873) ECONOMISTS: BUDI95 PROGRAMME AN EFFECTIVE, PRACTICAL APPROACH TO HELP NETIZENS, CURB LEAKAGES - NEW STRAITS TIMES - 28/09/2025
KUALA LUMPUR: The implementation of targeted subsidies under the Budi Madani RON95 (BUDI95) programme has been described as an effective government measure to ensure continued public assistance while curbing leakages and strengthening the nation's fiscal position.
Universiti Kebangsaan Malaysia (UKM) Associate Professor of Entrepreneurship Dr Abdul Rahman Jaaffar said that although every subsidy scheme carries the risk of abuse, the government had opted for the most practical approach by prioritising public convenience.
"In terms of household income, various issues will arise, including disposable household income. The verification process during purchases also deserves attention," he told Berita Harian.
"However, when viewed in its entirety, targeted subsidies remain the best option for the people and the country," Abdul Rahman added.
He said one of the main challenges is the risk of foreigners misusing MyKad to obtain subsidised petrol, in addition to rampant smuggling activities in border areas.
He said these issues must be urgently addressed through stricter enforcement measures.
"This step is expected to reduce petrol smuggling that has been rampant along the borders. The savings are estimated at between RM5 billion and RM7 billion annually, which would contribute to fiscal recovery," he said.
He also suggested that the Domestic Trade and Cost of Living Ministry (KPDN) and enforcement agencies step up patrols and monitoring to ensure the scheme's effectiveness.
Meanwhile, the Petroleum Dealers Association of Malaysia (PDAM) expects BUDI95 to receive an overwhelming response, with up to six million users projected to refuel within the first week of its implementation, compared with the usual daily average of three to four million users.
Its president, Datuk Khairul Annuar Abdul Aziz, said the figure was based on initial observations of public reception, which reflected strong confidence in the government initiative.
"As preparation, petrol station operators are advised to hire more part-time workers to ease congestion during the early weeks of the rollout," he said.
"On Sept 27, a trial run was conducted for police and military personnel, who enjoyed the subsidised rate three days earlier, using the new verification system integrated into existing pumps," Khairul added.
He also reminded operators and staff to provide accurate information to consumers and stressed that inquiries on eligibility and subsidy limits should be directed to the BUDI95 helpline at 1-300-88-9595, not to the stations.
The Malaysian Muslim Consumers Association (PPIM) also welcomed the implementation of Budi95 but urged the government to act firmly against recurring leakages of subsidised petrol at the borders.
Its chief activist Datuk Nadzim Johan said the public should not remain silent but instead serve as the "eyes and ears" of the authorities by reporting smuggling activities.
"Smugglers exploit the price differences between Malaysia and neighbouring countries to reap huge profits. This not only causes losses to the nation but also disrupts supply for eligible consumers," he said.
"When the market price is no longer broadly subsidised, the price gap will narrow and smuggling will no longer be profitable. This weakens the black market," Nadzim added.
PPIM is confident that with cooperation from all parties, subsidies can be channelled directly to those in need while creating a fairer and more sustainable fuel market.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, however, reminded that leakages remain a risk if monitoring is not enhanced.
"If wastage occurs, the government will still have to spend while the aid does not reach the target group," he said.
"This will restrict the government's ability to deliver effective assistance as resources are limited," Mohd Afzanizam added.
Since the BUDI95 portal was launched on Sept 25, more than 8.1 million users have checked their eligibility for the RON95 subsidy.
Article by: New Straits Times
ECONOMISTS: BUDI95 PROGRAMME AN EFFECTIVE, PRACTICAL APPROACH TO HELP NETIZENS, CURB LEAKAGES
