The government is exploring new mechanisms to distribute targeted subsidies using the MyKasih system alongside the MyKad, including for diesel, as part of ongoing efforts to improve subsidy delivery. In a statement yesterday, Communications Minister Fahmi Fadzil said the proposal is currently being refined by the Ministry of Finance before it is presented to the Cabinet for final approval.
According to Fahmi, the matter was discussed during a recent Cabinet meeting as part of follow-up measures from the National Economic Action Council. The proposal builds on an earlier announcement by Finance Minister II Amir Hamzah Azizan, who suggested leveraging both MyKasih and MyKad to strengthen targeted subsidy distribution.
In an interview with Berita Harian, Amir Hamzah previously noted the government’s consideration of expanding MyKad usage for diesel subsidies, following its implementation under the BUDI95 programme for RON95 petrol. He said the approach has helped create a more structured system, reducing leakages while delivering cost savings without significantly altering consumer purchasing behaviour.
The Finance Minister II added that the success of MyKad-based subsidy delivery in both urban and rural areas indicates potential for broader use, including diesel. However, he stressed that any transition would require a thorough evaluation of logistics, usability, and system readiness nationwide.
Diesel subsidy implementation presents additional challenges, particularly due to differing usage patterns across regions. In Sabah and Sarawak, diesel plays a more critical role, supporting land and water transport as well as electricity generation. Some areas also lack access to conventional petrol stations, relying instead on alternative distribution methods.
Amir Hamzah cautioned that the government must ensure supply continuity before introducing any new mechanism. He noted that more time is needed to fully assess potential obstacles and avoid disruptions, especially in regions with unique infrastructure and fuel distribution needs.
(Source: Bernama / Berita Harian)
