Kuala lumpur: The government has no plans to replace the fuel subsidy under the BUDI95 scheme with cash rebates to encourage a shift to electric or hybrid vehicles, Finance Minister II Datuk Seri Amir Hamzah Azizan announced today. He emphasized that such a move would alter the original objective of BUDI95 and might undermine the effectiveness of the targeted subsidy for those who rely on internal combustion engine vehicles.
According to BERNAMA News Agency, Amir Hamzah stated that the primary goal of BUDI95 is to transition from a blanket subsidy to a targeted one, ensuring that fuel assistance reaches those who truly need it for income and daily necessities. He made these remarks during the Dewan Negara's oral question-and-answer session in response to a supplementary question about the effectiveness of the 600-litre quota under BUDI95 in promoting the shift to electric or hybrid vehicles.
Amir Hamzah clarified that the BUDI95 scheme is not designed to encourage the transition to EVs or hybrid vehicles. Its success is measured by reducing leakages, protecting target groups, and maintaining implementation stability from a user-experience perspective. He noted that efforts to promote the adoption of EVs and hybrids are addressed through separate frameworks, including the development of charging infrastructure and the National Automotive Policy.
Earlier, Amir Hamzah highlighted that more than 106,000 drivers, or 65 percent of about 164,000 registered e-hailing drivers, are eligible for fuel subsidies under the BUDI95 scheme. The eligibility is based on data from December 2025, with subsidies ranging from 600 litres to 800 litres. The monthly travel distance of each e-hailing driver is assessed using consolidated trip data from all e-hailing operators, verified by the Land Public Transport Agency (APAD) and the Commercial Vehicle Licensing Board (LPKP) in Sabah and Sarawak.
He also noted that only Malaysian citizens with a Public Service Vehicle driving licence and a valid e-hailing permit are eligible for subsidies. To prevent subsidy leakages to inactive or unauthorized drivers, EHOs must submit accurate, complete, and verified monthly trip records to APAD and LPKP. Drivers failing to meet the minimum travel activity will not automatically receive additional eligibility.
Amir Hamzah warned that enforcement action may be taken against drivers or EHOs submitting false or inconsistent information compared with system records.