Kuala Lumpur: The rationalisation of RON95 fuel subsidies will be implemented in the second half of 2025, announced Second Finance Minister Datuk Seri Amir Hamzah Azizan. The Ministry of Finance (MoF) is currently focused on identifying the groups eligible for these subsidies.

According to BERNAMA News Agency, the MoF will advance with the subsidy rationalisation process. The immediate priority is ensuring that the eligible recipients are properly identified. Prime Minister Datuk Seri Anwar Ibrahim and the Cabinet are in discussions to raise the threshold for Malaysians to qualify for the subsidies, as highlighted by Amir Hamzah at the Malaysian Institute of Accountants (MIA) International Accountants Conference 2025.

Furthermore, the government is contemplating the use of MyKad as a mechanism for executing targeted RON95 subsidies. Amir Hamzah noted that the Sumbangan Asas Rahmah (SARA) initiative, which utilized MyKad, has been effective, and the MoF is in the process of refining the system for subsidy adjustments.

Addressing concerns from industry players about delaying the implementation of the sales and services tax (SST), Amir Hamzah stated that the government is reviewing and considering stakeholder feedback. The government values the perspectives of all stakeholders and has engaged in discussions regarding the SST expansion to incorporate the feedback received.