The government’s new targeted fuel subsidy, BUDI MADANI RON95 (BUDI95), is proving to be a success among Malaysians.
Since its introduction, Transport Minister Anthony Loke Siew Fook revealed that more than 350,000 Malaysians have renewed their driving licences, marking a 38% increase in daily transactions at the Road Transport Department (JPJ).
Photo via Focus Malaysia
At the Ministry of Finance’s monthly meeting held on 15 October, Prime Minister Datuk Seri Anwar Ibrahim highlighted that the policy reflects the government’s focus on fairness and accountability in subsidy distribution. Instead of providing blanket subsidies that benefit everyone, including those who can easily afford market prices, the government aims to ensure that financial aid reaches the right groups.
To set an example, Anwar shared that although he qualifies for the subsidy, he chooses to pay the full price of RM2.60 per litre for RON95 instead of the subsidised rate of RM1.99 per litre. He said this decision mirrors the spirit of social justice and responsible fiscal management.
The Prime Minister also noted that similar reforms in the past, such as the withdrawal of chicken subsidies, which saved the government RM1 billion annually without increasing market prices… demonstrate that rationalising subsidies can be both effective and sustainable.
Ultimately, Anwar emphasised that the goal is to protect lower-income groups while maintaining the country’s financial integrity.
Who’s Eligible for BUDI95?
Malaysians who hold a valid MyKad and driving licence qualify for the BUDI MADANI RON95 subsidy, which allows them to purchase RON95 petrol at RM1.99 per litre.
