KUALA LUMPUR: The government is considering the implementation of a two-tier pricing system for RON95 petrol subsidies that would utilize databases linked to identification cards, as well as e-wallets and debit cards.
Datuk Johan Mahmood Merican highlighted the necessity of developing a mechanism that minimizes subsidy leakages.
“The government is committed to ensuring that subsidies continue to benefit Malaysians. The specifics of this system are still being refined, which is why Prime Minister Datuk Seri Anwar Ibrahim indicated that we expect to roll it out around mid-next year,” he explained.
These statements were made during the Post-Budget 2025 Debate held by the Malaysian Economic Association (MEA) on Monday (Oct 21).
MEA president Yeah Kim Leng was in attendance as well.
The discussion was led by Tan Sri Sulaiman Mahbob, chairman of the Malaysian Institute of Economic Research board of trustees, and included panellists such as Tan Sri Noor Azlan Ghazali, director of the Malaysian Inclusive Development and Management Institute, and Firdaos Rosli, chief economist at Ambank Group.
Johan drew comparisons between the RON95 subsidy and the diesel subsidy system, suggesting it may incorporate elements of the fleet card mechanism utilized in the Subsidised Diesel Control System (SKDS).
He underscored that having the pump price reflect the market rate is beneficial as it results in a significant reduction in subsidy leakages.
“We have seen leakages following the introduction of the diesel subsidy mechanism, not only across borders but also affecting industries that should be purchasing at commercial prices.
“Nevertheless, we have documented a 30 percent drop in diesel sold at petrol stations, along with increased sales to commercial businesses, indicating that both issues are being addressed effectively,” he added. – Bernama
