March 28, 2025
KUALA LUMPUR – A two-tier system involving the use of MyKad is likely to be adopted when the targeted RON95 subsidy is implemented this June, says Datuk Seri Amir Hamzah Azizan.
While the Finance Minister II did not want to divulge details about the mechanism, he hinted that the MyKad may be used by those eligible for the targeted RON95 subsidy.
“The mechanism is being fine-tuned, and we do not want to make any announcement while work is still being done.
“More importantly, we want to make sure that the system is robust,” he told reporters at the launch of the new open payment system for the Rapid KL On-Demand yesterday.
Last month, in a Dewan Rakyat written reply, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the government is now in the final phase of drafting a fair and effective targeting system to ensure its implementation achieves the set objectives.
According to Armizan, his ministry is identifying the target groups through discussions with the Finance and Transport Ministries.
Meanwhile, Amir Hamzah said that a two-tier pricing system involving a subsidised price for RON95 and a non-subsidised price would be used.
“About 85% of the rakyat will get the subsidised petrol prices and this is what is meant by targeted subsidy for the nation,” he added.
He also said the use of the MyKad, currently being used by Sumbangan Asas Rahmah (Sara) recipients, would be involved.
“Some 700,000 recipients of the aid are already using their MyKad to purchase sundry goods at some 3,500 shops and supermarkets in the country.
“Come next week, the number of Sara recipients using their MyKad will increase to 5.4 million.
“If 5.4 million recipients can use their MyKad at more than 3,500 shops and supermarkets, what is the difference if MyKad is used for RON95?” he said.
On Wednesday, the Finance Ministry said that 5.4 million Sara recipients will receive aid via MyKad beginning April 1, a significant increase from the current number of 700,000 beneficiaries.
The expansion is part of the increased allocation for the Sumbangan Tunai Rahmah and Sara programmes, which amount to RM13bil this year – the highest in the nation’s history for cash aid distribution.
Under the Sara programme, recipients can use their MyKad to purchase selected essential goods at over 3,500 registered retail stores nationwide – a substantial increase from the 700 stores available in 2024.
Sara credits can be used to buy basic food items, personal hygiene products, medicines, and school supplies.