News & Reviews:   subsidy

Ever since Budi Madani RON95 (BUDI95) was introduced on 30 September 2025, Malaysia’s government has reported significant early savings from its targeted fuel subsidy scheme. According to Prime Minister Datuk Seri Anwar Ibrahim, an estimated RM800 million has been saved since the programme was rolled out.

Today, Malaysia’s Ministry of Finance (MoF) has announced that a tiered eligibility system under the BUDI MADANI RON95 (BUDI95) petrol subsidy programme will be activated in the middle of each month. Introducing a more tailored fuel support mechanism for e-hailing drivers based on their monthly travel distances, the scheme aims to create a fairer and more inclusive distribution of subsidised petrol while safeguarding the livelihoods of drivers who rely on fuel for their daily operations.

Since 30 September 2025, many Malaysians have utilised the BUDI95 programme. However, this also created a new problem: Malaysians residing in Singapore are effectively locked out. With this, the Malaysian government will create a new pathway to allow citizens holding Singapore driving licences to access the BUDI95 fuel subsidy.

Setel, in collaboration with the Malaysian government and Petronas, has announced full integration of the BUDI MADANI RON95 subsidy program directly into its app, making it easier for Malaysians to enjoy subsidised fuel without the hassle of presenting their MyKad at every refuel.

Malaysia’s targeted RON95 petrol subsidy rationalisation is set to begin in the second half of 2025, using a MyKad-based verification system to ensure only eligible individuals receive subsidised fuel.

Prime Minister Datuk Seri Anwar Ibrahim today tabled Budget 2025 in Parliament, which included some interesting announcements. These include the implementation of targeted subsidy for RON95 fuel beginning the middle of next year.

Transport Minister Anthony Loke Siew Fook has announced that the government has agreed to subsidise the purchase of economy flight tickets from Peninsula Malaysia to Sabah, Sarawak and Labuan during festive seasons. Prices will be capped at RM599 for a one-way trip, starting with the Christmas period later this month.

The Malaysian Government may introduce a new incentive specific for the B40 group in the country to purchase electric vehicles (EVs) in Budget 2024. Such an incentive was touted by the Ministry of Investment, Trade and Industry (MITI), but will only apply to purchases of e-motorcycles.

Today, the Selangor State Government just announced a new Selangor Internet Data programme. As part of the Kita Selangor 2.0 Package, this initiative's mission is to offer unlimited SIM card subsidies and internet facilities to 70,000 people in the B40 group category.