How will MyKad be used for RON95 subsidy targeting?

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MyKad May Be Utilised for Targeted RON95 Fuel Subsidies

The MyKad system, Malaysia's national identification card, is being considered as a potential mechanism for the targeted RON95 fuel subsidy programme. This approach draws parallels with the existing Sumbangan Asas Rahmah (SARA) programme, which already leverages MyKad for distributing aid. The government aims to implement a robust system that ensures over 85 per cent of the population benefits from subsidised pricing.
Integration with SARA Programme

The proposed use of MyKad for RON95 subsidy targeting is modelled after the current SARA programme. This welfare initiative already enables recipients to purchase essential goods using their MyKad at participating retail outlets. The established infrastructure and user familiarity within the SARA framework suggest a viable pathway for its adaptation to fuel subsidies.
Scalability Demonstrated by SARA

The SARA programme provides a strong precedent for the potential scalability of MyKad integration. Currently, 700,000 individuals receive monthly assistance through SARA, utilising their MyKad to make purchases. This number is set to expand significantly to 5.4 million recipients in the near future, all of whom will be using their MyKad.
Extensive Retail Network for MyKad

The existing network of over 3,500 retail stores and supermarkets that support the SARA programme through the MyKad system indicates a broad base for implementation. Given this extensive reach, officials suggest that extending MyKad functionality to the RON95 subsidy, which would serve a large segment of the population, should be a manageable transition. The government is focused on ensuring the overall robustness of the subsidy system before its official announcement, expected after the first half of the year.

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How will MyKad be used for RON95 subsidy targeting?

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