Peninsular malaysia: The MADANI Government has announced three enhancements to the implementation of the targeted BUDI MADANI Diesel (BUDI Diesel) subsidy system to facilitate the transition ahead of the programme's early access phase, which begins tomorrow in Peninsular Malaysia.
According to BERNAMA News Agency, the Ministry of Finance (MOF) stated that the enhancements were agreed upon following several engagement sessions with the public, small traders, stakeholders, and implementing agencies after the announcement of the BUDI Diesel implementation on June 22. The enhancements include the implementation of the Temporary Incentive Programme for the Exemption of Vehicle Ownership Transfer (THM) Fees for diesel vehicles for three months starting July 1, enabling subsidy eligibility to be transferred to the actual users of vehicles, and the expansion of BUDI Diesel to cover company-owned private pick-up trucks and jeeps.
The transition aims to ensure diesel subsidies reach eligible Malaysians, while closing loopholes that have cost the country billions of ringgit annually. Finance Minister II Datuk Seri Amir Hamzah Azizan emphasized that the MADANI Government has considered public feedback and appeals to ensure the smooth implementation of BUDI Diesel.
The ministry highlighted that the temporary exemption of fees, which can be as much as RM100, considers the implementation of BUDI Diesel, which uses vehicle ownership data and active road tax records as eligibility criteria. This measure will provide an opportunity for owners and actual users of diesel vehicles to ensure that vehicle ownership information is properly updated and aligned with actual usage.
The Road Transport Department (JPJ) will open service counters on weekends from July 4 to 26, from 8 am to 5 pm, at all state JPJ Offices and state Urban Transformation Centre (UTC) JPJ Offices for matters related to BUDI Diesel applications. Furthermore, MOF will allow registered owners of diesel vehicles to transfer diesel subsidy eligibility to immediate family members who are the actual users of the vehicles, subject to conditions and verification requirements to be determined. The mechanism for transferring subsidy eligibility will be announced through official BUDI MADANI channels once the technical details are finalized.
Additionally, the Cabinet has agreed to expand BUDI Diesel to cover company-owned private pick-up trucks and jeeps, considering feedback from small traders and users who rely on diesel vehicles for their daily work. The expansion is expected to benefit users who utilize diesel-powered pick-up trucks and jeeps for small businesses, daily commuting, as well as activities in rural and interior areas, subject to stipulated conditions.
The early access phase for BUDI Diesel begins tomorrow in Peninsular Malaysia, with subsidized diesel to be sold at RM2.15 per litre through MyKad verification at participating petrol stations. Full implementation will commence nationwide on July 1, with subsidized diesel priced at RM2.10 per litre for eligible Malaysians. Existing BUDI Diesel Individu recipients who received the RM400 cash assistance earlier this month will also be able to purchase diesel at subsidized prices through MyKad verification throughout the early access period.
At the same time, more private diesel vehicle owners in Peninsular Malaysia who had previously not received BUDI Diesel Individu cash assistance will gain access to subsidized diesel through BUDI Diesel. Private diesel vehicle owners may check their eligibility status and monthly quota through the official BUDI MADANI portal at www.budimadani.gov.my. Eligible owners of diesel-powered pick-up trucks and jeeps may also apply for an additional quota of 100 litres per month through the same portal.
The government will continue to monitor the implementation of the BUDI Diesel early access phase and review public feedback to ensure that the transition to the targeted diesel subsidy mechanism proceeds smoothly and that subsidy benefits reach eligible Malaysians.