Latest news with #MyKad-based
Malaysiakini
20-05-2025
- Business
- Malaysiakini
Is linking MyKad to fuel subsidies helping Malaysians?
LETTER | In the second half of 2025, the government plans to rationalise RON95 petrol subsidies by moving to a targeted two-tier pricing system. Malaysians will have to swipe their MyKad at the pump to verify their eligibility for subsidised RON95 fuel, while those who are not eligible will pay the higher market price. This plan aims to save costs for spending on brackets that don't require much help. As Prime Minister Anwar Ibrahim emphasised, only the wealthiest 10-15 percent of Malaysians (the T20 income group) are expected to pay market rates under the new system, with '85 percent of the rakyat' enjoying subsidised petrol. Yet, many Malaysians recall that fuel price hikes, even targeted ones, are politically explosive. This is especially true during these uncertain global economic conditions, with huge trade tensions and tariff wars; a delay is helpful, as it is the wrong time to roll back subsidies. Consumer groups also worry about knock-on effects on food and transport costs. The government also argues that nearly 40 percent of subsidised petrol is being misused by non-citizens, commercial vehicles and smugglers, and that this reform should be implemented immediately. By eliminating this misuse, Malaysia could save up to RM8 billion a year, therefore, funds could instead go toward schools, hospitals or vital infrastructure (federal government expenditure, 2024). The government has been test-running MyKad-based aid distribution in other domains. Under Sumbangan Asas Rahmah (Sara) scheme, some 700,000 low-income Malaysians have been using MyKad to buy essential goods at over 3,500 shops, and this is now being expanded to 5.4 million recipients nationwide. If millions can use MyKad for groceries, why not for petrol? Promise: Targeting benefits and fiscal gains If implemented well, the MyKad-based targeted subsidy is crucial for fairness and efficiency. For now, the wealthy urban SUV owners enjoy the same cheap RON95 as those who are struggling, which makes this broad subsidy both inequitable and wasteful. According to Investment, Trade and Industry Minister Tengku Zafrul Tengku Abdul Aziz (2022), for every RM1 of fuel subsidy, 53 sen benefits the T20 (top 20 percent income group) while only 15 sen reaches the B40 (bottom 40 percent). Therefore, a MyKad system can help redirect the benefits to those who really need it (eg to lower and middle-income Malaysians). Secondly, fuel subsidies comprise a large proportion of the national budget, which worsens the deficit and forces trade-offs in other fiscal spending. Finance Minister II Amir Hamzah Azizan expected that rationalising RON95 subsidies could save between RM7.2 billion and RM7.5 billion per year (Finance Ministry, 2025). Consequently, the money can reduce the deficit or be reinvested into infrastructure, public transport, or social programmes. Moreover, by leveraging the national ID database (and the government's new central database hub, Padu), subsidy distribution can be tied to a broader social welfare system for a more holistic social safety net. Pitfalls: Data, privacy, and inclusion Tying fuel purchases to personal IDs means a vast amount of sensitive information will be collected. With that in mind, some might worry that it could pose data security risks like identity theft or misuse of information. It was also pointed out in a Penang Institute (2024) policy paper that 'security deficiencies in the public sector' could lead to potential misuse of personal data for political gain. If the government were to implement this, it must ensure robust cybersecurity safeguards with end-to-end encryption of MyKad transactions and compliance with personal data protection laws. Moreover, no system should collect more data than necessary. Another pitfall lies in the accuracy and administration of the eligibility data. How will the system decide who deserves subsidised fuel? If it's based on income or some 'high-income earner' list, there is a possible risk that inaccurate information on MyKad in databases could wrongly exclude people. Thus, the government must establish a clear, accessible mechanism for citizens to check and appeal their subsidy status, as many are already calling for. Transparency is crucial to prevent eligible Malaysians from being unfairly cut off due to bureaucratic error. Ultimately, the government has to be actively open to public feedback, be transparent about the plan's rollout, and have the humility to refine the approach as needed. If the government can deliver a system that is secure, fair and user-friendly, it will not only achieve its immediate budget goals, but more importantly, win public confidence in the power of innovative policy solutions. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
Malay Mail
20-05-2025
- Business
- Malay Mail
