The Malaysian government is intensively preparing a new policy aimed at making it more convenient for citizens to purchase subsidized RON95 gasoline through identity cards, electronic wallets, or transfer cards. This innovative measure is expected to be officially implemented next year, marking Malaysia'sEnergy subsidiesAnother major policy adjustment.

In the 2025 financial budget submitted to the Congress by Malaysian Prime Minister and Minister of Finance Anhua, the government has disclosed its plan to adjust the RON95 gasoline subsidy mechanism in the middle of next year. This adjustment aims to more effectively manage subsidy resources, ensure that those who truly need subsidies can benefit, and reduce the loss and abuse of subsidies.

According to the government's initial plan, the new subsidy mechanism will use ID cards, electronic wallets, or transfer cards as means of identity verification and payment. This means that in the future, when citizens purchase subsidized RON95 gasoline, they may need to present their ID card to prove their identity and qualifications, or make payments through electronic wallets or transfer cards to ensure that subsidies can be accurately distributed to eligible individuals.

The new subsidy policy will implement differentiated treatment. Foreigners and the richest 15% population in Malaysia will not be able to enjoy the subsidy policy of RON95 gasoline, while the remaining 85% of the citizens will not be affected and can continue to purchase RON95 gasoline at the subsidized price. This policy adjustment aims to reduce the government's financial burden while ensuring that subsidies can benefit the general public more fairly.

Malaysia's Minister of Transport, Lu Zhaofu, stated that the government is actively exploring how to implement this new policy more effectively and considering requiring citizens to present their ID cards when purchasing subsidized gasoline in the future. This measure will help prevent the abuse and loss of subsidies, ensuring that subsidies can truly be used to meet the basic needs of the people.

Malaysiatreasury departmentSecretary General Zohan also revealed that the government is constantly improving the details of the new subsidy mechanism to ensure its smooth implementation. He stated that the new subsidy mechanism may be similar to the current diesel targeted subsidies, both of which aim to reduce loopholes by restoring the free floating of oil prices. Zuo Han pointed out that after implementing targeted subsidies for diesel, the government has successfully reduced the problem of diesel smuggling and abuse. Diesel sales at gas stations have decreased by 30%, while commercial diesel sales have increased. This proves the effectiveness of the new subsidy mechanism in addressing smuggling and abuse issues.

In addition, Malaysian Economy Minister Rafez also stated that the government is preparing to adopt a dual oil price approach to ensure that the wealthiest 15% of the country's population purchases RON95 gasoline at market prices, while 85% of the population continues to purchase it at subsidized prices. This policy adjustment is expected to save the government approximately RM8 billion in fiscal expenditure annually.