A two-tier subsidy system is expected to be introduced in June 2025, and Datuk Seri Amir Hamzah, Minister of Finance II, said that the citizen identity card is expected to be introduced to ensure that the RON95 petrol subsidy is only used by the rightful beneficiaries.
He did not provide any further details on the subsidy system to be introduced, but said that for now, the system is being refined and details about it will be revealed closer to its launch.
The probability is that the citizen identity card will be aligned with the PADU system which was previously reported to have been tested for almost two years.
This two-tier subsidy system will show the subsidized price for RON95 petrol, and the price will be according to the market value, similar to RON97 and RON100. He also said that about 85 percent of Malaysians will be able to enjoy this petrol subsidy, and this is what the government means by targeted subsidies for petrol.
The use of identity cards as a means of distributing subsidies and money is not new, where the Basic Rahmah Contribution (Sara) program uses identity cards as a means of distributing financial assistance to those in need.