Why is the Madani Government enhancing the targeted diesel subsidy programme?

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Enhancements to Targeted Diesel Subsidy Programme Aim to Improve Eligibility and Close Loopholes

The Madani Government is enhancing the targeted Budi Madani Diesel (Budi Diesel) subsidy programme to ensure that diesel subsidies effectively reach eligible Malaysians and to address existing loopholes. These improvements follow extensive engagement with the public, small traders, and stakeholders, leading to the introduction of several key adjustments ahead of the programme's early access phase. The goal is to streamline the subsidy system and prevent financial losses estimated to be in the billions annually due to inefficiencies.
Introduction of Temporary Incentive for Vehicle Ownership Transfer Fees

A significant enhancement is the implementation of a three-month temporary incentive programme, effective from July 1, which exempts Vehicle Ownership Transfer (THM) fees for diesel vehicles. This measure acknowledges that the Budi Diesel programme relies on vehicle ownership data and active road tax records for eligibility. The fee exemption provides a crucial window for vehicle owners and actual users to update their ownership information, ensuring alignment between registered details and current usage, thereby facilitating smoother subsidy allocation.
Allowing Transfer of Subsidy Eligibility to Actual Users

The programme now permits registered owners of diesel vehicles to transfer their subsidy eligibility to immediate family members who are the actual users of the vehicles. This adjustment, subject to specific conditions and verification processes that will be further detailed, aims to ensure that the subsidy benefits are received by those who genuinely operate the vehicles for their daily needs. The Road Transport Department (JPJ) will also be opening service counters on weekends throughout July to assist with BUDI Diesel application matters.
Expansion to Cover Company-Owned Pick-up Trucks and Jeeps

In response to feedback from small traders and individuals who depend on these vehicles for their livelihoods, the Cabinet has agreed to expand the Budi Diesel programme to include company-owned private pick-up trucks and jeeps. This expansion is intended to provide direct support to a broader base of users who utilise these types of diesel vehicles for small businesses, commuting, and essential activities, particularly in rural and interior areas, subject to the programme's stipulated conditions.

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Why is the Madani Government enhancing the targeted diesel subsidy programme?

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