Is linking MyKad to fuel subsidies helping Malaysians? — Yap Wen Min
May 20 — In the second half of 2025, the government plans to rationalise RON95 petrol subsidies by moving to a targeted two-tier pricing system. Malaysian citizens will have to swipe their MyKad (national ID card) at the pump to verify their eligibility for subsidised RON95 fuel, while those who are not eligible will pay the higher market price. This plan aims to reduce spending on groups that do not require much assistance. As Prime Minister Anwar Ibrahim emphasised, only the wealthiest 10–15 per cent of Malaysians (the T20 income group) are expected to pay market rates under the new system, with '85 per cent of the rakyat' enjoying subsidised petrol. Yet, many Malaysians recall that fuel price hikes, even targeted ones, are politically sensitive. Especially during uncertain global economic conditions marked by trade tensions and tariff wars, a delay is seen as helpful, with some saying it is the wrong time to roll back subsidies. Consumer groups also worry about knock-on effects on food and transport costs. The government, however, argues that nearly 40 per cent of subsidised petrol is being misused by non-citizens, commercial vehicles and smugglers, making immediate reform necessary. By eliminating this misuse, Malaysia could save up to RM8 billion a year, which could instead be allocated to schools, hospitals or vital infrastructure (Federal Government Expenditure, 2024). The government has been test-running MyKad-based aid distribution in other domains. Under the Sumbangan Asas Rahmah (SARA) scheme, around 700,000 low-income Malaysians have been using MyKad to buy essential goods at over 3,500 shops, and this is now being expanded to 5.4 million recipients nationwide. If millions can use MyKad for groceries, why not for petrol? Linking fuel purchases to personal IDs means vast amounts of sensitive information will be collected. — Picture by Sayuti Zainudin Promise: Targeting benefits and fiscal gains If implemented well, a MyKad-based targeted subsidy system is crucial for fairness and efficiency. Currently, wealthy urban SUV owners enjoy the same cheap RON95 as those who are struggling, making this broad subsidy inequitable and wasteful. According to Tengku Zafrul Tengku Abdul Aziz (2022), for every RM1 of fuel subsidy, 53 sen benefits the T20 (top 20 per cent income group) while only 15 sen reaches the B40 (bottom 40 per cent). A MyKad system could help redirect the benefits to those needing them, such as lower- and middle-income Malaysians. Secondly, fuel subsidies comprise a large proportion of the national budget, worsening the deficit and forcing trade-offs in other fiscal spending. Finance Minister II Amir Hamzah Azizan estimated that rationalising RON95 subsidies could save between RM7.2 billion and RM7.5 billion per year (Ministry of Finance Malaysia, 2025). These savings could reduce the deficit or be reinvested into infrastructure, public transport, or social programmes. Moreover, by leveraging the national ID database (and the government's new central database hub, PADU), subsidy distribution could tie into a broader social welfare system for a more holistic safety net. Pitfalls: Data, privacy and inclusion Linking fuel purchases to personal IDs means vast amounts of sensitive information will be collected. With that in mind, concerns about data security risks, such as identity theft or misuse, are valid. A policy paper by the Penang Institute (2024) highlighted 'security deficiencies in the public sector' and the potential misuse of personal data for political gain. The government must ensure robust cybersecurity safeguards, including end-to-end encryption for MyKad transactions and compliance with personal data protection laws. Moreover, no system should collect more data than necessary. Another challenge lies in the accuracy and administration of eligibility data. How will the system decide who deserves subsidised fuel? If it is based on income or a 'high-income earner' list, there is a risk that inaccurate MyKad database information could unfairly exclude people. The government must establish a clear, accessible mechanism for citizens to check and appeal their subsidy status, as many are already calling for. Transparency is crucial to prevent eligible Malaysians from being cut off due to bureaucratic error. Ultimately, the government must remain open to public feedback, be transparent about the plan's rollout, and refine the approach as needed. A secure, fair, and user-friendly system could not only achieve immediate budget goals but also win public confidence in innovative policy solutions. *Yap Wen Min is a policy analyst at HEYA Inc., a non-profit think tank and people's academy. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Malay Mail
01-05-2025
- Business
- Malay Mail
Sumbangan Asas Rahmah recipients can now buy cleaning items as programme expands, over 3.9 million begin spending
