How will MyKad linking curb diesel subsidy abuse in Sabah?

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MyKad System to Target Diesel Subsidy Abuse in Sabah

The implementation of a new MyKad-based targeted diesel subsidy system is set to significantly curb abuse and smuggling within the subsidised fuel supply chain in Sabah. This mechanism, effective from July 1, will directly link eligible Malaysian citizens to subsidised diesel purchases through their MyKad identity. This approach aims to prevent the open purchase of subsidised fuel that was characteristic of the previous system, thereby reducing leakages and illicit activities.
Enhanced Identity Verification for Subsidy Access

Previously, the subsidy system lacked comprehensive identity verification, allowing for the open purchase of subsidised diesel. This created significant opportunities for leakages and abuse within the supply chain. The new system addresses this by making MyKad the primary identifier, ensuring that only eligible Malaysian citizens can access fuel at subsidised rates. Non-citizens will be required to purchase diesel at market prices under this revised framework.
Projected Reduction in Diesel Leakages

Finance Minister II Datuk Seri Amir Hamzah Azizan has projected that this new mechanism could reduce diesel leakages by as much as one billion litres annually. This reduction is anticipated to not only alleviate the government's subsidy burden but also contribute to a more stable domestic diesel supply. The issue of diesel leakages has been particularly pronounced in Sabah, partly due to the high demand for four-wheel-drive vehicles commonly used for extensive travel within the state.
Quota System and Additional Support for Sabah Consumers

Under the new regime, eligible individuals will receive a basic monthly quota of 200 litres for subsidised fuel, encompassing both RON95 petrol and diesel. Government data indicates that approximately 90 per cent of motorists in Malaysia consume less than this amount monthly, suggesting the quota will suffice for the majority of users. Consumers in Sabah, Sarawak, and Labuan who own vehicles like pickup trucks and four-wheel-drive vehicles will benefit from an additional 100 litres per month, bringing their total quota to 300 litres. This adjustment acknowledges the specific consumption patterns in these regions, with an estimated 95 per cent of diesel users consuming less than 300 litres monthly. The government is also developing a specific mechanism to provide continued assistance to other groups reliant on diesel for their livelihoods, such as river boat operators and users of generator sets in rural areas.

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How will MyKad linking curb diesel subsidy abuse in Sabah?

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