The Malaysian government is set to begin the rationalisation of RON95 fuel subsidies in the second half of 2025, according to Second Finance Minister Datuk Seri Amir Hamzah Azizan, Bernama reported.
While reaffirming the government’s commitment to subsidy reforms, Amir Hamzah clarified that current efforts are concentrated on accurately identifying the groups eligible to receive targeted assistance. He explained that the Ministry of Finance (MoF) is actively working on refining the criteria to ensure that support is directed at those who need it most.
He stated that discussions are ongoing between Prime Minister Datuk Seri Anwar Ibrahim and the Cabinet to determine the appropriate eligibility threshold, which is expected to be revised to better reflect current socioeconomic conditions.
Amir Hamzah, who was speaking after launching the Malaysian Institute of Accountants (MIA) International Accountants Conference 2025, said that the use of MyKad is under serious consideration as a mechanism for implementing the targeted subsidy. He noted that the identity card had already proven effective under the Sumbangan Asas Rahmah (SARA) scheme and could be adapted for future use in the fuel subsidy system. The Ministry is currently working on tightening the system to ensure its efficiency and integrity once applied to RON95 subsidies.