KUALA LUMPUR, May 1 — The list of eligible items that can be purchased under the Sumbangan Asas Rahmah (SARA) programme has been expanded starting today, the Finance Ministry (MOF) announced. It said the Madani Government has decided to expand the categories of goods for SARA purchases to include household cleaning products such as detergent or washing powder for clothes, dishes and floors, due to the widespread demand from the recipients, hence bringing the categories of goods registered under SARA programme to 14. Other goods previously allowed to be purchased using SARA aid include various basic food items, personal hygiene, medicines and school supplies. 'The Madani Government always listens to the people to ensure their wellbeing continues to be safeguarded. The expansion of the categories of goods allowed to be purchased under SARA is the result of feedback received from the majority of recipients, and the government is acting swiftly to implement it. 'Insya-Allah, the Madani Government will continue to improve the implementation of SARA from time to time,' Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, was quoted as saying in the statement. Meanwhile, the MOF revealed that more than 3.9 million SARA recipients have begun using their MyKad to purchase essential items from registered retailers throughout April. 'The response has been very encouraging, with 72 per cent of the total 5.4 million SARA recipients having started using their MyKad for purchases within the first month of credit disbursement. The number of SARA aid recipients was also increased significantly from 700,000 to 5.4 million beginning in April,' the statement read. At the same time, the number of participating retail stores and supermarkets under the SARA programme has surged to over 3,700 nationwide, compared to just 700 last year, and the number is expected to grow further to ensure recipients have convenient access to nearby SARA-registered outlets. The ministry also said that, so far, the highest MyKad-based SARA purchases were recorded in Sabah (84 per cent), followed by Perlis (82 per cent), Kedah (80 per cent), Labuan (79 per cent) and Kelantan (78 per cent). The maximum SARA credit per recipient this year has increased by 75 per cent from RM1,200 last year to up to RM2,100 and recipients can use their SARA credits throughout the year, with any unused monthly balance carried forward until December 31. — Bernama
The Sun
01-05-2025
- Business
- The Sun
Govt expands categories of goods for SARA purchases
KUALA LUMPUR: The list of eligible items that can be purchased under the Sumbangan Asas Rahmah (SARA) programme has been expanded starting today, the Finance Ministry (MOF) announced. It said the MADANI Government has decided to expand the categories of goods for SARA purchases to include household cleaning products such as detergent or washing powder for clothes, dishes and floors, due to the widespread demand from the recipients, hence bringing the categories of goods registered under SARA programme to 14. Other goods previously allowed to be purchased using SARA aid include various basic food items, personal hygiene, medicines and school supplies. 'The MADANI Government always listens to the people to ensure their wellbeing continues to be safeguarded. The expansion of the categories of goods allowed to be purchased under SARA is the result of feedback received from the majority of recipients, and the government is acting swiftly to implement it. 'Insya-Allah, the MADANI Government will continue to improve the implementation of SARA from time to time,' Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, was quoted as saying in the statement. Meanwhile, the MOF revealed that more than 3.9 million SARA recipients have begun using their MyKad to purchase essential items from registered retailers throughout April. 'The response has been very encouraging, with 72 per cent of the total 5.4 million SARA recipients having started using their MyKad for purchases within the first month of credit disbursement. The number of SARA aid recipients was also increased significantly from 700,000 to 5.4 million beginning in April,' the statement read. At the same time, the number of participating retail stores and supermarkets under the SARA programme has surged to over 3,700 nationwide, compared to just 700 last year, and the number is expected to grow further to ensure recipients have convenient access to nearby SARA-registered outlets. The ministry also said that, so far, the highest MyKad-based SARA purchases were recorded in Sabah (84 percent), followed by Perlis (82 per cent), Kedah (80 per cent), Labuan (79 per cent) and Kelantan (78 per cent). The maximum SARA credit per recipient this year has increased by 75 per cent from RM1,200 last year to up to RM2,100 and recipients can use their SARA credits throughout the year, with any unused monthly balance carried forward until Dec 31.
