KOTA KINABALU, JUNE 23 — Targeting diesel subsidies under BUDI MADANI using MyKad is seen to be able to reduce leakage by up to 1 billion litres per year, thus helping to save on subsidy expenses and ensuring the stability of fuel supply in the country.
Finance Minister II Datuk Seri Amir Hamzah Azizan said that subsidy leakage previously occurred mostly in the diesel sector because the use of verification via MyKad was not implemented widely like with RON95 petrol.
He said the use of MyKad allows only eligible citizens to enjoy subsidies while non-citizens have to buy fuel at the set market price.
“Our estimate is that we can reduce leakage by 1 billion litres of diesel per year. This will not only reduce undue subsidy payments but also help ensure the stability of supply in the country,” he said at a press conference after the Media Briefing on the Implementation of the Diesel Subsidy Targeting Reform here today.
Also present was Deputy Chief Minister II Datuk Seri Masidi Manjun, who is also Sabah’s Finance Minister.
Amir Hamzah said the implementation of the diesel subsidy would use the same approach as the targeted subsidy mechanism for RON95 which is implemented throughout the country including Sabah and Sarawak.
Commenting on the registration process, he explained that citizens who are eligible to receive basic subsidies do not need to register because eligibility will be identified automatically through the existing system.
However, individuals who require an additional quota of 100 litres per month under the BUDI Diesel programme must apply through the portal provided or seek assistance at the Inland Revenue Board (IRB) office.
“For the additional quota of 100 litres, they need to apply. IRB officers will assist in the registration process to obtain the additional qualification,” he said.
He said the government was confident that the use of MyKad would not cause problems, especially in rural and interior areas, since a similar mechanism had been widely used through the Basic Rahmah Contribution (SARA) programme.
Amir Hamzah said that in Sabah alone, there are approximately 1,493 premises involved in the implementation of SARA, including in rural areas, with the utilization rate of beneficiaries reaching almost 100 percent.
He said that the experience of implementing SARA proved that the use of MyKad as a medium for verification and redemption of assistance was well accepted by the people, including in Sabah and Sarawak.
He said the government would continue to seek feedback from various parties to ensure that the implementation of the targeted diesel subsidy runs smoothly and achieves the main goal without affecting those who are eligible to receive assistance.
— BERNAMA
