions, especially as the digitalisation of the national identity card (MyKad) has not been fully implemented,” he said.

Haniff added that the BUDI95 fuel subsidy initiative, which offers all Malaysians with an active driving licence up to 300 litres of subsidised petrol per month, will not only assist them in managing their fuel consumption, but also help the government reduce overall subsidy spending.

In a separate statement, President of the Muslim Youth Movement of Malaysia (ABIM), Ahmad Fahmi Mohamad Samsudin, lauded the government's announcement as a positive step in curbing longstanding subsidy leakages, which have often benefited large companies and non-citizens.

“Targeted subsidies have the potential to create a positive ripple effect across logistics costs, staple food prices, and public transportation fares.

“As such, ABIM would like to emphasise the need for the government to implement clear mitigation measures, including using subsidy savings to support public transport fares and stabilise the overall cost of living,” he said.

Ahmad Fahmi noted that subsidy leakages extend beyond petrol and also involve blanket subsidies for items such as tolls, rice, sugar, electricity, and cooking oil, some of which are currently enjoyed by ineligible groups, including non-citizens.

To address this, ABIM urged the government to implement comprehensive subsidy reform through smart targeting, including the integration of digital infrastructure and data-sharing between relevant agencies such as the National Registration Department (JPN), Road Transport Department (JPJ), Immigration Department, and others.

“The effectiveness of BUDI95 hinges on the readiness of supporting infrastructure, including MyKad systems, card readers, and digital applications,” Ahmad Fahmi said.

He added that all these systems must be fully operational before enforcement begins.

ABIM also called for a longer pilot period, especially in rural areas where access to digital technology and connectivity may be limited.

-- BERNAMA