Kuala Lumpur: The mechanism for the targeted RON95 subsidy is still being fine-tuned and will involve a two-tier pricing system as well as potentially involve using MyKad, said Second Finance Minister Datuk Seri Amir Hamzah Azizan. He emphasized that the government is not ready to make any pre-announcements about the subsidy’s implementation, with an official announcement expected after the first half of the year.

According to BERNAMA News Agency, Amir Hamzah explained that the primary focus is ensuring the system’s robustness. The two-tier pricing will consist of a non-subsidised price and a subsidised price, with more than 85 percent of the population eligible for the subsidised rate. This approach is part of Malaysia’s strategy for subsidy targeting.

The announcement was made during a press conference at the launch of the RapidKL Open Payment On-Demand system by Prasarana, attended by Transport Minister Anthony Loke and Prasarana Group president and chief executive officer Mohd Azharuddin Mat Sah.

Amir Hamzah highlighted the potential use of MyKad for subsidy targeting, drawing parallels to the system used for the Sumbangan Asas Rahmah (SARA) programme. Currently, SARA provides assistance to 700,000 recipients, who receive RM50 to RM100 monthly for purchasing goods through the MyKad system.

He noted that starting next week, the number of SARA beneficiaries will increase to 5.4 million, all of whom will utilize MyKad. With over 3,500 retail stores and supermarkets supporting the MyKad system for SARA, Amir Hamzah expressed confidence in its applicability for the RON95 subsidy.